Buying Property

My guide to buying properties.
I personally think it's essential to get the most bang for your virtual buck.

To do that, first you must know the cost and return of properties.
All properties have an initial cost that goes up by 10% of the initial cost for each number of properties.
x is the initial cost, y is the number of properties already owned, giving you z the cost of this property.
X(1+(.1*y))=z

The return on the property is a fixed amount.

To find which properties are the most valuable, you must determine how long until the property pays for itself, and starts earning a profit.

A simple formula allows you to determine when the property is earning profit.
(cost of property)/(return) = pay periods until you're earning profit.

For example when you buy your first parking space for $3000, earning you $25 every hour (or every 50 minutes if your a bankroller). It takes (3000/25)= 120 pay periods until you earn profit. This as it turns out, is one of the most profitable investments.

All this is just a rather long winded way to say, that you want a property that doesn't take long to pay for itself, making it a good investment.

I've created a chart to look at as reference for which property you will be most lucrative for your investment.



Hope this is helpful.
More to come.

1psn3

I could see this being very helpful Using it right now actually to maximize Net Income

I'll link you to my blog of the guides.

http://skpstein-racinglive.blogspot.com/

1psn3

Hmm, essentially flawed by the fact that some will give a better return once you have paid of your installments!

For example, parking place will take double the time to replace on your first purchase - but after that you will be recieving an income over 10x higher. If you were to work out which would earn you 100k first...the result will be vastly different.

Nevertheless, very useful - thank you

Thanks mate, i will be using this. It seems to take me ages to earn any money lol lol

Very good chart, looked at your blog and bookmarked it.

Hope you do more like this or do one for the most efficient street jobs.

Agreed - would be good to know points per fuel used for street races

I think, that the chosen calculation is not really important.
It is more important, that you look how much do you have to spend for the same income.
For example:
Downtown Loft Income 2700$ Cost 700000$
Parking Space Income 25$ Cost 3000$ +300$ for every additional
To have the same income as with a Downtown Loft you must buy 108 Parking Spaces
108 Parking Spaces = Cost 2057400$
Therefore I think it's better to buy the more expensive Estates.
Cheers

Yeah prefer to save up and buy the big real estate.

Thanks for your replies guys. I'm glad some of you could find this helpful, and others can find problems so that I may improve it.

Let me sort of amend what I said. First of all, I think this graph is useful if you look at it in a... thoughtful way.

For example, no one's pointed out that buying your first and second parking garage with a total cost of $693,000, will get you $3000 per pay period. This is MORE than you would get if you bought a $700,000 downtown loft which pays only $2700. On top of that, you would be getting "profit" much sooner. Also this allows you to buy properties as you can afford them, again you'll start getting profit faster that way.

That being said, the way I purchase is, I know I'm going to spend the same amount, no matter what. You obviously wont get more money by buying only the parking space, however finding that the first chop shop is more profitable than buying 3 parking garages is valuable knowledge.

Sorry for over simplifying my analysis of the properties.

More of my horrible analysis to come...

Add me! 1psn3

Also if anybody has a better way of quantifying the value of a property that gives you an investment vs return type thing, let me know. I just did it this way cause it made sense to me.... All I know is I am making $23,450 every 50 minutes.

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BigD wrote:I think, that the chosen calculation is not really important.
It is more important, that you look how much do you have to spend for the same income.
For example:
Downtown Loft Income 2700$ Cost 700000$
Parking Space Income 25$ Cost 3000$ +300$ for every additional
To have the same income as with a Downtown Loft you must buy 108 Parking Spaces
108 Parking Spaces = Cost 2057400$
Therefore I think it's better to buy the more expensive Estates.
Cheers

True, but the problem with that is how do you calculate that across all of the properties. What I had written says nothing close to buy only parking spaces.

You'd have to have a common denominator in all of this, which as you can see there isn't an easy one. Again more fruitful calculations are welcome.

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My missions Guide:
http://skpstein-racinglive.blogspot.com/2009/04/missions-guide.html

Very incomplete as I am only level 26 at this point, but helpful none the less.

Add me! 1psn3

skpstein wrote:

BigD wrote:I think, that the chosen calculation is not really important.
It is more important, that you look how much do you have to spend for the same income.
For example:
Downtown Loft Income 2700$ Cost 700000$
Parking Space Income 25$ Cost 3000$ +300$ for every additional
To have the same income as with a Downtown Loft you must buy 108 Parking Spaces
108 Parking Spaces = Cost 2057400$
Therefore I think it's better to buy the more expensive Estates.
Cheers

True, but the problem with that is how do you calculate that across all of the properties. What I had written says nothing close to buy only parking spaces.

You'd have to have a common denominator in all of this, which as you can see there isn't an easy one. Again more fruitful calculations are welcome.

Add me 1psn3

What I wanted to show is, that the interesting calculation is not that, how long it takes until the Estate pays for it self.
I'm still calculating over all of the Estates. How much you have to spend to get as much income as with the highest one. And also over a defined period.
As soon as I got it, I will post it.
Cheers

You are forgetting an important part.
There is a 10 % deduction when you deposit the money.
The money on the bank is not making any income.
Sometimes is better to buy before you deposit (assuming that you are going to lose 10 % automatically).

am making $168,000 evr 50min.. i just say buy as many prptz az u can... i have equal amount of propiteis! 12of each except for the raceway i have 3.

ADD ME ==44VMR==