Property Trading Tutorial
The principle is simple -
Buy a property for a price less than the cost price, then sell it on for / close to the cost price
It sounds so easy - right... yet every day I still see tens of properties liested on the public estate agents AND in the forums / newspaper being sold for well under the cost prices. They should barely even hit the pages before some up-and-comer buys and re-lists it for a tidy profit!
So how do you get started? Well first of all you need some cash... I started with only a few million, but the principle is the same if you have less, you just need to start lower down the property ladder.
Once you have enough cash - watch the estate agents for a day - how much are the properties listed for? How much are they actually SELLING for? Once you have a fair idea, you can move on.
Now, look for a bargain - your first property purchase is best to go for one that will fetch a good profit so you have a buffer in case things don't go to plan... A good example is a 1000 happy mansion listed at less than $5,000,000 - if you see one BUY IT!
Finally - check what other mansions of 1000 happy are listed and put yours a few dollars less and wait for the money to come rolling in!
Work your way up to better property for more profit - it's important to know the cost prices of all the property, and ALL the add ons that increase there happy! You don't EVER pay more than the cost price!
I will post a list of all the property costs + add on costs for mansions upwards soon...
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Comments
Comment posted by Neros55
Jimmy! I just got my money out and here is how I am going with the Property Trading. Correct me if I am doing anything wrong. I saw a few mansions for sale under 5,038,000. I put them up for 5,100,000 but so far no one has bought them yet. And I currently have 300m. I am still confused on how to move up and possibly make more money? Any suggestions?
Comment posted by Neros55
Jimmy! I just got my money out and here is how I am going with the Property Trading. Correct me if I am doing anything wrong. I saw a few mansions for sale under 5,038,000. I put them up for 5,100,000 but so far no one has bought them yet. And I currently have 300m. I am still confused on how to move up and possibly make more money? Any suggestions?
Comment posted by jgabel
ok, thanks for the advice!
Comment posted by JimbobBEng
I guess beach houses aren't very popular :( If you could afford to buy all 22 you could turn a huge profit ;) because if the only ones available are at the full price, they will sell at that price ;) I would watch the market a little bit and see if ANY sell.. If not, move upwards and leave the beach houses for someone else...
Comment posted by JimbobBEng
Well the mansion market is a bit of a weird one... You can sell mansions for more than they cost pretty much all day every day.
A mansion costs $5,038,000 to build, so if you can buy at less than this then do so!
I see mansions being sold from $5,050,000 right up to $5,200,000 every day. It just depends if you want to do volume sales, or you are happy to sit and wait for one mansion to sell to make a bigger profit...
Comment posted by jgabel
Kinda confused... I see a fully upgraded Beach House (650 Happy) selling for $870,000. The cost to build this is $1,279,000. Am I looking at this right? If so, why would someone sell for that big of a loss?
Comment posted by jgabel
Kinda confused... I see a fully upgraded Beach House (650 Happy) selling for $870,000. The cost to build this is $1,279,000. Am I looking at this right? If so, why would someone sell for that big of a loss?
Comment posted by JimbobBEng
Yeah they would if they really need a quick sale. I advise Always check the info on the property in case there is a bug with the happy display (I have had this before) If it has all the upgrades there then BUY and make your money...
Comment posted by jgabel
so confused. can't figure out how to turn a profit in housing. All the beach houses are selling well below the build cost. As of right now, there are 22 selling for under 900K, all of which have 650 happy.
Comment posted by -lara-
really like this sight nice work!
I am wanting to start this property trading thing buying and selling mansions. What would be a good price to buy a mansions with 1000 happiness and then what would be a good price to sell for?
...cheers...
Comment posted by -lara-
really like this sight nice work!
I am wanting to start this property trading thing buying and selling mansions. What would be a good price to buy a mansions with 1000 happiness and then what would be a good price to sell for?
...cheers...
