FINANCIAL INCENTIVES:

There are more than 100,000 people are still living in temporary FEMA trailers in areas affected by Hurricane Katrina. As a result, the demand for permanent, affordable housing has caused the Federal Government to step in.

In 2005, President Bush signed the Gulf Opportunity Zone Act, offering substantial tax incentives to individuals and businesses investing in real estate located in areas heavily damaged by Hurricane Katrina. In addition, casinos are now allowed to be built on land. 22 Vegas-style casinos are either already in operation or being built, and they are drawing even more people to the region. Employees are driving well over an hour each way to go to work simply because they have nowhere to live that is close to the casinos.

Investors may qualify for the following two options on each purchased property.

Claim an additional first-year depreciation deduction equal to 50% of the cost of new property investments made in the Zone.

By financing through a special class of tax-exempt private activity bonds called GO Zone Bonds, investors buying residential rental property can enjoy a substantial interest rate discount.

- It is recommended that you hold the property for 3 to 5 years for optimum results.
- Estimated annual net cash-flow of $1,500 after mortgage payments, property management fees, real   estate taxes, and insurance.
- Reduction in Windstorm insurance premiums of up to 55% for quality of construction.
- Current estimated annual appreciation: 10%-15%.