Water Sims

Noel/Jewell Properties would like to survey residents about the feasibility of offering parcels on water sims.

A water sim is mostly water and only has 1875 prims available.

We would propose to offer 1/2 of a water sim (about 32,500sm) for about 50,000L to purchase. The monthly tier would be about $40 USD. The parcel would have one island (about 4096 sm.) and have about 700 prims available. Obviously, it would be isolated and beautiful and sailing would be available..

Any thoughts?

Thanks,

Disciples Noel

That 50,000L would be the purchase price for the parcel ,right, or would that be 50,000L per month rent?

That would be the purchase price. The monthly tier would be about $40 USD.

Thanks

I wouldn't spend 5k to purchase estate land, much less 50k.

The prices some people are paying for estate land is unbelievable and un-recoverable for the most part.

I've come across this before.
An island owner buys 4 openspace/void sims for the price and tier of a single normal sim.
The have 1/4 the prims and script capability of a normal sim.
That limitation would have to carefully explained to prospects in order to avoid drama if they only run into the limitations later.



One shouldn't expect to pay much more for a section of 'water sim' than one would for four times that area on a normal sim, although some measure of premium might be appropriate for the extra breathing space.

[ insert " 'buying' estate land is nonsense" bit here ]

This is a pretty common business model, and if you are known by customers it is likely to work.

But unless you have a pretty good waiting list, it's not a very bright thing to do.


Watch:

40/mo * 2 for the region = 80 USD/mo when occupied.

295 USD/mo / 4 = region tier, or 73.75 USD/mo.

80 USD in - 73.75 USD out = you profit 6.25 USD monthly IF things go perfect.


Potential downside: 73.75 USD / month per region.

Potential upside: just 6.25 USD / month per region!

Ouch.

* * * * *

Well, that's a little bit good, right?

Say a tenant is late on payment. 73.75 / 30 days = 2.46 USD a day. So if a tenant is late on rent just 3 days, you are now paying *them* to stay there.

Let's say they get bored and leave. Now you have a 73.75/mo expense. Well, so, you can 'resell' it right? Got news for ya. A "new" sim has about triple the ability to 'move' on the market than an "old, stale" one. Welcome to 73.75 USD/mo payments, friend. But wait... you have to buy these in packs of four...

Worst of all, say the tenant starts putting up Andres Serrano and Dolcette art. Well, they just paid $L 50,000 and you *dare* to enforce rules, you evil land baron you? Prepare for the utterly worst SL experience on the grid. Potential downside: any shred of personal happiness, anywhere. Potential upside: 6.25 USD/month profit. Yey.

By the way, $L 50k per half region doesn't pay things off.

8 x $L 50k regions = $L 400k.

$L 400k / 266 * (1-.035) = 1451.13 USD.

1675 for the region - 1451.13 = 223.87 USD loss.

Okay, but you are gonna make that up at 6.25/mo per region, right? If everything goes perfectly: 8.95 months to breakeven.

Unless you slip just once, and incur monthly rates on one of those voids. Real resident answer: you ain't never gonna break even. Evar!

Well, there's only one way. If someone defaults, and you manage to re-sell a region for $L 50k again. You dirty, dirty land baron you! That's what residents will largely think of it. Fact of the matter, though, is that *even* if you do that a coupla times, it won't even remotely cover the aggavation and hours you burned, setting it all up.

So, likely with money and reputation gone, you will look proudly out over the curious, offbeat utopias of other people. Congratulations, land baron... you've made it. I think.

* * * * *

Incidentally, I've got twelve opensim regions myself and they are glorious fun. Fireworks over the Firth of Caledon, and the incredible gathering in Caledon Cymru for our independence day (all openspace regions) made it all worthwhile.

Good luck, and make sure you are enjoying yourself!

It seem like island owners who are in the business of renting land to make money have to continually buy islands before they see any profit? Most of those I've talked to are just covering their tier except for the few I know with 75+ islands.

If I wanted a place to surf or sail, I would would be more than happy with the offer except, as noted, I really have a hard time paying someone for the privilage to rent from them. The whole "buy estate land" is a scam, IMO. The only real owner is the sim owner. Add this to the new trend to "sell" you estate lands and then sell off the sim and I don't feel it is worth the risk.

Sorry, I know this is not what you want to hear. But if there was some way to assure your customers that their buy-in investment will not disappear it would help.

Oooh, Desmond...I love it when you talk numbers to me.

Yeah, totally agree, the word 'buy' should never be used in conjunction with estate land. There is *no* way you can assure people the 'land value' will remain. Because it won't.

Bottom line, for whatever reason, a sim that hasn't landed on the grid yet is worth about triple in people's minds, compared to one sitting there with already established neighbours. You would think it would be the other way! But it's not.

Dreams 'sell.' Realities of situations, even virtual ones, instantly tarnish the dream. Nobody should ever, ever, ever get land with the intent to 'hold onto value' - it's a rare thing. Mainland's not much better - ask anyone who bought last year at about this time.

But wait Des, you once said land in your regions sometimes changed hands for over $L 40/m! Yep, very true. I've seen upwards of $L 90/m in freak circumstances also. People make crazy, insane, emotional deals - and I can't stop them from dealing between themselves in this manner. I'd never *take* $L 40/m if it was offered to me personally - that implies dealing with someone a bit emotionally too... something. And almost assuredly trouble down the line. It would be like taking 100 USD for a cup of coffee... just a funny deal, all around.

The point is: sooner or later these screaming high evaluations won't hold.

There is an honest value to estate land, I think, as rental property. But it's not much. Maybe with a $L 4/m to $L 6/m starter fee up front, something like that, at the extreme upper end and with the very best management. Maybe. $L 4 to 6 - hey, there are some numbers for Lindal.

/me squeaks.
You are SUCH a tease.

To the OP: Seriously...Des is always worth listening to. He knows the math of estate ownership like nobody else I've met, and he's always willing to share.

I'll add my tiny bit to what he's already said: Open water sims are generally worth less on resale, and land on them rents for less, than a full prim sim. People just don't value them as highly, because of the negative impact of the term "low prim".

It's not rational...in fact, if the land is divided and priced so that the per-prim cost is the same as "regular" land, the customer is getting a lot more square meters, and the same number of prims, for the same price. It's a great deal for someone who wants a big spread of land at a bargain price.

IMO, the best use of open water sims is that for which they were originally designed...open water (or open land) recreational areas to be used in conjunction with adjoining full-prim sims. What's an archipelago, if you can't sail your boat amongst the islands?