This is problematic for several reasons. It means no-one knows where housing developers hold interests in land and are seeking to develop. To fix land banking, the Government must enforce greater transparency in the land market. Second, create a mandatory register of land where developers hold Option Agreements. Put all that into the public domain for communities and councils to see clearly. And it will lead to a more complete answer to the question of who benefits from land being built on, and who benefits from sitting on land while it rises in value.
Excellent discussion — thanks for moving the debate on land forward with your recent Guardian article. Of course, if we implemented an annual land value tax LVT on all land — urban and rural — we would not need to know where the land banks are. Any potential purchaser would only want to take on the liability if they had an immediate use for the site and in addition they would deduct the LVT liability from their purchase price — so reducing the selling price of land and the cost of any new homes or other developments on the site.
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Notify me of new comments via email. Unlike the demand for discrete products that are fungible in nature, the inelasticity of the land market does not generally allow prices and consumption to adjust to relative demand and available supply. Furthermore, property titles consist of sets of separable but connected interests which, when held by parties disconnected from each other and from the land, leads to a variety of dysfunctional conditions.
Land banking offers an approach to resolving these market inefficiencies. Acquire and consolidate or aggregate vacant parcels through purchases, donations, or intergovernmental transfer from public foreclosure holdings. Clear Title. The evidence of ownership of real property. Title refers to holding the bundle of rights conveyed. Loading Comments Email Required Name Required Website. Using the California land-banking concept as an investment strategy is not a new idea.
It has been used by Governments, major corporations, conservatories, banks, trusts, and developers. Many well-known, and self-made billionaires whose names you have heard have made massive fortunes for themselves. They purchased large parcels of land in California near the edge of established areas. They held the land until it went up considerably in value and then sold it. President Donald J.
Trump and and Bob Hope are familiar names who have made fortunes for themselves. Large retailers such as Walmart, Costco, and Home Depot are known to purchase land long in advance of when it will be needed. This ensures that it will be available and affordable to them as needed. As you might imagine, these big companies have some of the best real estate acquisition teams. They study statistical population and commercial-growth patterns.
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