Land Value Abuse: Farm Fraud and Mansion Popping

Post here if you have any strategy tips to share
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Hans_Lemurson
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Land Value Abuse: Farm Fraud and Mansion Popping

Post by Hans_Lemurson »

(Note: Note: the following exploits were done using version 6.8.07 without any DLCs.)
--------------------------------------------------------------------------------------------------------------------
Land Value Abuse:
  • Land can be bought and sold freely and instantly. There is somehow always a ready buyer for land regardless of it's location or the time of day.
  • Buildings can be constructed instantly. A skyscraper can spring into being overnight to the shock and wonder of anybody who went to bed with a clear view out their window.
  • Buildings change the value of the land around them: Apartments, Retail, and Commercial buildings elevate it, but Farms and Mines lower it. Often this effect is subtle, sometimes it is not.
It is a known trick/exploit to buy the land surrounding your buildings before they are constructed so that you can profit from the sudden increase in land's value. The land is bought in an instant, skyscrapers are magicked into existence, and then the land is immediately sold for a higher price to the mysterious and unknown land-purchasing entity. Who are you buying from? Who are you selling to? Why would they buy back the same plot of land at a loss mere moments after having sold it? Nobody knows.
And nobody cares.
It's free money, and that's what matters!

But skyscrapers are expensive. You can offset a lot of the construction costs in this way, but can you truly profit?
Also, if it is to be repeatable, you're going to be doing a LOT of demolishing, so you can't use skyscrapers. You need something cheaper.

My initial forays into abusing the land value mechanics began when I saw that R&D centers placed near HQs caused a noticeable jump in land value in the area between. I was unable to reliably profit from this though, since R&D centers are expensive. The repeated construction and demolition of Research Labs tanked my monthly profits though, incurring massive write-offs even though any losses in my actual cash value were minimal. (This caused a -50% drop in my stock price over the next few months despite no monetary losses, allowing me to more easily buy up stock to consolidate company ownership, but that's it's own separate exploit)

Listed here are the successful Land Value Abuse techniques I've been able to develop.
  1. Farm Fraud.
    My first major success happened when I tried playing the land-value game in reverse: I built a farm, bought the reduced-price land around it, demolished the farm, and then after the land values sprung back to the city default, sold the land for profit . Building and demolishing the farm incurred a write-off of about $1 million, but the impact in the tiles surrounding the farm (up to 4 tiles distance) was enough to cause a land-value rebound worth about $3.5 million, giving a net profit of $2.5 million. If I do that 400 more times I'll be a billionaire! :lol:
    -To do this on a large scale, find the most expensive city on the map, and build a row of farms gapped at least 4 spaces apart. Mass-buy all the land within 4 tiles of a farm, then demolish them all. Sell the rebounded land at a profit. Annoyingly, you have to keep opening and closing the firm menus, and switch back and forth between construction, and land buying and land selling. Is there a lazier method available?
  2. Computer/Sports Store Demolition
    I experimented with finding land-value synergies between different buildings, and found the most potent effect came from the 3x3 Commercial building. Building any retail store nearby resulted in large land value gains in the areas of overlapping influence. Computer and Sports stores are half-priced compared to regular 3x3 buildings, so they were ideal for minimizing my demolition write-offs while maximizing the affected land. However, in my first test, because of the habits gained from Farm Fraud, I placed the Sports Store before buying the surrounding land. With the land value already inflated, it was pointless to buy anything, so I demolished the store. But I noticed something: The land sale was higher than what it had been when I bought the store. Not a lot, so I still lost money, but it gave me an idea: what if build the store next to the Commercial building? When a Firm gets demolished, the land somehow gets sold BEFORE the demolition completes and lowers the land value. :o So...if I can maximize the price difference under the firm's footprint, I can buy and sell the land in two easy actions!
    -To do this on a large scale...you can't really. Just one store at a time. But it's quick! Just build it next to the Commercial Building, then immediately demolish it. Earn yourself a nice $2-3 million profit while minimizing your clicking. Apparently you sell the land before the building vanishes, like the magic trick of pulling a tablecloth out from underneath the plates and glasses of a set table.
  3. Mansion Popping
    Earning money from demolishing your own stores is all well and good, but this only increases your COMPANY's assets, not your personal cash! We all know that the true purpose of your business is to funnel cash directly into your personal bank account, but your salary dribbles in so slowly, and Dividends give some of your profits away to other people. :cry:
    If only there were a more direct way...
    What if...what if you take the Store-Demolition trick...but use it on your personal Mansion!
    Do mansions even benefit from Commercial Buildings? Yes. Yes they do. :twisted:
    Build a Mansion next to your commercial building, and then immediately demolish/sell the land. You of course want to make sure you do this with the building that gives you the largest land area for the lowest price, so Mansion #3 on the list will do. A 3x3 for as cheap as you can get.
    Build it and then demolish it for another $2-3 million in profit (depending on the city). But this time it's your personal cash! :mrgreen:
    Repeat this as many times as your wrist will allow, and you'll earn more than enough money for your carpal tunnel surgery.
  4. Hybrid Method
    Personal profit is great, but if you can make a profit from the Mansion's footprint alone, then how big is the effect on the surrounding land?
    Substantial.
    Buying the land in the overlap zone before building the Mansion earns you a 60% gain in value in the adjacent 2 squares! (though this falls off with distance) All told, I could gain about $15 million in company profit from selling the land after building the Mansion (in a cost 84 city). My company profits when I build the Mansion, and my wallet profits when I demolish it.

