Should I hold off or invest in a QOF?
That's hard to say whether high interest rates will have a positive or negative -- or any -- effect on opportunity zone (OZ) investing. From one perspective, higher interest rates will increase the cost of debt, which will make OZ projects more difficult to construct. But a higher cost of capital also makes deferral of tax payments more attractive.
Evaluate your investment in light of interest rates. QOZ will only make a good investment great; it won't make a bad investment good. Therefore, if the investment works without the QOZ benefits, you should still move ahead.
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