Investar USA: Is There Opportunity in Opportunity Zones?

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.

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.

Investar USA: What Does “Workforce Housing” Mean?

Amid talks that a global recession is on the way -- and the fact that Alberta, Canada is currently experiencing a tough economic environment -- you may understandably be wondering what the best place to invest your money is. Specifically, in real estate, should you target commercial properties, or should you focus on workforce housing? Savvy investors today are sticking with the latter, according to Investar USA. Not sure exactly what this type of housing is? Here’s a primer on workforce housing and what this type of multifamily housing has to offer the modern investor.

The idea of workforce housing today stems from past efforts to provide workers at luxurious resort communities with housing. This was done years ago because these workers otherwise would not have been able to afford to reside in their employers’ towns in light of the huge disparity between housing costs and income.

A common misnomer, though, is that this type of housing is essentially “affordable housing.” The truth is, to be more accurate, you should call workforce housing “housing that happens to be affordable.” That’s because it doesn’t target members of the lower class; rather, it caters to many middle-class..

The challenge with investing in workforce housing is that renters might not be able to absorb increases in rent during an economic downturn. After all, over 33% of modern workers are paying rents that take up nearly a third of their incomes. In addition, during a recession, the demand for housing will decline. Still, compared with other types of real estate assets, workforce housing should do relatively well considering the circumstances.

In light of this, many institutional investors have been focused on investing in workforce housing. If you’re interested in keeping your bottom line strong in the years ahead, no matter how well or poorly the economy performs, it may be in your best interest to follow suit.

Investar USA: What Does “Workforce Housing” Mean?

Amid talks that a global recession is on the way -- one that may ultimately affectand the fact that Alberta, Canada is currently experiencing a tough economic environment -- you may understandably be wondering what the best place to invest your money is. Specifically, in real estate, should you target office commercial properties, or should you focus on workforce housing? Savvy investors today are sticking with the latter, according to the experts at Investar USA. Not sure exactly what this type of housing is? Here’s a primer on workforce housing and what this type of multifamily housing has to offer the modern investor.

The idea of workforce housing today stems from past efforts to provide workers at luxurious resort communities with housing. This was done years ago because these workers otherwise would not have been able to afford to reside in their employers’ towns in light of the huge disparity between housing costs and income.

A common misnomer, though, is that this type of housing is essentially “affordable housing.” The truth is, to be more accurate, you should call workforce housing “housing that happens to be affordable.” That’s because it doesn’t target members of the lower class; rather, it caters to many middle-class. professionals.

The challenge with investing in workforce housing is that renters might not be able to absorb increases in rent during an economic downturn. After all, even with the economy growing today, over 33% of modern workers are paying rents that take up nearly a third of their incomes. In addition, during a recession, which experts say will happen soon, the demand for housing will decline. Still, compared with other types of real estate assets, workforce housing should do relatively well considering the circumstances.

In light of this, many institutional investors have been focused on investing in workforce housing. If you’re interested in keeping your bottom line strong in the years ahead, no matter how well or poorly the economy performs, it may be in your best interest to follow suit.

Investar USA: Las Vegas May be the Next Hot Multifamily Market

With abundant new construction, job opportunities increasing, and luxury living accommodations developing at an exhausting pace, the Las Vegas market is ripe for affordable multifamily housing. In the following article, the team from Investar USA suggests that Las Vegas workforce housing may offer excellent investment opportunities for both individual and institutional investors. Investar USA is a real estate development and management leader, specializing in commercial and residential properties.
As the local economy flourishes and workers of all skill levels become increasingly needed, workforce multifamily residences in Las Vegas are becoming ever more sought-after. Investors who want to take advantage of long-term potential as new developments take shape could reap significant rewards in the long term. A few prominent projects include:

• • Symphony Park residential buildings. These high-end residences and commercial spaces will accommodate 324 luxury apartments. The buildings' proximity to The Smith Center for the Performing Arts are likely to make the development a highly desirable property.

