Monopoly is far more than your humble boardgame, so why not whip it out this weekend and teach your kids (and yourself!) these 5 tips to become wise property investors and move yourself along the board from Old Kent Road to the lavish hotels of Mayfair.
1. Always Keep Cash on Hand
In the real world you can’t get away with making dodgy deals when you run out of cash like swapping a get out of jail free card and a property to pay someone rent. Ensuring you have some cash on hand or stashed away for a rainy day can really help you whenever you pick up a unexpected Community Chest card that insists you owe the hospital $200. Having funds set aside will act as a cushion to ensure that unexpected payments don’t put you out of pocket.
2. Credit your way out
The downside of reality plays on hefty loans and credit cards – definitely not something you want weighing on your shoulders! Monopoly even teaches us this when passing go and instantly having to pay it to the player next to you, because you borrowed money to pay for that lavish house in
Peppermint Grove Parklane.
3. Buying big is not always the best investment
Everyone always wants to land on Mayfair, the most legendary (and expensive) property on the whole board. However, you’ll often find that this is not always the wisest investment. With soaring rent prices and little chance that the other players will actually land on the big blue square, why not settle for something that is not quite so flash but can reap you great rewards in the long run. Are your eyes bigger than your wallet? Buying well placed smaller properties that are likely to increase in value is a wise investment that will eventually pay off, you may move up from Old Kent Road to somewhere more glamorous like Leicester square if you invest wisely.
4. Seize the Window of Opportunity
Have you just noticed that Regent street has considerable traffic and no one has snatched it up yet? Don’t waste time thinking about “what if I land on something better.” Your first choice is most likely the right one, so take a leap of faith and slap down your remaining purple paper bills before the next eager
investor player snatches Trafalgar square away from you!
5. Negotiation Skills
Monopoly teaches us just how important it is to be willing and open to work with others. If you have the ability to charm the other players it’s likely you will end up in a favourable position. In the real world treating others with respect and being assertive in the way you conduct yourself are really beneficial negotiation techniques.When it comes to finding the right home loan you should talk with more than one lender before you make a choice to see what options are out there- also doing simple things like asking for a discount can save you money.
6. Take Calculated Risks
Are you considering a hotel purchase on Oxford street but not sure if it’s the right investment for you? Consider the worst scenario: someone else snatches your beacon of hope at an successful hotel portfolio in the city. Best scenario could be that you purchase the spot and add to your collection of empires and receive generous rewards. It’s important to weigh all the possible outcomes against each other. Remember You Only Live Once!
7. Play by the Rules
Everyone seems to have their own quirky set of rules for Monopoly, for example; whoever lands on Free Parking is allowed to collect the taxes that other players have paid (Side note: this is not a real rule.) However, you will often find that the rules you play by are not consistent with the laws of the game. To avoid heated arguments both on and off the board ensure that you do your research when you look at purchasing your own investment property.
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