Comment posted by JimbobBEng
I would say that with that kinda cash, you dont want to jump in the deep end.
That is the mistake a lot of traders make... go straight in at castles and lose millions...
I would start off with mansions like I did - build a couple sell them for profit and move your way up slowly. With your kind of cash you could make 50-100m per day in the high end property trading if you can spend the time doing volume sales, but if you try it too soon you wont have a feel for a good / bad deal and wont know the sale prices / times etc.
Comment posted by ryanastle
Indeed it Works! Ive tried it today my first time really tradeing xD but it works well and i think im going to use these Methods more often. Thanks JimbobBEng for these Tips. Pun.
Comment posted by Neros55
Hey guys, does anyone know what should I invest in with 320m? I am really not sure what I should do. I am new to the property trading and I don't know which prices are good and which prices are a rip off. I am also thinking of running drugs but for the past few days Xanax has been 700k-718k. Anyone got any suggestions?
Comment posted by JimbobBEng
No idea what the font is haha...
OK the key in that example is to buy out the market.
That is EXACLTLY what I did to the mansion market.
Anything under $5m I bought and put on at $5m.
There used to be mansions on at 4.7-4.8m all the time... So basically, short term I was short of cash, but then after about a week I made a massive profit and the market has stayed at 5m or higher ever since then!
Comment posted by Lord_Atreides
That is quite spectacular..
But it does mean having a bit of money to start with! So if you've got about $7mil, then buying 2 penthouses won't work.. You're better off buying about eight Chalets or Beach Houses, say..
And buying up the market. Ok.
This is quite funny actually, because I had a similar idea when I started off, but seeing some Apartments on the rental market for $1 for 100 days sort of made me think the Property Market was messed up.. XD
Comment posted by JimbobBEng
Yeah it can be a bit of a mess.. That is why i avoid rentals. I bought 10 mansions when renting first came available. But I soon found out that there are plenty of morons out there renting a 1000 happy mansion at $400 a day and stuff like that.. You cant compete or make a profit if people are making losses on their property!
Comment posted by Lord_Atreides
There's a big flaw with property trading..
Say you buy a penthouse for 3.3mil, and then put it up for sale at just under the upgrade total cost (which is $3,538,000) - there are still about 7 other properties on the market for cheaper..
The Traders may have calculated the ideal selling price, but the buyers haven't. So how are these properties meant to sell?
- By the way, what font is this?
Comment posted by Lord_Atreides
What is a good cash base to start on with properties?
Comment posted by JimbobBEng
I would say you need a good couple of million if you want to make big money... But honestly you can start right at the lowest property if you are really short on cash, but I would personally follow the Trading for beginners tutorial instead because you can earn more money faster for less effort that way!
Comment posted by JimbobBEng
Start with the trading for beginners tutorial and then move on to property when you are comfortable trading, and have a good cash base to trade with...
Comment posted by rave_master_201
OMG i have been put in federal rofl .same like milkybar_1392.i might not want play again from beginning if i dont have my account back =(
Comment posted by Lord_Atreides
I have bveen playing for about a year now, and i have 500k :P What do you suggest I do?
Comment posted by JimmyJames
any 1000 happy Mansion for less then 5mil is a good deal, even at 5mil, you should be able to make money. Mansions are weird because they cost $5,038,000 to buy and fully upgrade, yet they consistantly sell for more then that on the estate agent, I've sold mansions for as high as 6mil :P, but realistically, you can plan on selling them for 5-5.2mil, just gotta watch the market for the right time to sell
Comment posted by milkybar_1392
hey i got out few days ago, been carrying on with this, i made around up 2 14m from doing penthouses but i darent buy a mansion beacuse im not sure as of with the upgrades etc, could you post what happiness ratings u buy and for what the most u pay is please
Comment posted by rave_master_201
theassumer has purchased the Beach house from you for $880,000.so 680k profit =)
Comment posted by rave_master_201
You have purchased the Beach house for $200,000!(650 happy full upgrade) lucky day lol xD
Comment posted by JimbobBEng
That means that the beach house has got almost $300,000 knocked off the cost price... seems like a pretty good deal to me.. Just double check the info to ensure that it has all the upgrades and BUY! Then sell for just under the cost price for a sweet profit!
