The Housing Bubble 2: They Are Buying Swampland In Florida Again

The Housing Bubble 2: They Are Buying Swampland In Florida Again

Some Floridians have commented that todays RE fervor exceeds the mania of the 1920's. This story bears that out. "More than 100 people who have sunk tens of thousands of dollars into northern Palm Beach County swampland may never realize their investment because building on the land is nearly impossible, according to a county report."

"In February, Rebecca Gordon of Wellington bought 2-plus acres of northern Palm Beach County swampland for $88,000. But lately, Gordon's had second thoughts: 'Now it's causing me some concern.' Gordon knew the land was under water, but she thought roads would be paved and drainage added. However, there are no plans in place for either, and many doubt there ever will be."

"The Army Corps of Engineers in January responded to a county inquiry about the land purchases, writing that approval of building permits would be 'highly controversial.' Even if permits were issued, the sensitive nature of the land would require buyers to go through wetland mitigation, which means buying another parcel of wetlands in another area for preservation. That could cost a landowner up to $72,000, according to the county."

"Over the past year, more than 120 people have spent tens of thousands of dollars an acre on Palm Beach County's Pal-Mar land. Robert Berman, who has bought and sold Pal-Mar property on behalf of both the coalition and himself, admits he's 'made a killing' by pocketing between $2 million and $3 million selling about 60 parcels over the last year."

"'It was clearly a very selfish motivation,' Berman said. 'I wanted to keep property values up. I was doing it for spite to begin with, but it's turned into an investment.'"

posted by Ben Jones http://www.thehousingbubble2.blogspot.com