Rebuilding the American Dream

The summer of 2005 saw the dreams of hundreds of thousands of American people destroyed when Hurricanes Katrina and Rita made landfall along the Gulf Coast. The hurricanes wrecked homes, stole lives and virtually wiped out entire communities in Alabama, Louisiana and Mississippi.

The area of devastation caused by the hurricanes spanned seven states and covered over 90,000 square miles – which, to put it in perspective is an area almost the size of the entire United Kingdom.

Over 1,800 lives were lost, over 700 people are still listed as 'missing', over 70,000 homes were destroyed and the lives of an estimated three million people who were directly affected by the hurricanes were changed forever.

To this day the massive, unprecedented and almost incomprehensible regeneration project to reconstruct this region and rebuild peoples lives, hopes and dreams is ongoing apace.

The entire region affected most heavily by the hurricanes was quickly dubbed the 'GO Zone' by the American government - this is an acronym for Gulf Opportunity Zone and it represents part of America where today there is an inimitable and unique regeneration and investment opportunity, and where thousands of people are both actively and passively involved in reconstructing homes, businesses, prospects and lives.

To kick start the rebuilding of communities most seriously affected by the hurricanes, the American government immediately committed to an investment of over $6 billion via the Federal Emergency Management Agency's Individuals and Households Program to go directly to the people. They then added a further $51.8 billion for relief for the entire region within days of the devastation and further to this, President Bush joined with former President Clinton in a nationwide fund-raising campaign. Alongside all of these efforts the American government rapidly formulated and enacted 'The Gulf Opportunity (GO) Zone Act of 2005.'

The Government is not only regenerating the area – but vastly improving the area. In the Mississippi area – and in particular Biloxi – they have added 14 new casino’s to the existing 11, (and since Christmas have taken over from Atlantic City and only surpasses by Vegas), bringing in a further 40.000 jobs. They have updated; rebuilt and expanded the Naval base and shipyards; the Space centre and the SeeBee base and attracted over 20 top conglomerates to the area and created another 100.000 jobs.

This act continues to offer significant financial advantages to those who directly assist with investment towards the rebuilding of homes in the hurricane affected areas.

Brad Pitt is one of the highest profile and most prolific and active investors in the GO Zone. He is committed to helping communities rebuild and has so far invested over $5 million of his own money specifically into the development of eco friendly, energy efficient homes. He is seen as a leading figure highlighting the plight of the people and communities affected as well as the positive work that is being undertaken to help these people - he is also showing how individuals from around the world can get involved and also personally benefit as well.

Danny Silver, Director of Property Direct America explains the opportunity: “take the Mississippi county of Hancock as an example of an area included within the GO Zone where there is opportunity to assist with regeneration and reap a significant investment advantage. In the city of Biloxi there exists an opportunity for investors to directly assist with the regeneration of a devastated community. Biloxi residents require accommodation, and the real estate development companies constructing homes in the city require funding.

The American government has created a series of incentives to encourage investors to purchase homes for subsequent rental to Biloxi's citizens. In return for their investment commitment they naturally enjoy the benefits of home ownership as well as a rental income, but they also benefit from having 50% of the cost of the property's construction deducted from their tax liability in the first year, they also get to enjoy certain "cash back" incentives as well as the ability to purchase 2 properties effectively for the price of 1 and a half. What's more, investors are able to buy-in at below market value and pay lower than normal property taxes on their GO Zone investment purchase.”

One of the real estate developments in the Biloxi area that is attracting conscientious as well as considerable interest is Bayside Park. Following on from Brad Pitt's lead in funding the construction of eco friendly and energy efficient homes, Bayside Park's developers are following the same model with their 75% recycled steel frame homes which are both environmentally friendly and highly energy efficient.

Investors attracted to Bayside Park not only benefit from the above detailed advantages as outlined by Danny Silver, they also know that they are helping to house citizens in 'green' homes that are affordable to mange and run. Furthermore, Bayside Park is being constructed on government subsidised land giving investors an even greater saving on the price that they are able to buy in at, they can tie in with the government rental programme as well so that they can be hands off from the ongoing letting of their property, and up to 70% mortgages are available on these particular properties.

This opportunity is one that makes both moral and financial sense. The opportunity runs until the end of 2008, therefore if you want to find out more about how you can help and how you can prosper you need to act quickly.

For more information, visit propertydirectamerica.com.