Comment posted by rave_master_201
i didnt understand about the property trading.you say Beach house total cost $1,279,000 (650 happy).right now i see in market for $890,000(650 happy).so should i buy that 890k beach house?and when should i sell it?
Comment posted by JimbobBEng
Interesting... Usually you have to have suspicious money transfers for that to happen! You out yet?
Comment posted by milkybar_1392
downside,.... as i was lvl 1 with a bit of cash,, they suspected me of multi and feded me
Comment posted by milkybar_1392
sorry for second post lol didnt realise
Comment posted by JimbobBEng
LOL
Comment posted by milkybar_1392
update im on 3.2m since i last posted your tutorial really pas off, im also living in a 925 penthouse now
Comment posted by JimbobBEng
That is awesome! It doesn't take long does it! Really great to see someone making millions from the tutorials!
Comment posted by milkybar_1392
hey so i started torncity yesterday, a friend of mine had been following your guide and said i should, so far from buying and selling houses ive made around 1.4m, i was just wondering if there are any other good items etc that u are able to apply this same scheme and make a good profit as the property list doesnt always have anything to offer oh and i need it to be in my price range i have 1.4m :)
Comment posted by JimbobBEng
Check the tutorial, trading for beginners... That will tell you about trading medical items, they are the most commonly traded items, but you can expand outwards from there, I will be publishing more guides with more expensive items soon...
PS it's seriously great to see that a person who is literally one day old in TornCity can make $1.4m a day!
Comment posted by milkybar_1392
hey so i started torncity yesterday, a friend of mine had been following your guide and said i should, so far from buying and selling houses ive made around 1.4m, i was just wondering if there are any other good items etc that u are able to apply this same scheme and make a good profit as the property list doesnt always have anything to offer oh and i need it to be in my price range i have 1.4m :)
Comment posted by JimbobBEng
Hmmm It's hard to know without having the specification. My first instinct is NO it's probably not a good deal. It's likely to have:
Hot Tub, Sauna, Advanced Shooting Range, Large Pool and an Open Bar which amounts to 300 happy... The total cost of that is under $1m so its a bad deal.
However, if the ranch has NONE of these upgrades and JUST the superior interior (which costs $7.5m) then it's an amazing deal, but that is pretty unlikely as no one with more than one braincell would every build that haha...
Comment posted by cowsgomoooooo6
hmm is a 900 happy ranch selling for 16m a good deal?
Comment posted by JimbobBEng
I'll give 3 examples. a 1200 happy ranch, a basic palace (so 1000-1250 happy) and a 1750 happy palace as these are the easiest to trade in...
1200 happy ranches:
I tend to purchase these in the region of $20m - $21m and sell them for $21.9m Which is still a lot less than they are worth so they tend to sell quickly.
1000 - 1250 happy palaces:
These I will buy at anywhere from $40m right up to $63m. If they are not at 1250 happy when you buy them, upgrade them for the few hundred k that it costs and then I list them on the market at $64.9m Its a good $600k saving for any buyers out there and still a good profit for you.
1750 happy palaces:
These cost around $98m to buy new, so a good range to buy these is from the low $70m's up to $94m reselling them at $97.9m tends to move them quite quickly.
You have to adjust your selling price based on the demand for the property and the number of other properties on the market... In the past I have held onto palaces for a week or two to get a better return. These days I would just buy out any competitor, but back when I only had $500m total cash that would have been impossible...
