How Opportunity Funds Work
Opportunity Zones have investment vehicles, called Opportunity Funds, that are designed exclusively for investing in houses within the limits of these low-income zones. To qualify as Opportunity Zone projects, the properties have to meet specific criteria, including the condition that they will be considerably enhanced.
To take advantage of the Opportunity Fund, investors are required to allot over 90% of the fund’s assets to the Opportunity Zone property. An investor home buyer who wishes to put their capital gains income in the Opportunity Fund has 180 days to do so.
If an investor holds the property for ten years or more, the capital gains taxes may be waived altogether, but even under that timeframe the capital gains taxes will be deferred. Federal tax can be deferred until the end of 2026 and reduced by no more than 15%.
Home Buyers Help Solve the Problem
To simultaneously take advantage of significant tax benefits and be a part of the solution to the affordable housing crisis, interested home buyers should take the next step and invest in Opportunity Zones. Growth, stability, and new opportunities for underprivileged communities are just three of the outcomes of investing in qualified projects.
This is a unique opportunity to bring revitalization to specific low-income areas. The more funds an investor allocates to Opportunity Zone projects (via the Opportunity Funds vehicle) the more affordable housing options will exist. On a personal level, this program allows investors the privilege and satisfaction of contributing to the rekindling and rejuvenation of the local community.
How to Invest in Opportunity Zones
There are no special licenses or prerequisites to invest in an Opportunity Zone; anyone can do it. Interested investors can locate local Opportunity Zones by visiting the Opportunity Zones Resource page.
Often, homeowners choose to sell their home directly to an investor rather than take the traditional home-selling route. Selling a house to a home-buying company saves you the trouble and expense of marketing. No preparations, showings, repairs, or inspections will save you time, energy, and money.
Houston Capital Home Buyers is a house-buying company that purchases houses as-is in Houston, around the state, and even around the country. We have a $26 million purchase record and a twelve-year history of buying homes.
Your home may be exactly what a Millennial buyer is looking for, or it may be the opposite. Either way, if you are interested in a fast and hassle-free sale of your property, contact Houston Capital Home Buyers today. We will make you a purchase offer within 24 hours of receiving your request and won’t pressure you to make a decision.
*Thank you to The Washington Post, Cornerstone Home Lending, the National Association of Home Builders, Keller Williams Realty, and The Balance for the statistics and facts used in this article.