Monopoly has been a family favourite board game representing core principles in property investing for over 100 years. Anyone can pretend to be a high flying property tycoon while having fun playing the game. The famous board game can offer plenty of financial education and lessons that can be applied to everyday property investment. Below are eight valuable tips that can help you play a better game at Monopoly, but also help to teach you basic skills and fundamentals of the principles of real estate investing.
01) Always Have a Buffer
Just like in the real world, running out of cash to pay bills can lead to some stressful times. Selling off assets as a last resort should always be avoided by always having a cash buffer for any emergencies.
02) The Impatient will Always Lose
To win the property game, you must have a plan and be strategic. If you just buy every piece of real estate you land on, then you are setting yourself up for failure. Know when to buy and also know when to pass.
03) Cashflow is King
Focusing on cashflow will enable you to have a good chance to be the last one standing. Collecting as much rent as possible will help you win the game. Owning the best assets with the highest returns is key.
04) The Most Expensive Property is Not Always the Best
Owning expensive real estate such as Mayfair and Parklane does not necessarily mean these properties are the best assets to own. The costs of these properties are very high and sometimes forgotten because of the cashflow.
There is no use buying one property only and loading it up with houses and hotels. Usually a typical winner would spread out his or her properties throughout the board, to help increase chances of capturing multiple rents.
Negotiation techniques can help you get through the tough times. Monopoly teaches us the importance of being open and willing to work with others. There may be times you require a life-line from another player or even the bank.
07) Take Advantage of a Crisis
If one of your competitors is experiencing a cash crisis, it’s the perfect time to make a low-ball bid for that property you need to complete a colour group. Just like in the real world, a crisis is the best time to get a bargain.
08) Saving is for Losers
People can take tip one too far sometimes. Hoarding cash will result in a quick knock out from the game. You can only win if you have a decent property portfolio. Cash is safe, secure and very liquid, but the returns are low and you won’t receive the benefits of capital growth. Park your cash into property as soon as you can.