Buying islands and the L$ devaluation

I have been seriously been considering plunking down the US$1250 for a private island for about a month now. My plan was to rent out half of it and to use the other half for my main place of business and a home. To cover the cost of the sim tier, I had figured I would need about L$60,000 to cover it per month of which half I was willing to come out of my pocket and the other half I was going to try and recoup in rent. Considering I was shelling out about L$23,500 to cover my 1/4 sim tier right now, I figured this was a pretty decent idea, I could get a half sim for not much more in tier and have my own little sim that I could control.

The recent continued devaluation of the L$ is making me reconsider. doing the math, renting out 1/2 a sim (7500 prim) and needing 30,000 L$ out of it, I would have had to rent at L$4/prim, which already was on the high side of rentals. Now with the L$ above 300, that would have to increase to still fit into my plan, which I don't think a lot of people would be willing to pay, even on a nice sim with some value added services.

At 300 the impact is minimal, to the tune of about L$600, but my concern is that if the L$ continues to drop, say to 350, the L$60,000 a month would become over L$70,000. With this uncertainty in the SL economy, I am curious if this is affecting the decisions of other current and potential sim owners. I suspect that private island tier is a decent revenue stream for LL as well, I wonder what thier thoughts are and should we be concerned for the future os SL?

Just my thoughts on the subject, what are yours?

Just let them pay you in RL dollars.

I don't know anyone renting actual land (as opposed to apartments or houses) in Lindens.

Quite a few do. I have my prices set at US$ amounts; L$ can be paid at what ever equates to the US$ amount. I would say about 2/3 of residents pay in L$.

The nice part about it is that everyone else will face the same squeeze you are facing.

So they will have to raise their prices to rent land in lindens too, and it's all the same in the end. I wouldn't worry about it too much. The ones that don't raise prices will dry up as they become unprofitable.

Ya that has crossed my mind too, as well as the fact that I will be paying more for my current land, which will offset some of the difference as well.

As far as renting in US$, its not really an option in my opinion. I want to rent out a small number of large stores to quality desiners by invite / application. I really don't want to deal with taking RL payments on SL land, I would much rather just make a couple of L$ -> US$ transactions on Lindex a month to pay for everything, keep it in my LL account balance and let them take it from there, its just simpler that way.

One thought that this brings up is now that we all have two currency balances on our account (L$ and US$) what about having the ability to transfer US$ directly from one player to another? I'm thinking this isn't done because it would probably spell the end to the L$ as almost all transactions would move to US$. Interesting thought though.

Fair enough. I guess what I should have said was "I don't know anyone renting parcels at fixed Linden prices". That's what I meant, anyway.

I have been, but recently I have found myself rethinking that. I live in the sim I rent out, and have been renting out the rest of the sim, (I had land in other sims but sold it off to cut back on tier charges in an attempt to keep from rasing rent prices) but since the value of the L$ has dropped so drasticly I'm now facing either putting more of my own out of pocket money to keep the sim, or rasing my rental rates. The problem is that since I'm on the mainland, I can't raise my rates too much because there is always someone out there willing to slit the next persons throat to steal a tenant or two. With any luck and I do have to raise my rates, the cut throats will either also raise their rates, or go belly up.
Maybe there should be a meeting of land lords (all big and small) to get on the same page

Everyone will raise their rates. It would be a suckers game to sell at a loss.

And no, there shouldn't be unethical collusion and price fixing between the landlords.

I swear, one sentence you whine like a victim, the next you propose price fixing and collusion.

8 out of my 11 tenants pay in L$. It means having to adjust the prices to the rate, which so far I have managed to avoid.

How much land and how many Lindens are we talking about? I'm not talking about things like some "Pinchprim Towers" with a six prim + door 10x10 apartment and a 20 prim limit for L$50 a week.

Ummm for one read more closely....I am not talking selling, I am talking renting, renting is much more of a USD to L thing, there are land lords out there renting out for a major loss! price fixing for unethical collusion? If you would ever drop by my place you will see that I do not set my prices to make a big profit, in fact I only rent out for enough to cover tier, so first check your facts, all I am asking is for land lords to not try and run each other out of business for what ever purposes.

Just because someone can undercut everyone else because they can afford to, should they?

Tyr,

Sorry if it came off a little too personal, it's not really just you, I've seen several people propose your sort of "meetings" which really bothers me.

And yes, any sort of "arrangement" between landlords would be price fixing. Agreeing not to undercut each other is kinda the definition of price fixing.

While there's no rule against doing it in SL, it's generally considered unethical and it is often illegal in real life.

