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Opportunity Zones Make an Impact

Between April and September of 2018, there were a large number of developers and investors in the Miami-Dade County area that have been putting their money into Opportunity Zones. In fact, there was an increase of 25%, up to $942 million, from the same period of time a year earlier.

Eighty Seven Park Opportunity Zones

These zones were brought about during the tax overhaul plan from December of 2017, and they started to really get the attention of investors during the summer of 2018. The investors were interested in finding a program that was capable of providing incentives for making investments in areas that were low-income. The program works simply enough.

It will let the property owners and the developers defer their capital gains taxes or taxes that have resulted from selling certain assets. In some cases, the property owners and developers may be able to forgo paying some of these taxes entirely, not simply defer them. There are many of these Opportunity Zones around the country, including a number in Miami-Dade County. In order to take the full tax benefit of these types of properties, though, the investors will be required to hold onto the property for a minimum of 10 years.

Turnberry Ocean Club Opportunity Zones

In Miami, this could be an extremely smart move. After all, there is a limited amount of land here and it is very scarce. With the addition of the tax advantages, it has the potential to greatly increase the value of the property. During the second and third quarter of last year, the area of North Miami Beach saw a drastic increase in the number of Opportunity Zone sales. In 2017, there were $8 million in sales in the area, but in 2018, this number skyrocketed all the way up to $83 million.

This is an exciting time for investors, and it appears as though there are more and more investors who are looking to get in on the action. However, it is important to note that the government has not yet released all of the guidelines about the program. There are still certain areas that are not entirely clear and questions that need to be answered.

Still, investors throughout the South Florida area are looking at the various Opportunity Zones and options in the area, particularly in distressed areas. They are looking for the best possible investment options to help net them the greatest return on their investment.

Sunny Isles Real Estate Expert

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