Comment posted by JimbobBEng
I recommend you start on penthouses, do a few trades... understand the concept and get used to the market and how to spot a good deal, then slowly move up to mansions and ranches... then you will be trading in all 3 and within a week or two you should be ready to move onto palaces :D
Comment posted by SwankNasT
So what do you recommend buying ranches and palaces at? What do you consider a good return on these two property's? Thanks for the reply!
Comment posted by adambyrne111
have 40 million to spend on buying mansions or ranches..were should i start
Comment posted by adambyrne111
have 40 million to spend on buying mansions or ranches..were should i start
Comment posted by adambyrne111
have 40 million to spend on buying mansions or ranches..were should i start
Comment posted by JimbobBEng
That is a sweet deal.. even for a basic detached house its $300,000 so you have definately found a bargain! Nice work!
Comment posted by electra
i too have done this for a couple of weeks now and turned lil money into a lot i mainly work with mansions as they are my perfect price range
Comment posted by JimbobBEng
Good to hear some success stories! keep them coming!
I read all the comments that are written here!
Comment posted by michealconroy
Just bought a Detached house after reading your blog, was on the market for $270,000 with 475 happiness and selling for $340,000 as the next lowest price for same happiness is $350,000
Comment posted by Ra1der
Hey All!I have used this method for a year or 2 now! And it really does work!If your doing it small time atm, on small houses, keep going, once youreach Ranches you will start making big money!I deal in full happy ranches, and you can make 1mill+ on each Ranch if you get them at the right price!
Comment posted by JimbobBEng
OK well, you can go for beach houses, or detached houses because they are within your price range... they only come with a few possible upgrades too which makes it really easy to work out if the property is a good deal or not.
Also: in my experience, the cheaper the property, the quicker it is to sell (if you price it right) because the demand tends to be higher... Eg you wont get that many potential buyers on a private island, but a mansion there are literally hundreds every day who buy!
OK so a couple of base prices for you:
Detached house : $300,000 (200 Happy)
Beach house : $500,000 (300 Happy)
So you know the base costs of the property, and how much happy they come with as standard... Now the upgrades:
Detached house total cost $979,000 (500 happy)
Original Cost: $300,000Beach house total cost $1,79,000 (650 happy)
Superior interior: $150,000
Large Pool: $500,000
Hot Tub: $17,000
Sauna: $12,000
Original Cost: $500,000
Superior interior: $250,000
Large Pool: $500,000
Hot Tub: $17,000
Sauna: $12,000
OK so basically with your $500,000 you will be pushing it to get a fully upgraded one of either of those properties, although its worth a try, but basically look down the market lists... if you see one that is a good amount under the cost price, with the options that the property has - buy it and list it at the cost price! you will soon have it sold on for a profit and can move on to the next property!
Hope that helps!
Comment posted by rave_master_201
got any trading property advise for 500k cash lol.is it ok for me to buy cheap beach house etc instead of mansion cuz not enough money to buy this one :P even it is cheap from its sell price though
Comment posted by JimbobBEng
From what I can work out it's a 50:50 chance with RR, just like in Blackjack, so half the time you will lose ;) I will be posting some advice on gambling soon, as it's a good way to get started with earning cash on a daily basis when you litte / no money... Roulette, high-low and slots are the ones to go for in summary, but I will go into more details when I post....
Comment posted by rave_master_201
play RR and you will get money xD .I got 100k a day by just playing RR once,the bet is 100k =)
Comment posted by iarlahelotoday
that's a good idea but as a starter how do you raise enough money to start? I know ou can start off small but even so money can be VERY tight at the start!
Comment posted by JimbobBEng
I will post some tips on how to get started with very little money... The property market isn't always that great, it has bad days where there isn't much available... so when that is the case I turn to other methods. I will write some advice on these methods soon :D
Comment posted by Neros55
OMG. I think I made a mistake. I flooded the property market with 10 of my mansions at a selling price of 5,100,000. Is this wrong?
