Community Bank of South Florida Inc (fka CBKS)

[vpagano]

I just realized I had a few Twitter connections from south Florida and their comments today intrigued me about the real estate recovery down there.

"I am involved in transactions where south Florida oceanfront condo owners who bought at peak in 06,07 are selling for 40-50% gains"

That's some serious rebounding.

"huge inflows into south Florida real estate from Europe, Venezuela, etc. real estate is a store of value, no return necessary"

Zero interest rate environment / distrust of government pushes the demand for real estate. We saw Asian buyers pump up the Canadian housing market (that bubble will pop eventually).

"SF oceanfront has its own dynamics, economics (cap rates) do not apply....hard to analyze"

While this sure can suck when the bottom drops out, such uniqueness also juices values on the upswing in a recovery.

Anyway, just explaining my rationale that even though I can't afford to invest in real estate, I'm happy buying derivative plays of banks for 50% of BV

-Pagz