Will New York’s new tax free zones and grants for new business startups spur a real estate boom in the Northeast?
Governor Cuomo has been heralding the passage of new legislation designed to create new tax free zones around SUNY campuses throughout the state of New York. In addition to the tax free zones, legislation will provide more funding and grants for new businesses.
The goal is to reduce New York’s notorious reputation for high taxes, which has caused many to flee with their wealth as a foreclosure back log made its way through the area. Many laughed at the plan and called it outrageous, but the same concept has clearly been successful around the globe. Dubai, Belize and the Cayman Islands have already used similar tactics with pleasant results.
The media has already picked up on a 7.3% hiring spike in the Boston and New York area for IT and digital media professionals, which is a good sign. New business creation and tax free income zones, along with tens of millions in venture capital being plowed into new ventures, could certainly boost the local economy.
Buying, converting and leasing housing in these zones will absolutely be a part of this growth. Real estate investing professionals and firms could certainly find big opportunities for quick flips and significant tax free returns, or even potentially tax free cash flow and wealth building for the next 10 years.
The appeal to invest back home for many New York real estate investing pros may also ease competition in other parts of the country as well.
However, before heading to New York to partake in the potential real estate boom, make sure you have your exit strategy planned out.