With so many short sales in South Florida it makes you wonder how has the downturn in the market affected the luxury home market.
There is a part of our county that you all know as Palm Beach Island. Palm Beach island is home to the worlds' biggest billionaires and movie stars. The Kennedy's even had a nuclear resistant bunker built out off the island on Peanut Island. You can take boat rides over there to see it and the Maritime museum. Donald Trump's Mara Lago is here on the island. Donald Trump and his X wife Ivana Trump have properties on the island. Jimmy Buffet and Rod Stewart both have mansions on the island.
Here is the famous Breakers Hotel on Palm Beach Island where many rich and famous people stay. This hotel is our favorite here in Palm Beach County. It is right on the beach and is listed as one of the world's top 10 beaches according to travel T.V.
This island of Palm Beach has been immune against the downturn in the market. The one area that was still in demand was the multi million dollar properties on Palm Beach Island. This area became known as bullet proof.There are only a little over 10,000 people who live on the island and only 5800 households.
Well, now it looks like a bullet may have pierced this market with the fraud permeated by Madoff on this island. With the billions of dollars lost with Madoff here on the island it remains to be seen if this is going to affect the property values on the island. I have a hunch it will.
There are some hedge fund managers that own mansions on the island and depending on how much they have lost will determine if they are going to have a fire sale on their mansions. How would you like to pick up a mansion worth $ 9 Million for about $7 million?
The other day someone went into the Madoff mansion and stole a very valuable statue of two copper lifeguards sitting on a bench valued at $10,000 from his mansion worth 9.5 Million dollars. Currently Madoff is under house arrest in his New York $7 million dollar apartment. There is a lot of anger around here towards Madoff.
Could this all mean that we may get some multi million dollar short sales on the island? Most of these people pay cash for their properties but you never know! For instance back in the spring of this year Randolf's Hearst's widow could no longer pay for the upkeep of their $30 million dollar mansion and she started to take out large loans just to pay her taxes and upkeep. The Hearst mansion was sold on the courthouse auction block for $22 million dollars.
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Copyright © 2008 By Katerina Gasset, All Rights Reserved.*Palm Beach Florida Luxury Homes- Short Sales In The Luxury Market?*
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