5 Real Estate Lessons From Game Of Thrones

A fresh season of the epic HBO series 'Game of Thrones' is set to hit the screen. And, apart from reviving sleepy fan forums, it has become quite popular among money managers and real estate investors, generating both investment debates and popular memes.

PropGuide brings you some financial lessons that you can draw from the 'Game of Thrones' series.

A Golden Crown 

Don't let your emotions rule you

Game of Thrones: We all fall into this trap. Viserys Targaryen, the teenage king-in-exile in the popular series, is obsessed with regaining his lost kingdom; and he loses his life in the bargain. But Daenerys patiently conquers half the world. Everyone says, “I'll never do better”.

Real estate: While buying a home, many investors behave like adolescents. But, better bargains might exist elsewhere. If you are driven by your emotions, you take quick decisions that you might regret later. In real estate investing, the right temperament matters more than intelligence. Lose your passion, use your head!

The Laws of Gods and Men

Act as if the whole world is wrong

Game of Thrones: It's a story where the heroes get killed and the scheming – Lord Varys, Petyr Baelish, Lady Olenna, to name a few – win.

Real estate: To spot the best bargains as a real estate investor, you should act as if you are right and the whole world is wrong. If you operate by the same rules as everybody else, you will hardly do better. The underlying principle is simple – if there is a proven path to riches in real estate, people will eventually hear of it (inspired from Lord Baelish!). There would be more investment in those avenues, driving up property prices. When property prices reach closer to their potential value, the profit margins and the yield from such assets would decline. Slowly, the opportunity will disappear. But, when you spot a real estate investment opportunity that no one does, you will capitalise on it before the opportunity withers away.

The Watchers on the Wall

Make the most of what you have

Game of Thrones: “…and a very small man can cast a very large shadow,” said Varys to Tyrion Lannister.

Real estate: A good real estate investor learns the market inside out and is always on the lookout for good bargains. When you buy a property that yields high returns with very little money, you are leveraging your investments to a great degree. The lower your down payment, the more leveraged your transaction. A smart real estate investor knows how to buy much larger properties with the same amount of money. This is a smart decision because if the price of the property appreciates 10 per cent every year, profit margins will be higher on larger properties.

What Is Dead May Never Die

Read a lot, every bit

Game of Thrones: “A mind needs books as a sword needs a whetstone, if it is to keep its edge,” says Tyrion Lannister, who is born with few advantages. He is high-born, but everything else about him puts him at a disadvantage in the society. From an early age, this dwarf man knows his only advantage lies in his mind.

Real estate: The real estate market is meant for avid readers of market dynamics. So, read the market, follow the changing trends; eat, assimilate and digest the drivers of market movements to develop a keen understanding of properties. Your mind, like Lannister's, is your laboratory, and your only advantage.

A Man Without Honor

Never have a debt that you cannot pay

Game of Thrones: House Lannister sticks to the maxim, “a Lannister always pays his debt.” When Tyrion promises a savage hill tribe free weapons, his father is angry at him, but pays the debt.

Real estate: As a real estate investor, always weigh your means and make sure you never overshoot it. Try to fund as much of your home purchase as possible by your own savings. A borrowing from the bank is no sin, but never burden yourself with such a high debt that you might feel stretched. Also measure the value of the property well and make sure you do not pay anything more than it is truly worth.