Don’t let numbers fool you, there’s some real opportunities in those zones...
Historically sales numbers and pricing in the census tracts, now known as the opportunity zones, have been tough. By tough I mean over the last 20 years or so, there has been zero growth. In fact, there has been a steady decline in not only sales quantity but also pricing. I was recently reading an article on the Reonomy site and saw the chart in the article. They say a picture’s worth a thousand words... so ouch...very ouch baby....
If that’s not bad enough, since the announcement of the Opportunity Zones being included into the tax laws...yep you guessed it the numbers are still declining!
So what does this mean in our little slice of heaven for Staten Island Real Estate in the opportunity zones? Run for the hills, stay away, fool’s gold.... NO WAY. I am super bullish on these zones. How is that possible you ask, let me explain....
The more and more investors I speak with in our market, the more and more I realize experts of these zones are few and far between. Most have a general knowledge - but very few have any in depth knowledge - and almost none of the real estate investors I have spoken with have actually devised a platform and strategy for the opportunity zones.
When the first tranche of interpretations was released, to say there was some uncertainty is the understatement of the year. While there appeared to be some serious.. well..opportunities - there was so much uncertainty - most local investors took the high road and didn’t pursue it past initial exploratory discussions. As you can imagine ambiguity and tax issues go together like oil and water.
One May 1, 2019 the second round of clarifications or proposed qualified opportunity zone regulations were made available. This round really cleared up some of the ambiguities - and in my opinion clearly answered the master lease issue. This opens up the proverbial flood gates for existing property owners- One of the main issues for property owners in the opportunity zones in Staten Island.
We are currently deploying a strategy to capitalize on these Opportunity Zones in the months and years ahead. If you are interested in learning more about the investment opportunities available in these zones contact me at 718.816.7799 or hit me up on social.
As always make sure you consult with attorneys and tax professionals when making investment decisions.
By: James Prendamano
Posted by PreReal™ Prendamano Real Estate on
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