Comment posted by JimbobBEng
Haha not really
Someone will buy them out... If you list at that price in a large group, it will clog the market...
With that kind of quantity its better to list one or 2 at a time... Otherwise people will see the large group and assume that there will be some coming on cheaper and wait...
Once you get the hang of the mansion trading then you can move up... That is why its good to start with smaller property like this... To learn when the amounts are small!
Comment posted by Neros55
Alright. Thanks. I managed to sell 5 mansions in the first 5 hours of putting them up. ^^ Is there a better price to place it rather than at 5,100,000?
Comment posted by jgabel
Man, Neros, you have 15 of them up there now! :-)
Comment posted by JimbobBEng
LOL
When I used to do this I would always leave a few on at 5.5m or something high like that... I would usually list 2 at the lowest price on the market and re-list if others listed cheaper...
the 5.5m ones sold plenty of times while i was sleeping when some guy buys 20 mansions for a property give away or something :D
Comment posted by Neros55
Yeah, I think I learnt my lesson. Some random guy mailed me and ask if I could sell it to him in bulk. it was 4.8m per mansion. I said 'NO WAY! I would make serious losses' then he got pissed and started attacking me lol. Thank goodness I had no money at that time :D
Comment posted by JimbobBEng
Yeah some people are stupid like that...
It does help to have stats like mine sometimes haha
Comment posted by Liverfan01
I have add a house on the market for 3 days now. It takes to long Am getting frusted now.
Comment posted by Neros55
Thats why you stick like 10 of them up there and hope to get one sold. Lol
Comment posted by JimbobBEng
well that is why the key is in research and preparation ;) you gotta watch the market a bit before you jump in!
Comment posted by milkybar_1392
about 20 posts in im lvl 1 with 1.4m 47 posts later im lvl 14 with a 110m palace and dual schimitars, thanx jimbob :)
Comment posted by milkybar_1392
im now quiting tc after getting scamed of it all, its a good game but some people ruin it. have fun guys
Comment posted by JimbobBEng
How did you get scammed?
Maybe I should write a thread on how not to be scammed... It would last about 10 words I think. 1) Always use the TRADE tool 2) Always use the TRADE tool yeah that would be it lol
Comment posted by Neros55
only people who rush to make more money get scammed. If a deal is too good to be true don't trust em.
Comment posted by jay_gildea
i hate tc i got hacked and banned at the same time!!!
Comment posted by jimbobbeng
Talk to staff, they will help you!
Comment posted by Caitlyn
Were is the best place to find property for less?
Comment posted by jimbobbeng
I would say that checking the forums or just keep watching the property market. I just bought 30 mansions at below cost price that were all sat on the market!
Comment posted by jimbobbeng
Hehe
Comment posted by jimbobbeng
Was all Just for fun really
Comment posted by tomroutley
what i dont get is why are palaces so cheap? they cost around 98m to build but they sell for around 91-93m on the market
Comment posted by jimbobbeng
Supply and Demand.
I bought all of those and re-listed at 97.9m.. Still well under cost price.
The same volume of palaces will sell, but the price is fairer!
Comment posted by turbosnail
yea rite, mansion market is pretty weird. a cost to built one is 5.038mil but if we sell higher than that, there are still ppl who will buy it. wouldnt it be easier if they just buy a new one and upgrade it?
Comment posted by jimbobbeng
It would be cheaper.. Yes, but people are happy to buy them for the convenience of
a) not losing all their happy and
b)Not having to spend the time to upgrade
For example if a billionaire faction owner wants to provide mansions FOC to all his junior members, he wants 50 mansions at 1000 happy. It would take him half the day to upgrade the mansions and would lose all his happy. So if he spends and extra 2-5% on them so that he doesnt have to bother... HE DOES!
Comment posted by -crunk
Hey, just found dumbells and was lucky enough to bag 270m for them, so i have 290m to play about with on the property market, would you recommend ranches? or would i make more from palaces?