Property education is essential to your property investment success. You can increase your property education through books and mentors, but a more exciting way to learn about property investment is by playing Monopoly.
The game of Monopoly is an old family favourite. The game as we know it today, was created in 1935, but it was actually based on an earlier version called ‘The Landlords Game’ created in 1903.
The board game was intended as an educational tool, to explain the negative aspects of concentrating land in private monopolies, which is how our modern version got its name.
The game is as relevant today, as it was back then and it can teach us some effective lessons about property investment.
Lesson #1 – You can’t win the game without investing in property
Whenever a player lands on a property, they have the option to purchase it. When you own the land, you are paid rent every time a player lands on your property. You can increase your income by developing the land into houses or hotels, either through financing yourself or a bank loan.
You cannot win the game if you don’t invest in any property. If you don’t own property, you won’t have an income and if you don’t have an income, you have no way to pay rents when you land on other players property. You can collect a pay check whenever you pass go, but pretty soon you will run out of money and the game will be over for you.
This is the same in life. You need an income to pay your debts and a pay check will only get you so far. Investing in property is the best way to earn a high income and better yields come from property development. The sooner you buy property, the better your chances of winning the game of life.
Lesson #2 – You can’t buy everything in sight, you need a strategy
A monopoly is defined as ‘domination of a market by a single entity’. No matter how hard you try, you cannot hold a monopoly over the entire property market, because there are other players. The trick is to buy strategically.
Each property you land on has a value, rental rate and construction cost for development. Much like in the real property market, the property with a higher value has higher costs, but also earns the most rent.
Regardless of your plans to buy the best performing property in the game, you won’t always get the opportunity because another player may buy it first or you won’t be able to afford it. Remember you start with a limited amount of money and you cant afford to buy everything.
Transfer this to real life, and your winning strategy is to buy early, buy in places of high rental demand, develop your land, sell under-performing property, buy when the opportunity presents itself and pay off your debts as soon as possible.
There are many property strategies available when it comes to investing in property and the best strategy is the one that matches your personal circumstances and goals. Our team here at JR Prosperity Partners are experts in property investment and we can help you choose the right property for your goals. Contact us today if you would like to start your journey to financial freedom, on 1300 522 562 or email: firstname.lastname@example.org.