GO Zone Brings Investment Opportunities
The Alabama Gulf Coast continues to attract real estate investors after hurricanes wreaked havoc on the area, although the type investor has changed.
The new investor profile in the area: An individual investor buying a single family home under $200,000 that will be rented for the next 15 years. Many finance with a home equity loan from their primary residence or purchase the home using funds in their Individual Retirement Account (IRA). Homes may also be purchased with traditional mortgages.
Alabama’s Gulf Coast area uniquely qualifies as a top investment area for two main reasons. First, President Bush declared Baldwin County as the eastern CORE area qualifying investors under the Gulf Opportunity Act of 2005 (GO Zone). This presents never-before-offered Federal tax incentives for real estate investors. For example, up to 70% depreciation may be taken in Year 1.
Secondly, in March 2006 the U.S. Census Bureau named Baldwin County as the 100th fastest growing county in America. Current population is 163,000 with a 3.8%
Annual Growth Rate.
“Huge amounts of retail development along the intracoastal waterway alone will require thousands of workers that we do not currently have, and there is not enough housing to house them,” says Gulf Shores Councilman Steve Jones.
American City Business Journals (ACBJ) on June 27, 2005 ranked Baldwin County #1 in the South Central Region for Counties that offer a less expensive, more relaxed alternative for Quality of Life in non-metropolitan Communities.
You don’t have to be a savvy, experienced investor to get started in the gulf coast area. Some of the real estate agents in the area know about unadvertised deals just a few miles north of the beach, most will negotiate with the builders for your benefit.
For more information on the Gulf Opportunity Act of 2005, request Publication 4492 from the Internal Revenue Service.
Tami Roberts of Dottie Studt Realty does not provide legal or tax advice, you must consult with your own attorney or CPA pertaining to your personal situation. Read more about Tami and view her current listings.