Investing in Opportunity Zones in Charlotte, NC

[Kevin Akers]

Charlotte, North Carolina, has become a hot market for both homebuyers and investors alike. Due to a significant spike in demand, housing prices have skyrocketed, making it nearly impossible in some areas of the city to find solid returns as a real estate investor. However, there are still some great opportunities within Charlotte that can deliver strong investment potential. These areas are called Opportunity Zones. Opportunity Zones are designated distressed areas where long-term investment and development are encouraged.

3 Reasons Why You Should Invest in Opportunity Zones

1. Defer or Eliminate Capital Gains Tax Obligations
   When investing in Opportunity Zones through a Qualified Opportunity Fund (QOF), you have the potential to defer your capital gains taxes. If you hold the investment for a specific period, you may even eliminate the taxes altogether.
2. Economic Growth:
   Investing in low-income areas undergoing gentrification can yield excellent returns. Since the goal is to revitalize these areas, property values—both for homes and rental properties—are expected to increase as the neighborhood improves.
3. Community Impact:
   Of course, the main goal of any investment is to generate a profitable return. However, investing in Opportunity Zones also allows you to have a positive impact on the community. You can directly contribute to improving the area, helping residents access safer and better-quality living conditions.

Hopefully, this gives you another avenue for real estate investment in a growing market like Charlotte. See attached a map of some Opportunity Zone areas in Charlotte.