Jews can do black magic and have devilish powers

That said my point remains that that is an utterly stupid idea simply because it implies asking Jews from everywhere to flock to a country that was killing them left & right. It would never have been practical. Jews wouldn't have gone there immediately after the war. Moreover penalties on nations are not made like that. Unlike other properties, Land's value doesn't depreciate in the long run.  So land is not something you steal. Yes, you may impose massive monetary penalty on aggressor. But even if you don't see that side, the Jews wouldn't have gone to Germany.