    The only downsides are that your company no longer gets to pretend its losing money from demolition write-offs (the expenses are all coming out of your wallet), and it's also a lot more clicking. It's not nearly as quick as the Build/Demolish cycle for mansions alone, but it does create the highest land value spike that I've been seen so far, and it would be a shame not to let your company profit from that.
These are the best techniques I've found so far for exploiting the Land Value mechanics in a way that can actually make some real money.
Aside from the initial thrill of being able to earn enough cash to buy my company 100%, they were boring, repetitive and not very fun. Not sure I'd recommend it to anybody who values their wrists and sanity. But if you want to create money from nothing, then this is your ticket.

In conclusion, all of this works because land is instantly and infinitely sellable, and you can freely manipulate its price while the clock is frozen.
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David
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Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by David »

Computer/Sports Store Demolition
I experimented with finding land-value synergies between different buildings, and found the most potent effect came from the 3x3 Commercial building. Building any retail store nearby resulted in large land value gains in the areas of overlapping influence. Computer and Sports stores are half-priced compared to regular 3x3 buildings, so they were ideal for minimizing my demolition write-offs while maximizing the affected land. However, in my first test, because of the habits gained from Farm Fraud, I placed the Sports Store before buying the surrounding land. With the land value already inflated, it was pointless to buy anything, so I demolished the store. But I noticed something: The land sale was higher than what it had been when I bought the store. Not a lot, so I still lost money, but it gave me an idea: what if build the store next to the Commercial building? When a Firm gets demolished, the land somehow gets sold BEFORE the demolition completes and lowers the land value. :o So...if I can maximize the price difference under the firm's footprint, I can buy and sell the land in two easy actions!
-To do this on a large scale...you can't really. Just one store at a time. But it's quick! Just build it next to the Commercial Building, then immediately demolish it. Earn yourself a nice $2-3 million profit while minimizing your clicking. Apparently you sell the land before the building vanishes, like the magic trick of pulling a tablecloth out from underneath the plates and glasses of a set table.
I would like to give you an update that the dev team has decided to increase the operating capacity and setup and operating costs of Computer Stores and Sports Stores in line with a 3x3 building, after reviewing the comments on the suggestion thread https://www.capitalism2.com/forum/viewt ... =14&t=8249
Hans_Lemurson
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Posts: 41
Joined: Tue Feb 18, 2014 11:06 pm

Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by Hans_Lemurson »

David wrote: Sat May 01, 2021 6:24 am
Computer/Sports Store Demolition
I experimented with finding land-value synergies between different buildings, and found the most potent effect came from the 3x3 Commercial building. Building any retail store nearby resulted in large land value gains in the areas of overlapping influence. Computer and Sports stores are half-priced compared to regular 3x3 buildings, so they were ideal for minimizing my demolition write-offs while maximizing the affected land. However, in my first test, because of the habits gained from Farm Fraud, I placed the Sports Store before buying the surrounding land. With the land value already inflated, it was pointless to buy anything, so I demolished the store. But I noticed something: The land sale was higher than what it had been when I bought the store. Not a lot, so I still lost money, but it gave me an idea: what if build the store next to the Commercial building? When a Firm gets demolished, the land somehow gets sold BEFORE the demolition completes and lowers the land value. :o So...if I can maximize the price difference under the firm's footprint, I can buy and sell the land in two easy actions!
-To do this on a large scale...you can't really. Just one store at a time. But it's quick! Just build it next to the Commercial Building, then immediately demolish it. Earn yourself a nice $2-3 million profit while minimizing your clicking. Apparently you sell the land before the building vanishes, like the magic trick of pulling a tablecloth out from underneath the plates and glasses of a set table.
I would like to give you an update that the dev team has decided to increase the operating capacity and setup and operating costs of Computer Stores and Sports Stores in line with a 3x3 building, after reviewing the comments on the suggestion thread https://www.capitalism2.com/forum/viewt ... =14&t=8249
Oh no! That will drop my demolition profits from $3 million to just $2.5 million! :cry:
What one hand giveth, the other taketh away...

(The exploit is still profitable even using the more expensive buildings, but it's nice to see consistency in retail stores restored)
Hans_Lemurson
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Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by Hans_Lemurson »

Just bought the Banking, City, and Subsidiary DLCs and can confirm that this exploit works there too.

It's less profitable due to the lower land and building costs (and thus lower sales values) in the City Economic Simulation DLC, but it's just a scaling factor of "less money per demolition" rather than "demolishing buildings isn't profitable".

At this point, the ability to just "sell land" instantly with the click of a button seems like an inherently exploitable system.

Maybe I will make a personal rule of "No selling land" in the future.
Viktorian
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Joined: Tue Feb 25, 2020 8:10 pm

Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by Viktorian »

Hans_Lemurson wrote: Fri Apr 30, 2021 9:40 am (Note: Note: the following exploits were done using version 6.8.07 without any DLCs.)
--------------------------------------------------------------------------------------------------------------------
Land Value Abuse:
  • Land can be bought and sold freely and instantly. There is somehow always a ready buyer for land regardless of it's location or the time of day.
  • Buildings can be constructed instantly. A skyscraper can spring into being overnight to the shock and wonder of anybody who went to bed with a clear view out their window.
  • Buildings change the value of the land around them: Apartments, Retail, and Commercial buildings elevate it, but Farms and Mines lower it. Often this effect is subtle, sometimes it is not.
It is a known trick/exploit to buy the land surrounding your buildings before they are constructed so that you can profit from the sudden increase in land's value. The land is bought in an instant, skyscrapers are magicked into existence, and then the land is immediately sold for a higher price to the mysterious and unknown land-purchasing entity. Who are you buying from? Who are you selling to? Why would they buy back the same plot of land at a loss mere moments after having sold it? Nobody knows.
And nobody cares.
It's free money, and that's what matters!

But skyscrapers are expensive. You can offset a lot of the construction costs in this way, but can you truly profit?
Also, if it is to be repeatable, you're going to be doing a LOT of demolishing, so you can't use skyscrapers. You need something cheaper.

