Vacantlanddeals Advices Land Investment on The Right Side of The Tracks
California voters approved a $9.95 Billion bond to build a high speed rail system from Sacramento to San Diego this past November. It can take a passenger from San Francisco to Los Angles is 2 hours 38 minutes with an estimated cost of fifty five dollars, or Sacramento to Los Angeles in 2 hours 17 minutes for fifty three dollars. The recent bond approval by voters initially allows up to 1 billion for local and regional rail upgrades that will connect to the future High Speed Train System (www.cahighspeedrail.ca.gov). State Law requires that construction can’t begin until matching funds from outside sources are committed. In addition, it is estimated that the Federal Funding will provide $10 to $12 billion or 25 to 33 percent of the costs.
This could be from the Passenger Rail Investment and Improvement Act passed by Congress in 2007. This can also be part of what President Elect Barak Obama’s administration has proposed as the “New Big Deal”. The California High Speed Rail Authority expects construction to begin by 2011. The incoming President, Congress, the California State Governor and Legislature and now state voters are all in approval, so there appears to be nothing to stop this train now other than the actual funds. With all these forces in approval it looks inevitable that the funds will be found by 2011. This will be one of the largest government projects over the next twelve years.
This yields investor opportunities in stocks affiliated with construction and real estate values near the future rail system. Many areas along the six hundred mile route currently have sparse populations and depend on the agricultural industry. One of the future rails stops is in Palmdale, California in Los Angeles County. This is an area with a population of over three hundred thousand and an abundance of available inexpensive land. It is an area that has shown considerable growth over the decades, and will grow with or without the rail system providing investment growth security for speculators. Lance Dorman of Vacantlanddeals.com said “Land investors need to be on the right side of the tracks when investing on the future”. This looks to be a ripe opportunity to buy land and wait, while land prices are currently low. Real estate land prices all over California have dropped from their recent highs in 2006, and prices will definitely rise over time.