I am buying raw land in Florida which is on the rise. Are these land
prices high due to mostly growth or speculation? There is a 52 acre
parcel that I have a contract out on and have the option of backing
out. Are these land prices high and rising due to mostly growth or speculation?
I would hate to be caught in a situation like the tech stock market bubble.

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Request for Question Clarification by jbf777-ga on 27 Jun 2005 07:10 PDT

Hello,

I spoke to an expert in the area of land values in Florida, and he
says it can vary by location.  Can you tell me what area in Florida
you'd be looking at?

Thanks,

jbf777

Hello -

From the sources I've spoken with, including a professor at a college,
and several companies that deal in the selling of land in north,
central and south Florida, land prices are high very much due to
growth all over the state.  A representative from Florida Land Online
in central Florida says he feels it's about 80% due to growth and 20%
due to investment.  Although the amount of influence that growth has
on prices will vary by locale, Florida is indeed the fastest growing
state in the Union(1), and this is translating into higher prices in a
big way.  The rep went on to say that retiring baby boomers from North
Florida are moving south in a big way, gobbling up land in the
process.

Notwithstanding, investment is playing a role, at least in Southwest
Florida, according to a representative from Southwest Florida Land
Center, that deals with selling land in the Southwest.  The rep said
that investment may actually play a higher role in this locale, which
she says is the fastest growing portion of Florida.  She feels it's as
much as 60% investment vs. 40% actual growth in this area.

According to the 2004 University of Florida Land Market Report, found
at the following link, nonagricultural demand for land is driving
prices upward:

http://agbuscenter.ifas.ufl.edu/landuse/pdffiles/LUSE04.pdf

This has been the case since 2002, and quite possibly before that.



(1) Florida tops fastest-growing county list
http://www.sciencedaily.com/upi/?feed=TopNews&article=UPI-1-20050414-09581700-bc-us-census.xml


Companies consulted
----------------------------------------------------
1-941-916-2251
http://tponline.realty-wire.com/Users/8B941B74-E0EA-4F6E-8635-7B9A5A94FCB9/%7B5E65CA30-18A7-4C20-9151-4A893886B598%7D/Simple.asp

1-877-571-5263
http://www.jaxranchclub.com/

888-635-5263
Florida Land & Ranches
http://www.flland.net/contact.cfm

(813) 788-2759
http://www.floridalandonline.com/home.html


Select search Strategy:
florida land sales
<made calls>

Feel free to ask for any clarification on the research above.

Thank you,

jbf777
Researcher
Google Answers

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Request for Answer Clarification by pakr-ga on 28 Jun 2005 21:05 PDT

Dear Sir:

-does Dade city Florida constitute "southwest florida"?
-other than a fesability study and apprasial what can I research to
decide if I am getting into a prudent investment or a 'bubble'?

I realise that there is always risk in any investment, however I want
to minimise and manage this risk. I will be putting close to my life
savings for the down payment.

Thank you.

---

Clarification of Answer by jbf777-ga on 29 Jun 2005 12:05 PDT

Hello -

Dade City is considered to be central Florida.

I spoke to a rep from the Dade City Appraisers office,  who said the
entire county and state has experienced rapid growth and rapid
appreciation.  With low interest rates, and a booming population, he
said growth is probably accounting for 70% if not 80% of the price
increases.  He said if prices start to fall nationwide, this area
would probably be one of the last to feel it.

I also spoke to several Dade City real estate agents listed below. I
had them attribute a comparative percentage in their estimation as to
why prices are high.  All but two of them said that prices are high
due to actual growth.  Of the two, one of them said speculation
represented 70% of the growth, and the other, about 50%.

All (except for one or two that I didn't ask), feel the prices are
going nowhere but up in the near future, and one realtor advised
jumping at the opportunity to purchase land only *IF* it's "high and
dry" (hilly and NOT wet).  She advised calling the Assessor's office
to find out if that is the case with the property you're looking at. 
Another said that there is statistically about 2% availability when it
comes to land in the area.

Notwithstanding the above, if you are investing nearly all of your
life's savings, I would still investigate having some sort of outside
analysis done due to the enormity of the risk involved.  Please
remember that Google Answers is not an official substitute for
investment, financial, real estate, or related advice.

Appraiser's Office
http://appraiser.pescogov.com
352-521-4486

Assessor's Office recommends investigating the comprehensive growth
plan (comp plan) for the area you're looking into.  You can start at
the Zoning Department for this info.

Zoning Office
http://www.dadecityfl.com/planning.html



Sources
????????????????????
Britton & Associates Inc 
14150 6th Street Suite C, Dade City, FL 33525 
(352) 567-5155

Cahill Realty 
Proudly Serving Dade City 
(727) 862-4222 
(727) 847-0774 (fax) 
(866) 611-4300 (toll-free) Email: Pat Cahill@cahillrealestate.com

Century 21 Gavish Realty 
Dade City, FL 33523 
(352) 799-8888 

Dade City Realty 
37911 Heather Place, Dade City, FL 33525 
(352) 567-5606 

Kelly Realty & Associates Inc 
37206 Clinton Avenue, Dade City, FL 33525 
(352) 567-0099 
80/20 Growth/Spec

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Clarification of Answer by jbf777-ga on 29 Jun 2005 12:07 PDT

Appraiser's Office link repost:
http://appraiser.pescogov.com

352-521-4486