Real state strategy - macrovic hunter
Posted: Sun Jun 14, 2015 10:54 pm
Ok, so today i was trying real state morghul scenario and i came up with a strategy which i would like to call:
Macrovic Hunter
What is it about?
Basically you use macroeconomic factors and ideal place hunting to save costs and construct buildings, if you do the analysis correctly, you will also be able to charge more than market price, making your apartments generate higher profits.
Strenghts
This strategy can make a steady and fast cash flow
Works well with companies who starts with a lot of initial cash
Steady cash flow cover losses in other areas
It is very hard to go bankrupt with this strategy.
Not vulnerable to economic recession.
Weaknesses
Revenue is low, so you will have trouble if that is your objective.
while profit is fast and steadily, it isn't potentially high.
How it works?
Basically the strategy is for ideal place hunting, but before you start, you need to get used to a couple of things:
1. City report: You need to get used to check this often, specially the housing/commercial demand index.
2. Land value map: always have it on.
3. Civic building filter: not really required, but it is helpful.
First stage: Commercial invasion
If you are playing Real State Morghul or a similar scenario where you can start with lots of cash, then you can do this:
First, borrow all the money you can get until the credit limit. Then search for all lands next to central business district of each city. Check where you would like to construct the buildings, when you select, do not build them imediatelly, but rather buy the land plots first (this prevents losses fromraising land value due to your neighbor buildings).
then construct the commercial buildings (preferably the 2nd from bottom of the list, looks like a round skycrapper). Spend almost all your money and distribute the buildings around the cities, preferably those who have higher demand (check city report). Leave around 30m or more to support losses for awhile. It wont be long before you start profitting.
Note: Do not let the overall rating of your commercial buildings below half and do not charge below market value, if demand is higher than supply, its ok to charge 105% and above, if its below or equal, charge from 100 to 105%.
These buildings, once full, shall net you a monthly profit around 300k to 400k each.
Once you done with this, do not build anymore commercial, as the supply of commercial buildings tends to always be much above than the demand, building more will hurt your profits.
Second phase: home searching
After an year, you should have enough money to repay back your loans and a decent profit to generate cash, now its time to build housing. Leave your commercial alone and dont build anymore, they will be fine on their own.
The first thing you should do is check the city report. Look at the housing demand index. This is important to select which city you will build. Negative index means there is more demand than supply, so target these cities and leave the cities with positive index alone.
Note: at this point, the commercial index will be a very high positive number and rarely will go down. This is the reason that makes it not worthy it to build anymore commercial buildings. In the rare event of this index going down, you can try commercial buildings again, if possible.
Once you selected the desired city using the macroeconomic indicator, you should now select where, in the city, you should build.
Open the land value map. From now on you gonna hunt civic buildings in areas that are not expensive (avoid dark areas like the plague). If you plan on building several apartments at once, the buy land trick first works here too. This kind of cross search can make a difference between you paying 10m in land to paying 3m in land.
Best civic buildings to build close to are hospitals, universities, libraries and schools, as they seems to give higher rating (not confirmed, only assumed). Once you locate a good spot, use the buy the land trick and then build. You dont need to pay attention to sports buildings, as lands with less value tends to have lots of greenery, but it is good if they are around too.
Note: Charge 105% or above. If the overall rating is high, you can consider charging above 110%. Never charge below market value, but never let your rating drop below half. Best apartment building seems to be the third one in the list (assumed, not confirmed).
If done right, each apartment building should give u between 120k to 200k profit (not revenue), in a steady manner.
Keep doing this trick and build until the demand index goes close to zero, once there, stop and look for another city, if all cities are positive then its best to wait for it to go down again (filling the market with houses will diminish the earning of each building, so its not a good thing).
Note: the advantage of real state is that it isn't bonded by brand, so you can freely jump from city to city.
Note 2: At some point, the index might settle next to zero and it will take awhile to go negative again because the AI will build ocasionally. It is assumed (not confirmed) the AI builds based on the index and they will quickly fill up any demand that might show up, so building when the index is zero is also recommended, it might even stop the AI from expanding much into real state. Avoid building when the index is positive.
Eventually, the AI might build stores close to your apartments, making them more desirable.
With this strategy, i was able to reach 100m profits and beat almost all objectives of real state morghul scenario by year 6. The problem is the low revenue from real state will make almost impossible to beat the 1,000m revenue objective, so at this point, you can consider diversification to something else.
