Eminent Domain in Long Branch
Today’s Wall Street Journal has an article about the issue of eminent domain in Long Branch. Although on principal it seems like many of the home owners that are being forced to sell are getting shafted by the city, I can’t help but think in the long run they are better off. If we are near the peak of a housing bubble, and I think we are, those condos that are going up along the beach in Long Branch are certainly going to be worth a lot less two or three years from now than they are now. In short, the residents that are being forced out of there houses might want to quietly take the cash and gloat a few years from now that the $650,000 condo that was built where they used to live is only worth $350,000.
Snip…
“None of the MTOTSA [Acronym for new Long Branch condos] homeowners I spoke with, who are mostly retired blue-collar workers, felt they would be able to manage the costs of a owning a luxury condo once the initial period ends. And there's a chance if they accept the swap offer, and home prices flatten out or decline in Monmouth County – which has seen some of the biggest home-price gains in the nation over the last five years – they may end up owning a property worth far less should they need to sell.”
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Snip…
“None of the MTOTSA [Acronym for new Long Branch condos] homeowners I spoke with, who are mostly retired blue-collar workers, felt they would be able to manage the costs of a owning a luxury condo once the initial period ends. And there's a chance if they accept the swap offer, and home prices flatten out or decline in Monmouth County – which has seen some of the biggest home-price gains in the nation over the last five years – they may end up owning a property worth far less should they need to sell.”
More...
May require subscription.
posted by Little_Silvered at 7:00 PM
2 Comments:
Just an FYI,
The city and developer have no plans to pay "current market value" for those properties. Because the area has been declared blighted, they will argue that the properties' value isn't what the current market says, because the area is so poorly kept.
The city will probably lose in court on those that get appealed, but it's a long process and not everyone will be able to take it.
Builders have raised the bar, they have made thoes blighted properties more valuable let them pay what they must to complete there project !
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