Father Sez

From and to parents - parental advice to our children on personal financial management and life.
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Posts Tagged ‘opportunities in real estate’

Great Opportunities for the creative and the enterprising

Friday, February 27th, 2009

This morning I read a post by Bigger Pockets that talked about the opportunities in turning distressed properties around with different businesses. 

This is a thought I have long harboured in my mind. Malaysia still has a fair number of buildings lying empty and abandoned from the days of the Asian Financial Crisis. That was more than 10 years ago! And quite a number of factories have since gone vacant when we lost our competitive edge in manufacturing to Vietnam, Cambodia and China.

And now, with the present miserable economic climate, many more buildings are going to go empty. Buildings can go vacant or abandoned for any number of reasons. They can be unsold, or the businesses they were meant for fail to take off, or the owners go bust due to other problems etc.  

There is a building not far from where we live, which was custom built as a wet market. It was empty for several years. One enterprising guy seems to have leased the building and it is now a thriving sea food restaurant.  Another nearby factory building has been converted to an indoor futsal and badminton court, and appears to be doing well. 

Like Bigger Pockets pointed out, even if the unemployment rate is 10% (Malaysia’s rate is much lower, apparently), we should focus on the 90% who are employed and see what kind of a business can be created to serve this market. And the chances are that we should get fairly good deal on the vacant building. I also believe the Council Authorities will also do their bit. After all which District Council wants these ugly empty buildings on their watch? 

abandoned2.jpg

Abandoned buildings near Lukut

Last week, I saw this row of shophouses about 10 kms from one of our seaside resorts. I last saw them about 3 or 4 years ago and they were empty then. And they are still empty now.  

abandoned-shophouses.jpg

A closer view. Quite a lot of real estate for the taking. The question is what should we take it for?

I wonder when someone will come up with some creative idea for some new business there. A private school or a trade school perhaps.  An eatery, maybe?  Something that when we all finally get to see, will make us all go, “why didn’t I think of that!!!”

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