The CASHFLOW+ debate...Generally, most CF+ IPs are usually found in "crap" locations

[CHAOS]

We have considered the risks of option A. We can support the NG (but it does play on your mind what else you could do with the $). The prop we are thinking of is in original but solid condition and we can manufacture equity if for some reason market stopped going up at the moment. Plan is to sell off to pay down an IP that we wish to use as a weekender.

Option 2 is safer and no loss of $ each week. There is no certainty of rents increasing each year to put extra $ in the pocket.

 

[D.T.]

We have considered the risks of option A. We can support the NG (but it does play on your mind what else you could do with the $). The prop we are thinking of is in original but solid condition and we can manufacture equity if for some reason market stopped going up at the moment. Plan is to sell off to pay down an IP that we wish to use as a weekender.

Option 2 is safer and no loss of $ each week. There is no certainty of rents increasing each year to put extra $ in the pocket.

How many of type A can you buy vs how many of type B?

And, thinking next move ahead like in chess, what/how do you buy next year?

 

[CHAOS]

I think we can buy one of option A now and probably 4 of option B as I come across them. Servicibility will be better with purchasing B's I think. I suspect we may run out of equity before service and don't want to touch our buffer.

 

[skater]

If you have a choice then which option is better? Eg purchase 1x NG ip near cbd with good cg v 3-4 sub 200k 7% ip with low growth? Option a costs $300pw but in 18mths you have extra 100k equity. Option b costs 0 and no growth in18 mths.

That CG in 18mths is not guaranteed on option A

How do you know that option B will give no growth & no rental rises? I've got a portfolio of option B's. Quite a few of them. My LVR is not high and the deposit for each has come from equity in another. How did that happen with no growth?

 

[Tonibell]

Basically it comes down to your investment strategy of what you want to achieve, what your financial situation is like, what is your risk, what kind of investor you are passive or active (how much time you have), etc....
I think we all played the Monopoly game so if you take that as an example it should help you with your strategy I hope...
I like to buy below or at average for the suburb that most people can rent in tough times too, where 30% of average male earnings would suffice for the rent... So like in monopoly if you start buying average houses, after 4 houses you could buy or upgrade to a better one. The choice is yours based on the strategy that works for you.
But in the end I too believe that capital growth makes you rich if your goal is never to sell, right? Good luck with your strategy!

So you go after the cheap sets in Monopoly - so you can afford the houses ? Get an house on Mayfair early and you are headed for a quick win.

 

[D.T.]

So you go after the cheap sets in Monopoly - so you can afford the houses ? Get an house on Mayfair early and you are headed for a quick win.

But no one ever lands on my Mayfair

 

[bez23]

4 houses 1 hotel in monopoly. But the hotel in our world is probably a CIP. And houses being good cashflow houses . harder to swap 1 neg cashflow house in a good area for a hotel.

 

[CHAOS]

Hi skater you are correct the cg on a is not guaranteed. I am not against option b but do not know which path will serve us better. Looks like one of the b's is off the table. It has an offer that has not been accepted yet but the agent does not want to take us through. Different story if offer was accepted.

Tonibell I resonate with what you say also. I always bought old kent rd and it's neighbour. I never understood why others wanted Mayfair. Being raised low ses and with a poor mentality instilled since a young age is hard to overcome. It can make you feel unworthy of a more expensive house so you choose the cheapest.

I am however trying to look at this from the goal perspective. We would like to pay down our weekender. It will take 10 years of savings from payg to achieve. Would like to speed up the process.

 

[CHAOS]

4 houses 1 hotel in monopoly. But the hotel in our world is probably a CIP. And houses being good cashflow houses . harder to swap 1 neg cashflow house in a good area for a hotel.

What memories you are bringing up. I recall upgrading to hotels.

Thanks to op for this thread.

 

[Dazz]

4 houses 1 hotel in monopoly.

Nope.....this **** was cleared up years ago on this forum.

1 hotel equals 5 houses.....go look up the Monopoly title deeds.

To buy a hotel, you need to swap the 4 houses currently on the property plus chip in the cash equivalent of another house before the Bank allows you to have a hotel.

The only real mystery is, why do the Parker boys only allow room for 3 houses at the top of each lot. The 4th house is always hanging over the edge somewhere.

Becomes a huge problem when you are developing Pall Mall, and you buy the 4th house and you are forced to decide whether you want your house dumped into the electric company or falling into Jail. Get it right Parker boys !!

 

[bez23]

Nope.....this **** was cleared up years ago on this forum.

1 hotel equals 5 houses.....go look up the Monopoly title deeds.

To buy a hotel, you need to swap the 4 houses currently on the property plus chip in the cash equivalent of another house before the Bank allows you to have a hotel.

The only real mystery is, why do the Parker boys only allow room for 3 houses at the top of each lot. The 4th house is always hanging over the edge somewhere.

Becomes a huge problem when you are developing Pall Mall, and you buy the 4th house and you are forced to decide whether you want your house dumped into the electric company or falling into Jail. Get it right Parker boys !!

LOL Dazz, so much effort into this post.. +1!!!

 

[Peter Parker]

http://www.jdawiseman.com/papers/trivia/monopoly-rents.html gives rents and prices and has some interesting ratios.

According to http://richard_wilding.tripod.com/monorules.htm landing on free parking does not get you anything. Though we've always played it so that fees (eg through Chance/Community Chest) went under Free Parking and the next person who lands gets a windfall.

 

[Waldo]

http://www.jdawiseman.com/papers/trivia/monopoly-rents.html gives rents and prices and has some interesting ratios.

According to http://richard_wilding.tripod.com/monorules.htm landing on free parking does not get you anything. Though we've always played it so that fees (eg through Chance/Community Chest) went under Free Parking and the next person who lands gets a windfall.

Everyone knows its not a rule, but everyone still plays with freeparking being the money dump. Helps speed up the game.

The real question is, do you let people buy property their first trip around the board, or do they need to complete a full lap first (as per the instructions)?!?

Nope.....this **** was cleared up years ago on this forum.

1 hotel equals 5 houses.....go look up the Monopoly title deeds.

To buy a hotel, you need to swap the 4 houses currently on the property plus chip in the cash equivalent of another house before the Bank allows you to have a hotel.

The only real mystery is, why do the Parker boys only allow room for 3 houses at the top of each lot. The 4th house is always hanging over the edge somewhere.

Becomes a huge problem when you are developing Pall Mall, and you buy the 4th house and you are forced to decide whether you want your house dumped into the electric company or falling into Jail. Get it right Parker boys !!

What memories you are bringing up. I recall upgrading to hotels.

Thanks to op for this thread.

Can a Mod please change the title of this thread to ' Monopoly rules and tactics'?

 

[Singo]

Can a Mod please change the title of this thread to ' Monopoly rules and tactics'?

If it goes on, better split the thread and start one with that title.

BTW, I have heard of it, never played. Possible to play online? Worth trying?