I call the current expansion the Viagra Cycle,” says Carlos Rosso. “We just want it to last a little longer.”
Carlos builds condos in Florida – Miami to be precise. He has 2,000 condos in the works.
In the real estate bust, Miami condo prices plunged 60%. Today, condo prices are “already back near peak levels in Miami’s most desirable areas,” according to Rosso.
That is an astonishing move – a 100% gain in prices – as anything down 50% has to go up by 100% to get back to where it was.
Real estate in Miami in particular and Florida in general, is booming.
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If you’re a longtime reader of mine, you know that I’ve been writing aboutbuying Florida real estate since the bottom. I don’t know of many analysts that were more optimistic on Florida real estate than me.
I am putting my money where my mouth is as well…
Even with the big moves higher, I am still buying right now. Right now, I have more of my financial assets in Florida real estate deals than I do in stocks. (As you know, I like stocks now.)
Why am I so optimistic about Florida real estate?
There are two big reasons:
“Give me three reasons why [this boom] will continue,” somebody asked Marc Sarnoff, the Miami City Commissioner. He answered “Maduro, Kirchner, and de Blasio.”
He was referring to the “capitalist-bashing regimes in Venezuela, Argentina, and New York,” according to The Economist.
Latin Americans will continue to put money into South Florida. And wealthy New Yorkers will continue to flee de Blasio to a place that treats them better. These two things will not change.
Therefore, even with the big moves higher recently, I expect the good times will continue in Florida real estate…
Carlos, your “Viagra Cycle” is not in jeopardy…
Good investing,
Steve
