Saturday, May 21, 2016

Identifying Local Opportunities

1.     2016 could be a down year for South Florida's economy


The article talks about the potentially negative outlook of South Florida’s economy for 2016. Over the past few years, south Florida’s economy has been increasing and providing more jobs and opportunities for its’ residents. Small businesses, construction development and tourism seem to be the main blows that south Florida will take this year. Although real estate won’t seem to stay stagnant, it seems like that won’t be enough to push south Florida on the upward path like previous years.

The problem that is leading to the stagnant path for south Florida seems to be coming from the strength of the U.S. dollar on the global scale. Many foreigners that visit south Florida to purchase bulk loads of merchandise to ship back to their relative countries can’t take advantage with the strength of the dollar. Similarly, tourism is going to decline since visiting the south Florida attractions and all its expenditures will have a higher cost than previous years.

I believe that small business owners and the departments of the cities in south Florida will have the problem here. Tourists and foreign merchants won’t visit or purchase as much in the area which overall affects the business owners and cities and their likelihood to increase over previous years’ revenue.

2.     South Florida housing market barrels toward unaffordability


This story explained the recent housing market in South Florida. Unfortunately, for first time home buyers, it seems like it will be tougher to buy real estate since most of the market has increase by about 9% - 11% but wages in these areas have only increased by about 4%. Although this is compared to South Florida’s “historic standards”, it is still an unfortunate increase for real estate making it less affordable.

I believe the problem resides with the housing market and it continuous rise, therefore making it harder for families to purchase better suited homes versus something that’s the same as their current situation, for some it would be their first real estate purchase and can be challenging.

I believe that the buyers will have the problem here. Obviously, they’re trying to buy into the market but can’t seem to find wiggle room to make their real estate purchase more affordable. Instead, real estate owners and property holders will keep purchasing and investing rather than families who are looking for their new home.


3.     Miami-Dade’s problem: too few large businesses


The article focused on a problem Miami-Dade has with businesses. Over the last decade, the county has seen a tremendous spike in small business development but on the other hand, large business development has plummeted. The notion that small businesses are the corner stone of America is the main reason for the influx in the county, as well as the rise of entrepreneurs and self-employed individuals. Large businesses are also crucial since they can usually offer better benefits and higher wages.

The problem in this article is the spike of small businesses. Of course it’s important to have them in the county and investing in our local economy but the more than open up, the broader the competition will be. Large businesses again will help increase wages and benefits throughout the local economy and allowing us to invest more money within it.

I believe the county of Miami-Dade has the problem here. The small businesses will stay afloat and large businesses will find new homes but the investments and revenue generated by the larger businesses will produce a deeper blow to the local economy than the parted revenue small businesses will create.

4.     Some local homes stuck for years in foreclosure limbo


The article explained the issue of foreclosed homes in the Orlando area and the tendency for them to be stuck in the “foreclosure limbo.” It directed the attention to a special case of a family that had gotten their home foreclosed in 2007 but through the judicial process in Florida and the backlogged properties waiting to go through the same process, the family has been able to stay in their home for nearly 5 years. This one case represents the issues with foreclosed homes within judicial states throughout the nation.

I think the problem here can be split between the economy and the states methods of handling these foreclosures. Obviously, throughout the recession of 2007 and 2008, homes were being foreclosed left and right but there were still states that dealt with the evictions and homeowners in a timely manner. According to the article, nonjudicial states average around 6 months with a home repossession but judicial states like Florida on the other hand average around 15 months.

The problem here I think falls back to the states that will end up dealing with the homeowners and courts that take 15 months on average to process there repossessions.

5.     Study: U.S. falls behind in clean-energy investment


This article is about America falling behind on clean-energy investment. Where at one time America was a leading investor for this specific kind of energy development, now many other nations have taken initiative to do the same and have surpassed America. One of the nations that is noteworthy is China who had a substantial growth within 5 years. It depicts the lack of investment America has had in this renewable resource over other nations.

I believe there isn’t much to this problem except for the lack of investment the American government has had versus the rest of the nations that surpassed in this new study. Some of these other nations just seem to have increased their investment towards these new methods and directed a lot more attention in providing the needed assets to improve their overall contribution to the planet.


I think America will have the overall problem here along with the renewable resource investors since they haven’t been providing as much over the past few years. These new methods can decrease our contribution to climate change occurring but also create new jobs throughout the nation.

3 comments:

  1. Hey Sergio,

    I like how you used the area of South Florida to identify local opportunities. I'm from down south, and I believe there's a vast amount of untapped potential for entrepreneurs down there. I especially liked number two -- the housing market in South Florida is very turbulent, as affordable housing is either incredibly inadequate or non-existent, and the luxury housing market is too rich. There's opportunity there for investors that want to establish a market for housing at realistic rates. Great job, Sergio!

    -Jared

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  2. Great articles. Although I do not live in South Florida, I can relate to your second article. I am a first time hopeful buyer, but the process has been excrutiating. The real estate market in my hometown has also increased and it is making it unaffordable to live in decent areas. I have been stuck in bidding wars with plenty of other hopeful buyers.

    Your last article about America lacking in renewable energy investments is so true. As a country, I do not think we believe in it, which is causing us to fall behind many other countries. I think we really need to get on board as a whole ASAP, otherwise future generations will definitely feel the pain of our ignorance.

    Heidi

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  3. Hey Sergio,

    I found all of your articles from Miami and South Florida very interesting. Being from Orlando, I don’t hear much about what issues South Florida is facing and am happy to hear Orlando isn’t the only city facing these issues. Your article about the dollar strengthening is definitely an unmet need I can relate too. I have heard many tourists complaining about how high prices have been because of it and hope it wont have a long-term impact on the economy of Florida.

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