As I am taking consistent losses in my main sector of business I have expanded to Real Estate now too in hopes of having a consistent income. I find the Real Estate game to be very simplistic, in the real world, you may have a 100% occupancy rate but you will still have some that may delay payment or you may need to evict people. These dynamics are missing from the game as you it is all down to your occupancy rate. I do like how the market rate varies but it ignores the human side of things which is basically everyone that is renting your space. In any case, this episode really showed how the bad start has made it like I am falling behind in the rat race.
Lessons learned in this episode might help you with falling behind in the rat race:
1. Real Estate is a very good way to have income
You can argue all day how much % to set your price with relation to the market, but nobody will argue that Real Estate is one of the best ways to have fixed income and if you joined the game early enough to get pretty decent returns on your land.
2. Buy land first, then build
As the game progresses, the price of land increases as well. Hence why Real Estate is such a good business especially when you start at 1900 (I think). By buying land first, you get to build your building there without increasing the value of the neighbouring tiles. Try to experiment and see, buy a 6×6 and construct things vs simply constructing things by buying the land each time you build. This is also one trick to automatically increase your own land and building’s value – have a plot you bought at the same price which now increases due to surrounding buildings.
3. Don’t underestimate competitors
When AI is fixed into an industry, it gets very hard to want to make a living off that industry when they have become leaders. You need to have a reliable source of income to compete as the competition will often result in you having to compromise something – usually your profit.
What do you think? Leave a comment below.