US cash back for UK investors

 

 

The time has probably never been better to capitalise from American's weak dollar and desire to sell off housing stock. In the majority of states, you can find real estate at below market value that should rent well over the long-term and deliver you solid returns.  

Nowhere is quite as attractive for today’s real estate investor as America’s GO Zone. The GO Zone is the Gulf Opportunity Zone that covers the Hurricane Katrina affected states such as Mississippi, Alabama and Louisiana. These States now offer exceptionally attractive government incentives for investors to purchase housing stock for rental to the awaiting displaced tenant demand.

US government is offering cash back to UK investors

"The US government passed legislation back in 2005 to make investing in the GO Zone as financially attractive as possible to rejuvenate affected communities, regenerate positive economic fundamentals and house those whose homes had been destroyed," expalins Danny Silver, MD of Property Direct America.

 

“Thanks to the overwhelming success of the legislation, jobs are being created, house prices are rising, demand for accommodation is increasing, affordability is improving and the economic conditions in the affected states are improving in spite of the state of the overall American economy.

 

Developers compete to lure UK investors 

“And in addition to the government’s attractive fiscal and taxation incentives to buy in and effectively house American citizens in the GO Zone, local developers are also competing against each other to make their developments more attractive to more investors meaning that investors who buy in now can walk away with some really profitable property.”

One investment marketing itself to UK investors is Bayside Park in Biloxi pictured here.

Bayside Park, Biloxi in US Gulf Opportunities Zone offers UK property investors many incentives

 

 

 

 

 

 

 

 

 

 

 

 

The GO Zone incentive offers sweeteners: 

  • Property on land already subsidised by the US government. ie. property at below market value (although how one claculates a depressed mareekt is anyone's guess)
  • Low Entry Prices start from £68,000 / $135,000
  • A refundable $5,500 deposit - refundable if you change your mind, or can be used towards your closing costs…any additional closing costs are guaranteed to be met by the constructor, saving buyers a potential maximum of $6,750
  • A 90% mortgage offered by the developer’s private lender If you move quickly (an offer limited to a few international investors)
  • The mortgage is guaranteed as it is based on the property and not the investor, however there are only so many properties at Bayside Park that the lender will mortgage with these most favourable terms, so you need to register your interest immediately.
  • If applying for the 90% mortgage option, buyers need only find a 10% deposit.
  • The deposit is held in trust by the developer’s lawyer until signing of title deeds, therefore every element of the investment is secured.
  • By purchasing a property at Bayside Park and renting it to the awaiting tenant demand for at least three consecutive years, not only will you enjoy a strong rental income but the US government will give you a cheque for $36,500 per property you purchase.  I.e., they will refund you 20% of the property’s purchase price as a golden ‘thank you’ for helping in the GO Zone.
  • Your mortgage interest, your property taxes, management fees and all expenses you incur directly relating to your property - from travel expenses to decorating costs - are totally tax deductible from all your rental income and profit.
  • You have a 50% depreciation bonus which can be carried forward for up to 15 years to further offset any taxation liability ensuring that you profit to the max on your Bayside Park property purchase.
  • Your property can be completed and bringing you a rental return on your investment in as little as 90 – 120 days. 

For details on 90% mortgage deals and properties for sale at Bayside Park, please contact Property Direct America on 0207 043 0792