If you are a seasoned investor, then most likely you know the different investment opportunities waiting for you. An Opportunity zone is one of it. It is an economic tool giving you the chance to invest in areas in the United States tagged as distressed areas. The primary goal is to spur economic growth and at the same time provide income opportunities in low-income areas. The beauty of opportunity zone is that it does not only benefit low-income communities, but also provide tax benefits to investors. If you are a taxpayer, you can take advantage of opportunity zones through Qualified Opportunity Funds.
Qualifying In Opportunity Zone
What is the parameter to qualify at opportunity zone? If you look at the goal or purpose of opportunity zone, it is primarily created to revitalize economically challenged communities. Investors put their investment in these communities so as to provide work to the community and eventually uplift the community’s overall economic status. Those categorized as opportunity zones are distressed community with economic status as the main basis. There should be evident of high employment rates, low income people, and other indicators of economic issues.
Investments in Opportunity Zones
There are various types of investments available for investors in opportunity zones. Some of the commonly used investment types include the following:
- Investing in real estate in opportunity zones – Investors choose a property within the opportunity zones and do the necessary renovation or development. It can range from residential properties to commercial properties. It can also include farming facilities – something that can provide economy boost to the community.
- Business equity investments – Another way to investment in opportunity zones is by acquiring equity in the existing business in the opportunity zones. In other words, there are already existing businesses within the opportunity zone and you are taking the chance to invest on those businesses. It is one of the common investment routes taken by investors as it does not need much effort, although, it does require a thorough research so as to make sure that your investment will not be put to waste.