• Circa Hotel and Resort. This development will be Downtown Las Vegas's first casino in more than 20 years, opening on Fremont Street in 2020. Completion of the resort will require the participation of more than 1,500 skilled workers.

• Viva Vision light show. Another Fremont Street attraction, the Viva Vision light show canopy will undergo a $32 million renovation, adding additional exciting features to an already spectacular installation. First unveiled in 1995, this light show features the largest standalone video screen in the world. The upgrade will intensify the brightness of the display by a factor of seven, and new LED technology will allow the display to be shown during the day.

With existing and announced construction projects creating fantastic opportunities, now may be the time to seriously consider how multifamily housing investments may pay solid dividends for years to come.
Investar USA has been a Phoenix, Arizona real estate mainstay for more than 30 years, offering solid property investment opportunities for both private and corporate investors.

Investar USA: Multifamily Renovations & the Value-Add Approach

As a real estate investor, you’re naturally eager to achieve strong financial yields when you own a multifamily property. And you’re not alone. Many investors specifically look for properties where they’ll be able to increase the rents, also known as value-add properties. Here’s a look at what the value-add approach involves in real estate investing, according to Investar USA.

At the moment, apartment building rents are not growing very quickly, and this has sparked a real estate price growth slowdown. Fortunately, though, you as an investor can still secure value-add properties -- properties where renovations totaling $5,000, for example, can justify higher rent amounts.

If you’re interested in purchasing a value-add property, you may notice in your search that the greatest demand for these types of properties exists for less expensive, older apartment buildings. Why? Because even if investors increase the rents in these types of properties, the rents will still be a lot lower than those associated with brand-new apartment buildings. Older apartment buildings in suburban areas surrounding growing cities are especially popular to value-add real estate investors.
However, some investors in multifamily properties are locating buildings to purchase and remodel in neighborhoods that are being gentrified near thriving downtown areas. In these particular markets, rents are on the rise with the spread of luxury apartment construction.

An example of the type of market mentioned above is the metro area of New York, which currently has more than 20,000 apartment units being newly constructed in urban areas on the periphery of the city, such as Queens, the southwest area of Brooklyn, New Jersey, and the Bronx. This 20,000-plus number is far larger than the estimated 5,000 units that are currently being constructed in the core part of the city.

Investors are clearly spending big money on value-add properties these days. So, if you’re interested in strengthening your bottom line this year, now couldn’t be a better time to try to make the value-add approach work for you as well.

Investar USA: Add Single-Family Homes to Multifamily Portfolio

Your real estate investment portfolio may be filled with multifamily homes -- and for good reason. These properties generally offer an excellent bang for your buck, with money flowing in from multiple tenants versus just one. However, there’s still room in your portfolio for single-family homes, according to Investar USA. Why? Let’s take a peek at the advantages of adding a single-family home to your multifamily rental portfolio this year.

As a general rule of thumb, single-family homes are easier to maintain than multifamily buildings are. This makes them extremely attractive to landlords who have no intention of employing property managers. After all, the older you get, and the wealthier you become, the more you want to minimize your staffing overhead.

On top of this, single-family homes may offer higher returns than multifamily homes in your area. According to investors, a major advantage of a multifamily building is that it offers economies of scale, or the lower per-unit costs enjoyed by larger entities. However, in some situations, you may find a single-unit property that provides you with a much better return than a multifamily property would. After all, the latter still comes with more expenses, features higher turnover, and demands more management.

Also, note that a multifamily property’s value depends on the property’s generated income. However, a single-family home’s value isn’t based on the income generated; instead, it’s based on what a buyer is willing to pay for it. This means that if you find a real estate market featuring higher rents compared with home values, you could generate more money with a single-family home than you would with a multifamily property.

The overall lesson here for real estate investors? Don’t discount the power and value of a single-family home in today’s rental market.