money to invest thinking about land rentals

hi everyone

i already have a thriving business but want something fun to invest my money in,
ive been thinking about buying land cutting it up in to small plots and renting it out for
people to use for homes, thing is i want to offer cheap land and i have nooo idea how to do it.

now where my shop was at first i used to rent 1024 with 234 prims for L$350 per week,
he must have been making a proffit on it i guess so can anyone tell me how thats done ?

iv'e looked at buying land on private islands and theres no proffit to be made there in
cheap rentals so is the trick to buy mainland as tier seems to be cheaper there ?



iv'e got L$100,000 - L$150,000 i can invest, not really looking to make a huge proffit on it
just something fun to do with it, im interested in hearing other investment ideas also.

I recently made a desision to rent some land to a good friend of mine. I wasnt looking at making a "profit" out of the deal... moreso interested in giving him somewhere to stay to make his SL experience a little more fun. So I checked out the market and I tell you I was shocked at some of the prices that people are offering for cheap rentals. I saw some plots that were $2000L per month for 2048sqm. That doesnt cover tier each month...let alone the original cost for the land itself. I still do not understand how people can sustain this sort of pricing..and am guessing there is something else in the equation somewhere. Perhaps it is just prims not used in a sim or something to that effect.

If you want to buy 2048sqm you pay US$15 plus US$6 (premium membership) monthly, so US$5.25 per week. I rent out 2048sqm for US$4.-- on average. So it is cheaper to rent than to buy. Where is my margin? For my 32000sqm I pay US$125 per month, this is US$8 for any 2048sqm, i.e. US$2 per week. You need a lot of unrented space to make your land attractive and you have vacancies, so if you make break even on running costs it was a good year No way I will ever get a return on my initial investment. That's just for fun. The other message is that renting out makes only sense when you own half a sim or more.

Let's do some calculations...

One complete mainland sim, 65536 m² costs US$195 per month.

Divide it up into 32 2048 m² lots and rent them out for L$2000 per month.

L$2000 per month * 32 makes L$64000, and with a conversion rate of L$280/US$1 (and everyone knows it would be quite a bad estimation) that would mean an income of US$228... roughly.

So that's still a bit above break even.

Truly, when having a private island it is a bit differently. You'd pay US$295 monthly, no matter what. In that case L$2000 per 2048 wouldn't suffice to cover the expenses... Usually owners decide to place a mall or such on some part of the island and rent out the rest. The benefit is that the owner has control over the neighborhood and need not be afraid of someone simply purchasing parcels and devalueing the whole sim with eyesores.

I've been having a lot of fun over at the World Stock Exchange (http://www.wselive.com/). It's an easy way to get in on a share of profits from different SL business models.

Think about this...as unlikely as it sounds: Open Source Server.