Macrovic Hunter
What is it about?
Basically you use macroeconomic factors and ideal place hunting to save costs and construct buildings, if you do the analysis correctly, you will also be able to charge more than market price, making your apartments generate higher profits.
Strenghts
This strategy can make a steady and fast cash flow
Works well with companies who starts with a lot of initial cash
Steady cash flow cover losses in other areas
It is very hard to go bankrupt with this strategy.
Not vulnerable to economic recession.
Weaknesses
Revenue is low, so you will have trouble if that is your objective.
while profit is fast and steadily, it isn't potentially high.
How it works?
Basically the strategy is for ideal place hunting, but before you start, you need to get used to a couple of things:
1. City report: You need to get used to check this often, specially the housing/commercial demand index.
2. Land value map: always have it on.
3. Civic building filter: not really required, but it is helpful.
First stage: Commercial invasion
If you are playing Real State Morghul or a similar scenario where you can start with lots of cash, then you can do this:
First, borrow all the money you can get until the credit limit. Then search for all lands next to central business district of each city. Check where you would like to construct the buildings, when you select, do not build them imediatelly, but rather buy the land plots first (this prevents losses fromraising land value due to your neighbor buildings).
then construct the commercial buildings (preferably the 2nd from bottom of the list, looks like a round skycrapper). Spend almost all your money and distribute the buildings around the cities, preferably those who have higher demand (check city report). Leave around 30m or more to support losses for awhile. It wont be long before you start profitting.
Note: Do not let the overall rating of your commercial buildings below half and do not charge below market value, if demand is higher than supply, its ok to charge 105% and above, if its below or equal, charge from 100 to 105%.
These buildings, once full, shall net you a monthly profit around 300k to 400k each.
Once you done with this, do not build anymore commercial, as the supply of commercial buildings tends to always be much above than the demand, building more will hurt your profits.
Second phase: home searching
After an year, you should have enough money to repay back your loans and a decent profit to generate cash, now its time to build housing. Leave your commercial alone and dont build anymore, they will be fine on their own.
The first thing you should do is check the city report. Look at the housing demand index. This is important to select which city you will build. Negative index means there is more demand than supply, so target these cities and leave the cities with positive index alone.
Note: at this point, the commercial index will be a very high positive number and rarely will go down. This is the reason that makes it not worthy it to build anymore commercial buildings. In the rare event of this index going down, you can try commercial buildings again, if possible.
Once you selected the desired city using the macroeconomic indicator, you should now select where, in the city, you should build.
Open the land value map. From now on you gonna hunt civic buildings in areas that are not expensive (avoid dark areas like the plague). If you plan on building several apartments at once, the buy land trick first works here too. This kind of cross search can make a difference between you paying 10m in land to paying 3m in land.
Best civic buildings to build close to are hospitals, universities, libraries and schools, as they seems to give higher rating (not confirmed, only assumed). Once you locate a good spot, use the buy the land trick and then build. You dont need to pay attention to sports buildings, as lands with less value tends to have lots of greenery, but it is good if they are around too.
Note: Charge 105% or above. If the overall rating is high, you can consider charging above 110%. Never charge below market value, but never let your rating drop below half. Best apartment building seems to be the third one in the list (assumed, not confirmed).
If done right, each apartment building should give u between 120k to 200k profit (not revenue), in a steady manner.
Keep doing this trick and build until the demand index goes close to zero, once there, stop and look for another city, if all cities are positive then its best to wait for it to go down again (filling the market with houses will diminish the earning of each building, so its not a good thing).
Note: the advantage of real state is that it isn't bonded by brand, so you can freely jump from city to city.
Note 2: At some point, the index might settle next to zero and it will take awhile to go negative again because the AI will build ocasionally. It is assumed (not confirmed) the AI builds based on the index and they will quickly fill up any demand that might show up, so building when the index is zero is also recommended, it might even stop the AI from expanding much into real state. Avoid building when the index is positive.
Eventually, the AI might build stores close to your apartments, making them more desirable.
With this strategy, i was able to reach 100m profits and beat almost all objectives of real state morghul scenario by year 6. The problem is the low revenue from real state will make almost impossible to beat the 1,000m revenue objective, so at this point, you can consider diversification to something else.