My initial forays into abusing the land value mechanics began when I saw that R&D centers placed near HQs caused a noticeable jump in land value in the area between. I was unable to reliably profit from this though, since R&D centers are expensive. The repeated construction and demolition of Research Labs tanked my monthly profits though, incurring massive write-offs even though any losses in my actual cash value were minimal. (This caused a -50% drop in my stock price over the next few months despite no monetary losses, allowing me to more easily buy up stock to consolidate company ownership, but that's it's own separate exploit)

Listed here are the successful Land Value Abuse techniques I've been able to develop.
  1. Farm Fraud.
    My first major success happened when I tried playing the land-value game in reverse: I built a farm, bought the reduced-price land around it, demolished the farm, and then after the land values sprung back to the city default, sold the land for profit . Building and demolishing the farm incurred a write-off of about $1 million, but the impact in the tiles surrounding the farm (up to 4 tiles distance) was enough to cause a land-value rebound worth about $3.5 million, giving a net profit of $2.5 million. If I do that 400 more times I'll be a billionaire! :lol:
    -To do this on a large scale, find the most expensive city on the map, and build a row of farms gapped at least 4 spaces apart. Mass-buy all the land within 4 tiles of a farm, then demolish them all. Sell the rebounded land at a profit. Annoyingly, you have to keep opening and closing the firm menus, and switch back and forth between construction, and land buying and land selling. Is there a lazier method available?
  2. Computer/Sports Store Demolition
    I experimented with finding land-value synergies between different buildings, and found the most potent effect came from the 3x3 Commercial building. Building any retail store nearby resulted in large land value gains in the areas of overlapping influence. Computer and Sports stores are half-priced compared to regular 3x3 buildings, so they were ideal for minimizing my demolition write-offs while maximizing the affected land. However, in my first test, because of the habits gained from Farm Fraud, I placed the Sports Store before buying the surrounding land. With the land value already inflated, it was pointless to buy anything, so I demolished the store. But I noticed something: The land sale was higher than what it had been when I bought the store. Not a lot, so I still lost money, but it gave me an idea: what if build the store next to the Commercial building? When a Firm gets demolished, the land somehow gets sold BEFORE the demolition completes and lowers the land value. :o So...if I can maximize the price difference under the firm's footprint, I can buy and sell the land in two easy actions!
    -To do this on a large scale...you can't really. Just one store at a time. But it's quick! Just build it next to the Commercial Building, then immediately demolish it. Earn yourself a nice $2-3 million profit while minimizing your clicking. Apparently you sell the land before the building vanishes, like the magic trick of pulling a tablecloth out from underneath the plates and glasses of a set table.
  3. Mansion Popping
    Earning money from demolishing your own stores is all well and good, but this only increases your COMPANY's assets, not your personal cash! We all know that the true purpose of your business is to funnel cash directly into your personal bank account, but your salary dribbles in so slowly, and Dividends give some of your profits away to other people. :cry:
    If only there were a more direct way...
    What if...what if you take the Store-Demolition trick...but use it on your personal Mansion!
    Do mansions even benefit from Commercial Buildings? Yes. Yes they do. :twisted:
    Build a Mansion next to your commercial building, and then immediately demolish/sell the land. You of course want to make sure you do this with the building that gives you the largest land area for the lowest price, so Mansion #3 on the list will do. A 3x3 for as cheap as you can get.
    Build it and then demolish it for another $2-3 million in profit (depending on the city). But this time it's your personal cash! :mrgreen:
    Repeat this as many times as your wrist will allow, and you'll earn more than enough money for your carpal tunnel surgery.
  4. Hybrid Method
    Personal profit is great, but if you can make a profit from the Mansion's footprint alone, then how big is the effect on the surrounding land?
    Substantial.
    Buying the land in the overlap zone before building the Mansion earns you a 60% gain in value in the adjacent 2 squares! (though this falls off with distance) All told, I could gain about $15 million in company profit from selling the land after building the Mansion (in a cost 84 city). My company profits when I build the Mansion, and my wallet profits when I demolish it.

