Worldwide Property Showcase and GO Zone Property in America

The term GO Zone means Gulf Opportunity Zone and it relates to the areas of the United States devastated by hurricanes in 2005.  The area is roughly the size of the UK and it covers the States of Louisiana, Mississippi and Alabama and the term GO Zone relates to American government initiatives to kick start reinvestment into communities ravaged by both Hurricane Katrina and Rita.

The GO Zone Act gives international property investors huge taxation and financial incentives to buy in to parts of America under market value and generate an almost immediate and sustainable rental income.  In the Shelter Offshore Worldwide Property Showcase section, today we look at GO Zone property in America.

The American government announced its plans to help rebuild the lives of those affected by the hurricanes almost immediately following President Bush’s assessment of the regions damaged.  To bring in the huge levels of international financial commitment required to fund just the housing costs the government knew it needed to do something significant to draw investor interest.  As a result it came up with a series of attractive financial advantages available only to those who committed to buying real estate stock in the GO Zone.

Basically the majority of people who lived in the areas most affected by the hurricanes were tenants living in rental accommodation.  To get investors to come in and buy up all the new properties being constructed to then rent to the tenants in waiting, the American government will allow you to claim back all the money invested against your first years tax liability, to get ‘cash back’ on what you buy, buy on government subsidised land and therefore buy a property more cheaply than it is worth, to effectively afford two properties for the price of one and a half, pay lower than normal property taxes and to get in on a government management programme which will look after your property, see it is let out and that you earn rental yields from it.

The incentives are so attractive to buy property in America in the GO Zone that they are only available to those who commit by the end of 2008.  If you are interested in this scheme then you’re not the only one, Brad Pitt has already bought in and is also sponsoring property related programmes in New Orleans for example.  Opportunities exist across the GO Zone, but make sure any property development project you look at qualifies for the incentives, and speak to a tax adviser about the exact benefits you will enjoy as they can vary depending on your personal status.