In order to encourage economic growth and reconstruction of damaged area
, the U.S. Administration passed a Gulf Opportunity Zone Act in 2005 after the severe destruction caused by hurricane Katrina. The Gulf Opportunity Zone includes parts of Mississippi, Alabama and Louisiana. This act was formulated by the US Congress to offer tax and other financial incentives to corporations that participated in the process of rebuilding of the devastated area.
GO Zone Real Estate Investment is a continuation of the numerous stipulations laid down in the Katrina Emergency Tax Relief Act of 2005 also known as KETRA. This plan aims to benefit victims of hurricane destruction and also the tax payers who participated in the renewal of the region. The GO Zone Real Estate Investment extended its hand of help for businesses and real estate companies who got affected by hurricane. This initiative has resulted in surge in real-estate property demand, in economic investment and in job creation.
An important part of GO Zone real estate investment targets at construction of casino barges and many other building sites that were destroyed after Katrina. Some of the advantages of GO Zone Real Estate Investment initiative are:
1.Opportunities in real-estate: many developers now offer 5% refinancing option and low down payment along with small rental assistance for homes of any kind.
2.Casino area investment opportunities: From Bayside Park to casino area of Biloxi there has been record property appraisal that is a result of GO Zone Real Estate Investment. Extensive building has encouraged growth of this important area with investors developing new properties.
3.Higher revenue: Due to expansion and upgradation of the properties, higher revenues have been reported making the regions of Biloxi, Mississippi and New Orleans among the top ten highest generators of gambling revenue across the country.
4.Rental Market demand: An increasing demand in the rental housing units has been due to GO Zone Real Estate Investment initiative, giving opportunity to the investors.
5.Growth Area including casinos: Factors such as continuous expansion of casinos, expansion of defense industry has led to the real-estate boom.