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Some investors hope a housing bubble will burst

While many real estate investors continue to bet on the success of South Florida’s condominium boom, McCabe is putting together groups of investors ready to buy the minute the bubbly winds shift, and he says he already has dozens of investors on board and about $10 million in capital.

McCabe points to data that show Palm Beach County will see 10,000 new condo units in the next two and a half years, while Broward County will see 13,000. In Miami-Dade, 25,000 new units will be built by the end of 2007. These numbers show the hot Florida housing market will likely cool, reasons McCabe.

“We feel that there’s going to be a tremendous opportunity to buy these units when they are priced far below market value, hold on to them for a few years until the oversupply is absorbed, and then realize substantial gains when the appreciation returns in southeast Florida,” said McCabe.

McCabe’s investors have deeper pockets and longer time horizons than today’s small-time speculators, he says, and so they can afford to take a short-term hit and hold on to their properties for a long-term gain. McCabe also says he has heard from many more interested investors than he ever expected, including a number of overseas investors.

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