How Do Opportunity Zones Affect Senior Housing Investments?

Fact: Nearing the end of 2017, $6 trillion dollars of unrealized capital gains in the U.S. had accumulated. The best way to reinvest that money is through senior living investments in Opportunity Zones.

It’s about that time: the Baby Boomer generation is ready to settle down and will skyrocket the need for senior housing in the coming years. With this high demand, Opportunity Zones are ideal for senior housing investments. There are 8,700 designated zones in the United States; a plethora of locations are up for grabs.

And those choosing to make the investment won’t regret it.

Reap the Benefits

As of December 2017, investors can reinvest their gains 180 days after the date of sale. Investment in a qualified opportunity zone business allows for substantial tax incentives such as deferred taxes, decrease in tax on capital gains, and ultimately permanent exclusion of tax on capital gains.

Because of the Investing in Opportunity Act, Opportunity Zones strongly motivate investors to initiate housing investments in these areas. These investments are defined as Opportunity Funds, but the funds can only be used if the property is an operating business.

Only 100 percent of the building value must be reinvested, the land is excluded. This means that investors can redevelop preexisting buildings in metropolitan areas into housing for seniors. This is why Opportunity Zones will significantly effect senior housing and assisted living industries.

A Practical Decision

Senior housing will flourish in these zones. Because the zones are normally located in low-income areas, it is realistic for seniors who are living on fixed incomes. These areas are attractive to seniors because they are usually in close range of transportation, shopping, and dining.

The tax benefits given to those investing in the zones, mixed with the demand for senior housing, will produce a significant increase in development.

Money spent on labor and development will land back into investors’ pockets thanks to these benefits. It is a practical decision for investors looking into Opportunity Zones to focus on senior housing. The market is high, and the clientele offers a solid renter’s foundation.

The zones offer seniors what they need and want: housing in close range to the city in an affordable area.

And investors get what they need and want: big tax breaks on fruitful properties.

A list and map of available Opportunity Zone locations is easily accessible for all parties to ensure that their chosen location meets the qualifications and policies.

Senior Housing Investments Done Right

With capital gains at a high, the economy is destined to bloom quickly. Communities will blossom with housing investments, and the Baby Boomers are on the lookout for new housing facilities.

Senior housing investors should consult with a senior housing property management company that offers services for management, marketing, development, and marketing analysis feasibility consulting.

Investors who work with senior living property management that uphold an outstanding commitment and philosophy will strive. Together, the dedicated team will see a plentiful future.

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