Ateneo Professor on Entrepreneurship
Rizal Philippines
July 23, 2019
A former dean commented on my recent post that those business that cater to basic needs are not necessarily patok or stable. He discounted real estate because of the real estate crisis (debacle of 1997 due to subprime mortgages due to sins of investment bankers, bankers and their cahoots)
There are downsides to realty or subdivsion development. 1. It is a one shot deal. After the development and sale of Lot or House and Lot units, the business stops unless there is water system, or leasing of commercial units, or parking in the case of Ayala. So next time you develop, be sure you have units for leasing so that you have recurring income 2. You have to keep on looking for land and land is scarce and therefore prices spiral up. Land which were P20.00 before are now P2,000 per square meter.
I like the current business now memorial parks, there are recurring revenues afterwards: interment, funeral service memorial plans... On a single lot, you can have two interments, two funeral service and even more memorial plans
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment