Scion's Tip # 9 - Net income is what counts.

With the Re-Start we have seen a number of interesting changes.

One that has a profound effect on the game play and strategies is the introduction of an income tax that is bassed on the number of streets that you own.

Essentially after the 5th street each additional street will raise your income tax rate by 3 % so with 10 streets your income tax will be 15% and at 38 streets its 99%!!!

What this means is that there is a point at which adding another street will actually decrease you income. For instance if we had a portfolio where all streets provide a pretax income of exactly $10M then 19 streets is the optimal number...after tax your net income is $110.2M If you add a street then even if it also earns $10M at the next rent calculation then your total net income will drop to $110M

Corollory: When adding your 20th street it is probably safe to assume tha you will not be able to get it up to the same average income of your other 19 streets in one rent period. If not then the losses are even more dramatic.

So it would seems that aiming to hold 19 streets is the best policy for maximising your net income. Once you have 19 streets then your policy should be to seek to maximise the average rental income across those 19 streets, either through redevelopment of existing buildings or through replacing the streets with higher earning streets all together. (as yet its too early to tell which of these is the better long term strategy)