In 2017, Congress passed the Tax Cuts and Jobs Act. Within that legislation lives the Investing in Opportunity Act, which is meant to spur economic investment in low-income communities called Opportunity Zones. The Act also enables investors to defer and reduce their tax burden on capital gains by investing the proceeds in these areas.
There are more than 8,500 Zones in the US. The opportunities are abundant - but you have to know what to look for when it comes to investment potential. Here’s a closer look at why the team and I at Greatwater have homed in on a select number of strategic neighborhoods within Detroit.
When compared to other major metropolitan areas, Detroit is still often considered an emerging market. The city is incredibly ripe for growth, welcoming businesses from around the world by offering a variety of financial resources and incentives. Detroit now also attracts residents from outside the metro seeking a high quality of life in a big city at a very affordable price.
Municipal investments are making big progress possible. Before bankruptcy, Detroit spent almost 40% of its budget on debt and pension payments. After restructuring, it spends less than 15%. Thanks to this, the City can invest an additional $1.7 billion in services and infrastructure over the next decade.
Additionally, Detroit is a big city, and it has many Opportunity Zones, making it an ideal location to look deeper into for investment.
Which Neighborhoods Have The Most Potential…And Why?
Before deciding where to make any investments, we took a very close look at all of the Opportunity Zones within Detroit. After thorough analysis, we narrowed our focus on neighborhoods with the greatest potential for our investors, as well as the local community.
The following attributes remain consistent throughout the areas where our Projects take place:
Rapid access to Detroit’s Central Business District via public transportation
Bike and pedestrian accessibility
Walkable neighborhood experience
How Can I Get Involved?
If you are interested in learning more, please Contact Us. We’d love to chat!