So when businesses in real life form such companies such as the BBB to protect consumers, to compair idea's on better ways to set up land to be more enjoyable to the tenant, to help newer people ready to get involved (Or already involved) figure how the fair market value of land, the newest products (houses, land tool ect) that are most appealing to customers, it's bad and illegal?

Just because someone proposes a meeting....(maybe I worded it a bit bad since I have been running for several weeks on just a few hours of sleep a night) between business owners to get others (maybe new land lords, or maybe someone who knows a trick to enable others to rent out cheaper then what the land costs to maintain IE ways to get lower tier payments) it's automaticly concluded that the person suggesting an idea is an evil land baron (50 posts at least within the week at leastdescribing land owners as being evil) To me it's sounding like a hate campaign to destroy the credability of anyone runing a business, whether they are renting for a profit, to cover costs, or just for the hell of it as a hobby. Then once someone proposes a meeting they are smeared with no questions asked as to what would be the dealings of a meeting.

Every year, all business get together with other business's and have sort of a fair, showing their new product lines, sharing info on the newest and latest technologies, new ways of operating more efficently. They are normally called trade shows.

The fact that someone bashes without asking is a sign of ignorance, and the original poster actually sounded like he was wining more then what he thought I was, anyways, take it as you will........

So when businesses in real life form such companies such as the BBB to protect consumers, to compair idea's on better ways to set up land to be more enjoyable to the tenant, to help newer people ready to get involved (Or already involved) figure how the fair market value of land, the newest products (houses, land tool ect) that are most appealing to customers, it's bad and illegal?

Just because someone proposes a meeting....(maybe I worded it a bit bad since I have been running for several weeks on just a few hours of sleep a night) between business owners to get others (maybe new land lords, or maybe someone who knows a trick to enable others to rent out cheaper then what the land costs to maintain IE ways to get lower tier payments) it's automaticly concluded that the person suggesting an idea is an evil land baron (50 posts at least within the week at leastdescribing land owners as being evil) To me it's sounding like a hate campaign to destroy the credability of anyone runing a business, whether they are renting for a profit, to cover costs, or just for the hell of it as a hobby. Then once someone proposes a meeting they are smeared with no questions asked as to what would be the dealings of a meeting.

Every year, all business get together with other business's and have sort of a fair, showing their new product lines, sharing info on the newest and latest technologies, new ways of operating more efficently. They are normally called trade shows.

Whats concerning to me is ANY business owner who proposes anything is attacked in here lately for being concered about their business, possibly making a profit, no questions asked and it happens repeatedly. It's almost like a hate campaign created and carefully worded to drive off business owners.....the life line of LL.

How exactly is renting economically beneficial to the renter?

1 They don't pay the money for a premium member ship Economical? Yes

2 They don't pay the money to own the land, only the price of tier, economical? Yes

3 They don't need to pay the money for a house, economical? Yes

4 IF they don't like the place they live, they don't have to keep paying tier while waiting for the land to sell, or sale for cut rates to a land baron, economical? Yes

I'm sure there are more reasons and I'm just not thinking of them right off. If you have any more questions feel free to ask

I think you overlooked this line





Yes it did....and appology accepted, next time ask a few questions before jumping to a conclusion that I'm attempting to be dishonest

"price fixing" has such a negative connotation. I don't think that there's anything wrong with a little bit of "organized incentive adjustment", though. Inflation is the natural result of the currency devaluation that we are experiencing.

The more people who are on the same page regarding price adjustments at the same time, the better. This doesn't affect renters at all, as the actual value of the rental remains fixed. There is absolutely nothing unethical about arranging to adjust prices to combat currency devaluation.

I MAY agree with your moral position if two things could be proven:


1. At leat 99% of the overall market were involved. The SL rentals market is HUGE.

2. The resulting price was actually to the detriment of the public, rather than simply an adjustment to maintain a consistant product value which is resistant to inflation.

Otherwise, I see nothing unethical about this practice. Also, this isn't an RL economy. Within the constraints of the platform, such legitimate practices are totally within the rules.

With the dropping linden the "evil landbarons" will have to follow up with prices (if they arent renting out already)

If we start now an price war you will have left the landbarons with the biggest war accounts, wich will buy up land of the land barons with the lowest ammount of free money to undercut the others

the result will be a few bigg ones sharing the market, and you can be shure THEY will find an agreement.

Oh come on, it so obviously is! With most rental rates based at or around the same level as land fees, the only difference is the fact that you don't have to pay a hefty sum for something that will devalue with time.