GO Zone Real Estate Investment Opportunities
After Katrina caused such destruction along the Gulf Coast, the US Congress passed the Gulf Opportunity Zone Act of 2005 also known as the GO Zone Investment act to support people interested in investing in the region. This Act gives investors the opportunity to write off up to 50% of GO Zone depreciation in the first year. This will allow an individual to possible offset all of their taxable income. This creates an unmatched investment opportunity for investors.
No matter what the real estate investment, timing is absolutely crucial. The highest profits are made when properties are purchased right at the beginning of growth. Right now, the Biloxi and Vancleave areas offer the most attractive investment opportunity in the entire GO Zone investment region.
There are a number of factors that make Biloxi and Vancleave so attractive to the investor looking to purchase a slice of the GO Zone pie.
In any real estate boom, the rates of migration into the region are a deciding factor. These rates today are the highest in Biloxi. New laws that allow casinos to be built on land, as opposed to being restricted to barges in the past have spurred casino development. With old casinos reporting record revenues and new casinos in the pipeline, this area is poised to become the second gaming capital of the country.
Although casino development plays a large part in the growth of Biloxi and Gulfport, they are not the only factors that are spearheading growth. There is the NASA Stennis Space Center which cushioned what could have been a catastrophic job loss after Katrina.
This increase in migration means an increase in job opportunities, and the job market in this region is exciting. The casinos themselves are believed to need at least 20,000 more workers in the near future.
The GO Zone investment incentives offered by the federal government are most attractive in Hancock County, Harrison County and Jackson County. These 3 counties experienced the maximum devastation during Katrina.
The rental situation in this region is chaotic, because of the lack of affordable high quality housing near the casinos. Employees are being trucked into work on hour long drives. Those who rent are forced to stay in trailers provided by FEMA. The situation is only expected to be aggravated by the sub prime crisis. This lack of housing is the reason why the GO Zone tax incentives have been offered by the government.
A sizzling job market, high rate of migration and the GO Zone incentives are the pillars supporting property appreciation in this region. Appreciation is, in fact, expected to be over 50% over the next 5 years. With Biloxi and Gulfport having the potential to become the south’s answer to Las Vegas in the coming years, and the close distance to New Orleans, it is highly likely that a new megapolis will rise in the future, making this area the ideal place for investment opportunities.