Land Banking Investment shifts to Rental Pool Investment

by emtboy9

Land Banking Investment shifts to Rental Pool Investment

         Land Banking Investment shifts to Rental Pool Investment

Prior to the recent recession, investors who participated in both US and Canadian Real Estate Land Banking opportunities had enjoyed years of good returns and profits.  As is the case with any form of investment, key investment Market Characteristics drives results.  In the decade that proceeded the current recession in States like Arizona and Texas and provinces like Alberta and Ontario, the Economic Indicators for Land Banking investment were absolutely ideal:

1998 – 2008 Land Banking Marketplace Characteristics

Positive Regional GDP indicators Sustained regional population growth Low  interest rates Low unemployment/strong employment opportunity Shortage of regional residential housing Residential housing building boom State/Provincial and Municipal governments were pro urban development Lending Institutions had very relaxed mortgage qualification rules High demand by Master Planned residential community builders for ideally located, rezoned, site plan approved undeveloped large acre plots of land Escalating residential home values Land Banking represents a shorter investment duration and higher yield   

Now however, the sheer magnitude current recession has all but completely overturned the exceptional marketplace characteristics that drove Land Banking Investment opportunity.   

2008 – 2012 Land Banking Marketplace Characteristics

Federal governments worldwide have intervened with economic support    Negative to flat Regional GDP indicators Flat population growth US Bank failures (2008 –Sept 2009 over 100 US Banks failed) Low interest rates Sub Prime lending scheme is dissolved Excess supply of regional residential housing driven by foreclosures Sharp decline in residential housing prices Lending institutions have strict mortgage

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