Following the blog post Monopoly: The Game of Finance, we have seen how important it is to realize the “real” value of a property in Monopoly. Needless to say, it’s the same with the property of real life: the business value of a house is not at its price. If you plan to use the building for business, you had better build it where there are lots of people.
Many of beginners make that mistake. They love building on Boardwalk, where they can charge their visitors a hefty price. However, these naive business owners don’t realize that they have to store in a big fortune on these blue blocks too. With the same money, one can easily generate a better income flow elsewhere.
Our question for today: out of all building block in the Monopoly board below, which one yield the best Return-on-investment ratio? That means the block which will give you averagely the highest rents in the same amount of time.
Before you scroll down for the answer, think a minute. It may not be obvious as you think.
Have you got the answer? Great!
The property block which will give the best return on investment is the Red and Yellow block. They give great rent for a fairly ok price and their chance to be landed on ranked second in the game! So if you own one of these two blocks, you have a very good chance to win.
But… In the last post, didn’t I advise you to buy the Orange block first?
Yes I did, and it has a reason.
To uncover this reason, you can check my next post.