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Monopoly sets the right parameters for property investment

188636_monopoliWe can learn a lot from the game of Monopoly, and in a neat way. Real estate investors across the spectrum can learn how properties can be leveraged just by going back to the root idea of Monopoly. If you were a smart player of this game, you must have followed techniques of creating multiple properties, forcing home shortages and so on.

 

The analogy is simple: the early childhood advice of creating multiple income streams actually boils down to buying multiple properties in the Real Estate market. I was going through an article by Pete Wargent where he discusses his own childhood love; Monopoly (what else you thought) and how it has laid the foundation for sound investment ideas in him.

Property Investment Monopoly Style

  • One must buy multiple properties spread over time.
  • One must buy in different locations to offset price fluctuations.
  • One must leverage the properties well.
  • One must also create house shortage for rivals by buying generously in ‘high demand’ areas.
  • One must shy away from expenses on depreciating assets.

You can read the full article here.

To sum it up

It is worthwhile to invest in various properties spread over time. It leverages you against fluctuations and also creates scope for strong, appreciable assets in times of share market volatility. I think that creating properties in various areas offsets the risk associated with property doldrums.  Also, forcing a house shortage by buying excessively can make life difficult for your competitors. Having said this, it is also important to fetch great deals (even if it takes time to materialize) and keep away from investing your own productive time in it. For the purpose, you can employ a buyer’s advocate who knows all about the job at hand.

I think we all agree on the leverage of multiple, diverse property holdings provide us with? I invite your opinions.