Are you looking to take your real estate investing venture to another level? Or, are you simply trying to get your real estate business on the map? It may be worth your while to look into the opportunities that come with Opportunity Zones, which are capturing the attention of many investors in United States today, according to Investar USA. Let’s take a look at what these zones are and how you can take advantage of them.
The purpose of Qualified Opportunity Zones is to encourage investment, development and job creation in economically distressed communities.
The Opportunity Zone designation is spelled out in the Tax Cuts and Jobs Act from 2017. Since this law passed, you can find Opportunity Zones in all areas of the United States. In fact, there are over 8,700 of these zones in America.
If you choose to invest in an opportunity zone, you must agree to follow the rules associated with investing in these qualified zones. But don’t worry -- your willingness to comply with these rules will yield some rewards. Specifically, you’ll be able to take advantage of major incentives related to the capital gains tax both immediately and long term.
Whenever you divest real estate, you generally have to pay capital gains tax on your earnings. However, if you divest a property in an opportunity zone and then place this capital gains in an Opportunity Fund, you can reduce and defer your tax liability associated with that gain. In addition, you don’t have to pay taxes on any appreciation you earn in the future through this fund.
Thanks to these incentives, you save money at tax time when you become an Opportunity Fund investor. For this reason, investing in Opportunity Zones may be one of the smartest financial moves you can make this year and in the years ahead.
Friday, September 20, 2019
Thursday, September 19, 2019
Investar USA: The Current Pros and Cons of Real Estate Investing
As an investor, you’re naturally passionate about making money in the most efficient and effective way possible. That’s why you’re drawn to real estate, an area that plays a critical part in the economy of Alberta, Canada. But is it truly a great area to invest in? Here’s a rundown on the opportunities that real estate currently presents, as well as the challenges that come with this area of the economy, according to leading real estate company Investar USA.
The economy of Canada has been doing fairly well since it suffered a crash in the second quarter of 2016. At that time, it experienced its worst gross domestic product in seven years. However, these days, experts say that Canada’s economy is in a much better position. The economy experienced excellent growth during the second quarter of 2019, expanding nearly 4%. In addition, all of this happened in spite of the rocky economic environment worldwide. All of this means potentially new business opportunities in Canada, which means a greater demand for properties.
Real estate investment trusts, or REITs, are especially popular at the moment. These organizations, which are professionally managed, buy and manage commercial properties with the goal of generating for investors equity appreciation and cash flow. REITs are in such great demand because they require relatively low minimum investments and shares are easy to buy and sell. This has encouraged many average investors to finally get into the real estate market.
Of course, the challenge with real estate right now is that if a recession happens in the near future, this could cause the demand for properties to decrease. This can have an especially adverse effect on investors who have poured their money into areas of the nation that are more heavily hit by the economic downturn.
Nonetheless, compared with other areas that you could choose to invest in, real estate offers a great deal of potential. Thus, the property market remains an extremely attractive and prudent option for serious investors both now and in the years ahead.
Types on investments, REIT’s typically spread their holdings over several regions of the Country. This hedges the investors risk over many assets and locations as typically the economies of individual regions are different.
The economy of Canada has been doing fairly well since it suffered a crash in the second quarter of 2016. At that time, it experienced its worst gross domestic product in seven years. However, these days, experts say that Canada’s economy is in a much better position. The economy experienced excellent growth during the second quarter of 2019, expanding nearly 4%. In addition, all of this happened in spite of the rocky economic environment worldwide. All of this means potentially new business opportunities in Canada, which means a greater demand for properties.
Real estate investment trusts, or REITs, are especially popular at the moment. These organizations, which are professionally managed, buy and manage commercial properties with the goal of generating for investors equity appreciation and cash flow. REITs are in such great demand because they require relatively low minimum investments and shares are easy to buy and sell. This has encouraged many average investors to finally get into the real estate market.
Of course, the challenge with real estate right now is that if a recession happens in the near future, this could cause the demand for properties to decrease. This can have an especially adverse effect on investors who have poured their money into areas of the nation that are more heavily hit by the economic downturn.
Nonetheless, compared with other areas that you could choose to invest in, real estate offers a great deal of potential. Thus, the property market remains an extremely attractive and prudent option for serious investors both now and in the years ahead.
Types on investments, REIT’s typically spread their holdings over several regions of the Country. This hedges the investors risk over many assets and locations as typically the economies of individual regions are different.
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