That’s SRAP! Go Zone cash back scheme coming to an end in US
The SRAP (Small Rental Assistance Program) set up by the US government to encourage foreign investment in property in the Mississippi region following the devastation of hurricanes Katrina and Rita in 2005 will soon be coming to an end – meaning the last chance for investors to secure the very best investment.
Post-hurricanes, the US government recognised that they needed the help of investors from overseas to rebuild this successful region, with a great immediate demand for housing for those displaced and living in FEMA trailers. The setting up of SRAP meant that foreign investors could be incentivised not only with a 5 year forgivable loan which entitles them to interest free repayments with no penalties and within a staggered schedule, but also a $73,000 cash back when they commit to the scheme.
The US government had allocated a set amount of money to this cash back scheme and it is this that will soon be coming to an end. This is therefore the best time to invest in the Go (Gulf Opportunity) Zone as there have been no announcements by the US government of the cash back scheme being reignited after this date. The scheme does have certain limitations that must be met, however, for example investors need to meet credit checks and criminal record checks as well as rents within the scheme being set within certain caps, but this is an excellent opportunity that not only helps local communities but also a firm investment choice for the overseas buyer.
Bayside Park is one project that qualifies under SRAP and is therefore soon coming to the end of its government cash back scheme. It is here that sturdy and energy efficient homes are being built within the Go Zone in Biloxi and excellent rental returns are predicted. Reservations under the SRAP end on 22nd October 2008 and therefore to qualify for consideration to get $73,000 cash back when investing it is wise to do soon. Property Direct America Principal Danny Silver agrees,
“SRAP has been a highly successful scheme for investors in the Go Zone as it has added to the excellent incentives already on offer in a region that is in desperate need of permanent housing. I would suggest that anyone looking to invest in the project should do so before SRAP ends as, although we hope the government will reintroduce the scheme in 2009, there has so far not been official word on this.”
Although the cash back scheme will be ending shortly, 90% loan to value mortgages are still available as well as 50% Tax Depreciation from the Federal IRS (Internal Revenue Service), making this an excellent investment project. Prices in Bayside Park start at £88,000/ $159,900 and for more information on properties available as well as SRAP, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.