    The only downsides are that your company no longer gets to pretend its losing money from demolition write-offs (the expenses are all coming out of your wallet), and it's also a lot more clicking. It's not nearly as quick as the Build/Demolish cycle for mansions alone, but it does create the highest land value spike that I've been seen so far, and it would be a shame not to let your company profit from that.
These are the best techniques I've found so far for exploiting the Land Value mechanics in a way that can actually make some real money.
Aside from the initial thrill of being able to earn enough cash to buy my company 100%, they were boring, repetitive and not very fun. Not sure I'd recommend it to anybody who values their wrists and sanity. But if you want to create money from nothing, then this is your ticket.

In conclusion, all of this works because land is instantly and infinitely sellable, and you can freely manipulate its price while the clock is frozen.
In my opinion this may be the most well known way to earn money in an exploitative way in real estate, although I always found it rather slow in comparison to building a retailing charge and from there expanding vertically.

A fun way to abuse the change of land prices is in connection with the city economic situation DLC.

1. Found a new city (what instantly makes your character its mayor)
2. Through your company buy massive amounts of lands close to the area you want to develop your city on. This has two advantages. First that you own extremely cheap land (as there is yet to be a building on the map) and second that you have significantly more cash available as the money you buy land with goes straight to the balance sheet of the city, thus inflating it.
3. Build your city and take the biggest bond you can take and build even more (the money you got through the land sale makes it possible to take an even bigger one).
4. Wait for a short time to ensure the land is properly valued and pause. Now sell all the land held through your company. The game forces the city to buy it.

The city will go bankrupt and the new mayor of the city (of another party than yours) receives money from the 'government' (100 million if I remember correctly). The new mayor will in high likeliness not be able to solve the debt crisis and go bankrupt again. The amusing thing about this is that there is a chance that your receive the city right back (with another 100 million). If you want to continue playing as the city you can do that just now (and hope to keep it alive) or just let it go bankrupt yet again and hope the AI somehow resolves it.

This works best when you already have some money in your company (I would say at least 100 million) to make it worth the time spent on building the city

No conflict of interest in you being the mayor of the city and CEO of the company the cities buys land from, no.
VRBones
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Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by VRBones »

Glad to see a subforum dedicated to these topics and a post specifically on this technique as it is instawin on day 1. I'm a little disappointed that it is still in the game after several year of this being internally reported.

Here's my analysis from back in version 5.6:

Standard strategy: buy land around the area you wish to build -> Place new building -> Sell remaining land

Broken strategy:
- pause game (Jan 1)
- Look for single building out by itself of a different type to what you want to build (ideally away from housing too).
- buy up land for smallest footprint building (generally 2x2) as close as possible to the isolated building.
- buy up all free land extending 4 land plots in each direction from the footprint
- place building
- sell all purchased land
- bank balance increases above starting balance by ~10%, depending on total free squares.
- rinse / repeat for all isolated buildings
- rinse / repeat for semi-isolated buildings for almost-free buildings
- In open land, build Museum followed by smallest footprint retail for almost-free buildings until market completely saturated.
- Unpause game on January 1 with markets all dominated.

Here is a video of the technique in action: https://youtu.be/OIhqjLT2y0w

Analysis:
When a building is placed, it re-calculates the land price due to the interactions of near buildings. Land price doesn't increase much (if at all) with only one building within influence (4 tiles), but jumps to the highest building modifier if 2 or more are present (modifier drops off gradually the further away from the building). Since the game starts with isolated expensive buildings (EG: Airport), constructing next to them activates the building modifier for all plots of land within 4 tiles of both the original building and the new building.
Choosing buildings with smaller footprint means that there are more tiles that overlap, thus increasing land sell price.
Choosing cheap buildings reduces outgoing expenses, making it easier for land prices to cover the outlay (and even return profit!)
Choosing expensive land (Cities with high real wage rate) increases the land cost proportionally (both buy and sell) to the fixed construction cost, which gives even more profits as long as you can cover the initial land plot purchase.

