What is point of buying buildings?

[WildDogsGaming]

OK, so I finally bought a building. It cost $10,870,500. It is now at 100% occupancy. It is making me $376 a day.

Now that a full couple years have gone past, I can rely on the numbers I am seeing.

My property tax is $3,239.60 a year. My annual income from the property is $22,560.

That means I am making $19,321 a year from this property. Even if I were to use the rental space for myself for free, before I bought it, they wanted $2,200 to move in, and $109 a month for rent. So let's just add that $109 each day to the total I am "making". So $6,540 is added, which means at the price I bought the building for, it will take me 420 years to recoup that investment cost.

So as it currently stands, I am not seeing why I should buy properties in the game. They are a good money sink I guess, but no other reason, unless I am missing it.

To the devs, please look at balancing the rent we can get from our buildings we buy. I would expect if I spend $10 mil on a building for it to take time to recoup my costs, but 420 years is too much. I would expect maybe 15-20 in game years? So we need to either greatly reduce the price of the buildings, or greatly increase the revenue we receive from them.

Unless again, I am just missing something very obvious here, lol.

[Oranix]

The numbers are way, way off for sure. Needs to be fixed.

[Swisspike]

A typical rate of return for an office building is between 6 and 12%. For your building, this is $1786.93 to $3573.86 per DAY.

I can get that in my gift shop. So..even real-life office buildings generate less profit than a Big Ambition's small gift shop.

If anything, generating $2500 PROFIT for a small store per day ($912k a year) is too high, especially if you have five full time workers making $240 a day, EACH.

There needs to be a money sink...a full blown stocks and bonds DLC, or treasury bills, or even setting up a manufacturing facility in a different area.

The PC game C.E.O., or Capitalism 2 have a system where your businesses can be "vertically integrated." This is where the raw materials, processing location, production facilities, and retail stores are all available. Not sure if this game can ever get to that level. Probably not...not within the scope of the game.

Take a look at these other two games. They're pretty good at what they do.

[BeardifulBill]

Real Estate is not meant as a means to make a huge amount of money. It's a way to get your money out of your bank account, and have it not lost to inflation or high negative interest rates.

Tens of millions of dollars in your bank account you will lose a lot of it just sitting there to negative interest.

Even if you get positive interest, you make more money from rent than you would interest.

Then if you need that money to buy more businesses, sell your building and you have made a bit from the rent, and didn't lose it to greedy banks.

You can also invest in stocks to hide your money from banks as well.

"Savers are losers" ~Robert Kiyosaki, Author of 'Rich Dad, Poor Dad', talking about people who keep money in bank accounts.

[WildDogsGaming]

Originally posted by BillytheCrayon:

Real Estate is not meant as a means to make a huge amount of money. It's a way to get your money out of your bank account, and have it not lost to inflation or high negative interest rates.

Tens of millions of dollars in your bank account you will lose a lot of it just sitting there to negative interest.

Even if you get positive interest, you make more money from rent than you would interest.

Then if you need that money to buy more businesses, sell your building and you have made a bit from the rent, and didn't lose it to greedy banks.

You can also invest in stocks to hide your money from banks as well.

"Savers are losers" ~Robert Kiyosaki, Author of 'Rich Dad, Poor Dad', talking about people who keep money in bank accounts.

Sorry, I am trying to understand your post, lol.

When I invested money in the "safe" investment, the 10 million I made as an investment in 14 days went from 10 million to 10,053,xxx. So I made a lot more putting it in that 0-3% investment, in a very short period of time.

$19k is what I made for 60 days (1 year) for a $10 mil investment in a building. There is no recoup that loss. As it stands today, buying buildings is stupid and pointless in the game. You would make more putting that money in that 0-3% investment, and adding to it.

[jhovgaard]

BillytheCrayon is spot on. Buying buildings is a way to safeguard yourself from inflation. For the sake of simplicity, we introduced negative interest rates, as simulating inflation would be incredibly confusing to the average player.

Real estate prices are currently not dynamic, but we'll add that soon. Similar to how the investment funds work.

[Chaezaa]

Buying a property is not a loss. The building is there and has a certain value. Instead of having 10 million in paper money you now have 10 million as a building. Selling a building is the transformation from a building back to paper money.

Rent is just a bonus for some extra cash flow and covering the running cost to maintain the building.

[Mickey Jr]

Can someone explain me how it works if you buy a company ? Do you get all the employees in it ?

[flooring509]

Originally posted by Mickey Jr:

Can someone explain me how it works if you buy a company ? Do you get all the employees in it ?

Yes, I just bought one not long ago you get everything in it.

[BeardifulBill]

Originally posted by WildDogsGaming:

Originally posted by BillytheCrayon:

Real Estate is not meant as a means to make a huge amount of money. It's a way to get your money out of your bank account, and have it not lost to inflation or high negative interest rates.

Tens of millions of dollars in your bank account you will lose a lot of it just sitting there to negative interest.

Even if you get positive interest, you make more money from rent than you would interest.

Then if you need that money to buy more businesses, sell your building and you have made a bit from the rent, and didn't lose it to greedy banks.

You can also invest in stocks to hide your money from banks as well.

"Savers are losers" ~Robert Kiyosaki, Author of 'Rich Dad, Poor Dad', talking about people who keep money in bank accounts.

Sorry, I am trying to understand your post, lol.

When I invested money in the "safe" investment, the 10 million I made as an investment in 14 days went from 10 million to 10,053,xxx. So I made a lot more putting it in that 0-3% investment, in a very short period of time.

$19k is what I made for 60 days (1 year) for a $10 mil investment in a building. There is no recoup that loss. As it stands today, buying buildings is stupid and pointless in the game. You would make more putting that money in that 0-3% investment, and adding to it.

Yeah there is most likely a meta where you only need to invest everything in one stock, and only start one type of business and maximize how much you can make compared to starting with other business types. I'm thinking later in development, some randomness will change that to some degree.

[Exodusol]

Originally posted by jhovgaard:

BillytheCrayon is spot on. Buying buildings is a way to safeguard yourself from inflation. For the sake of simplicity, we introduced negative interest rates, as simulating inflation would be incredibly confusing to the average player.

Real estate prices are currently not dynamic, but we'll add that soon. Similar to how the investment funds work.

Make and Advanced mode and easy mode, so both sides are pleased

[m61a1]

I assume the buildings for sale aren't rotated?

[Kyle]

thought you could buy any building, just had to offer a lot

[Domestic Life]

Does the property value even increase tho? I haven't noticed it doing so and there are investment accounts that do 0-5%. I don't see the property values increasing by the same amount.

[Krynet]

Buying a building is not included in the "Total Net Worth"?

[Shabutie]

Annual income of $22k on a $11M property is a BAD investment haha. My real landlord makes about $40k off of just one of his properties per year and its currently valued around $500k.