What are Opportunity Zones?

Real estate investment has recovered in a big way since the housing market crash in 2007. Investors are thriving and there are many new ways to invest. Opportunity Zones are quickly gaining traction as a viable investment in the commercial real estate space. But what are Opportunity Zones? Today in the Southeast International Hotel Brokers blog, we’ll break them down.

What are Opportunity Zones

Opportunity Zones are a developmental program designed to benefit low-income areas across the United States. These zones are selected if they have a need for development, but potential as an investment. In the long-term, these investments are meant to pay off, while simultaneously improving the urban or rural area through continued development.

Why Should I Care?

If you’re wondering why you should care about these investments, it’s right in the name. These are potentially huge opportunities for investment. Not only do you have the possibility that the area will be worth much more after development, but you also have the incentive of tax breaks on any capital gains you make. The longer you hold your investment in these Opportunity Zones, the better your tax break. You get these tax breaks by holding your investment in an Opportunity Fund, which is an investment vehicle for investors who want to hold an asset within the zone.

Now, as a hotel owner, you may be wondering how this applies to you. One of the best investments you can make in an Opportunity Zone is an investment in a commercial property within the zone. To do this, you need to find a Qualified Opportunity Zone Property, reinvest any existing capitalized gains into the property, and invest your capital gains from the property into your Opportunity Fund. The longer you do this, the bigger your tax breaks will be.

As you can see, the potential is definitely there. You just need to find the right property in the right area and make an investment that makes sense to you.

Choose Southeast International Hotel Brokers

If you’re looking to buy or sell a hotel, trust the experts at Southeast International Hotel Brokers to help you through the process. Our hospitality brokers have the expertise, knowledge, and resources to make everything as easy as possible. Our dedication to customer service and satisfaction is unparalleled. Contact us today for more information and to speak with a member of our hospitality broker team.