US GO Zone offers tax incentives and tenants in waiting

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by Gill Montia

Property investors are being invited to consider America’s GO Zone (Gulf Opportunity Zone).

The zone relates to the areas of the US devastated by hurricanes Katrina and Rita, which took place in 2005.

It covers the States of Louisiana, Mississippi and Alabama in an areas roughly the size of the UK.

The US Government has developed a number of initiatives to kick start reinvestment into communities ravaged by the hurricanes.

As a result, international property investors can secure taxation and financial incentives while making purchases at less than market value. They can also generate an almost immediate and sustainable rental income.

The majority of people who lived in the areas affected by the hurricanes were in rental accommodation and investors buying the new properties under construction can find tenants in waiting.

In addition, the amount of the investment can be claimed back against the investor’s tax liability for the first five years.

However, potential purchasers need to do their homework, because while opportunities exist across the entire GO Zone, not every property development project qualifies for the incentives.