Optimal placement of a small convenience store next to a completely isolated existing building (EG: Airport with no houses within 4 tiles and almost no roads) nets an increase in bank balance of ~$10M and a retail store with no time spent. Many sub-optimal locations exist in a starting game that return a profit and the new construction, and even more that almost cover the construction cost to allow 100+ buildings to be constructed even before the game starts (save files available, but were version 5.6.11).

Using the same technique you can also build on undeveloped ground by placing 2 new constructions next to each other, with museums and 2x2 buildings giving the best bank balance increase (almost cash-positive).

Because this strategy generates money in 0 time you can effectively win the game on day 1.

Possible fixes:
A simple fix would be to remove land sales. That leaves almost all the legitimate land developer strategies in place that commit to the long term while removing the instantaneous gains that can be made at almost any shop placement. This fix might even be simple enough to be modded in.

For a more realistic fix there needs to be a method of tackling the instantaneous nature of the technique. While the immediate completion of the construction also contributes, you could also argue that the mere announcement of a new shopping centre would have almost the same impact on local property prices as the completed shop, so the instantaneous bump in land price seems thematically correct. Instant building also helps streamline gameplay and feels like it should stay. The issue comes down to the instantaneous resale at full market rate that makes this differ from reality. There is no risk involved in attempting to find purchasers at market value and no capital investment as the land is instantly converted back to cash ready for the next rinse/repeat. A possible solution would be to place the land on the market (similar to selling off apartments) and have it purchased randomly over the next year by the bank or by other competitors. Although this only slows down the strategy, it ties up capital and reduces ROI to a point where other strategies are viable.
Maelstrom Vortex
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Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by Maelstrom Vortex »

VRBones wrote: Sat Jan 22, 2022 5:29 am Possible fixes:
A simple fix would be to remove land sales. That leaves almost all the legitimate land developer strategies in place that commit to the long term while removing the instantaneous gains that can be made at almost any shop placement. This fix might even be simple enough to be modded in.
I think a better idea might be to keep the price changes but stretch them out over time. Problem is this is going to require system resource consumption to do but ideally you lock out any land value changes for one month after a local event has happened such as the placement of a building.. and then.. and only then.. increment any price change to the surrounding land value over the course of a year on a monthly or day by day basis spreading it out over time. This at least makes it more realistic as it emulates buyers having to take notice of the changes and price them in.

I even have code in mind for how this might work. You'd need three key variables, currentlandvalue, oneyeartargetlandvalue, and dailyincrement. Which would be tracked on a day by day basis for every square on the map. Changes to land value caused by user interaction or ai interaction would NEVER hit current land value.. instead they'd hit the one year target land value. The difference between the one year target land value and the current land value would be divided by 365 and that would be added and recalculated daily to the currentlandvalue over time. You could simulate the 1 month lock out by having the increment to the one year target land value only occur after 30 days from the event that would cause the change. This also means that negative property value events would also have time to impact the possible sale price a month to a year out before a sale can be processed. Having to track two additional variables per square may increase save game file sizes slightly.

All land sales and purchases would use the current land value amount.
msd
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Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by msd »

What if you'll put a land for sale and... will just have to wait while somebody will buy it to build something on it? Or will have to sell it back to the city with a big discount (as an option to sell it instantly). Other companies could invest in buying land also. It looks like only player is interested in buying land right now.
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David
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Re: Land Value Abuse: Farm Fraud and Mansion Popping

Post by David »

These exploits have been fixed. Please download the latest patch v9.1.56 from https://www.capitalism2.com/forum/viewt ... f=7&t=9210
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