The Benefits of Opportunity Zones

first_img California is facing a housing shortage and affordability crisis, but Opportunity Zones may serve to alleviate these concerns. In a post on Forbes, Ridaa Murad, founder of BREAKFORM | RE. and Co-Founder of BEDROCK | Group discusses the pros of investing in any of the 879 federally designated Opportunity Zones (the most in the country).According to a report from ATTOM Data Solutions earlier this year, homes in Opportunity Zones are cheaper than the average home.The report found that roughly 80% of these zones had median home prices in the Q2 2019 that were below the national figure of $266,000, and that half had median prices of less than $150,000.Additionally, compared to the surrounding regions, median Q2 2019 prices in about one in four zones were less than 50% of the typical value in the Metropolitan Statistical Areas where they exist. Within Opportunity Zones, 86% had median Q2 2019 sales prices that were less than the median sales price for the surrounding Metropolitan Statistical Area (MSA). Roughly 26% had median sales prices less than half the figure for the MSA. Only 14% had median sales prices that were equal to or above the median sales price in the MSA.“As investors, we always want to maximize our return, and as humans, we want to do good and make a positive impact in our communities,” Murad said. “Opportunity zones give investors the chance to do well financially while also contributing to the betterment of local communities that desperately need economic improvement.”Murad covered the social impact of opportunity zone investment, including a long-term hold strategy associated with Opportunity Zones, as the investment must be held for a period of 10 years. Additionally, Zones force developers to secure land for communities where there is a demand, and the alternative building processes are cost-friendlier.Another bonus for investors and homebuyers is that the nontaxed exit gains eliminates price-gauging.“When the profit isn’t taxed, it removes the need to squeeze every last penny out of the buyer on the front end,” Murad said. “The opportunity exists to create a business that doesn’t have to price-gauge because back-end profits remain intact.”Find Murad’s complete commentary here. The Benefits of Opportunity Zones Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Investment, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / The Benefits of Opportunity Zones About Author: Seth Welborn Demand Propels Home Prices Upward 2 days agocenter_img Previous: Analytics Tool Launched by Mortgage Company Next: Freddie Mac Finalizes $369M NPL Sale California Investment Opportunity Zones 2019-11-07 Seth Welborn Share Save Tagged with: California Investment Opportunity Zones The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Related Articles Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily November 7, 2019 955 Views last_img read more