The current enrollment allows people to create a bank of alts, which can later be upgraded to a premium later. And a paypal account can be had with just an email account.
At the current rate of ~ 7K per 512 sqm that ~ $26USD
For $9.99, an alt preimum account get $2200 linden (4 weeks plus 1000 bouns) of that 512 would be used to buy the first land. once the land is sold/ transfer to a group and the stipend milked the account would be cancelled.
So 9.99 gets you $7000L worth of land plus 1688 $L total 8688L ~US$32.2
This is also the reason why it would not cost a whole lot of L to push the market up: instead of flipping the high cost 10L+/sqm land, they are swallowing up the 1L/sqm land.
A gain of more that 200% in one month. where else in the world can you get an investment like this?
This is just part of a bigger picture. It is a labor intensive procress, and in the previously probably deem not worth the time. However the changes in recent months is forming a perfect storm: PI price increase, increase press coverage, better SL economic performace.
Just putting things up for discussions.
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Land Market analysis - what happened!? |
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Kelly Nordberg
Registered User
Join date: 12 Mar 2006
Posts: 116
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12-18-2006 09:37
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Kelly Nordberg
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Smith Peel
Smif v2.0
Join date: 10 Jan 2005
Posts: 1,597
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12-18-2006 12:36
Well who wouldn't want to live in Blingtard?
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cinda Hoodoo
my 2cents worth
Join date: 30 Dec 2004
Posts: 951
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12-18-2006 17:07
I think the land sharks will keep up this high priced land till the credit card bills for tier come in, hmm id say around Jan 15th
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Kitty Barnett
Registered User
Join date: 10 May 2006
Posts: 5,586
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12-18-2006 18:49
Of course, LL has an incentive not to increase supply. If they can stabliise prices here then suddenly all those sims they auction off are worth twice as much as they were two weeks ago. LL have the most to gain or lose on land prices not land barons eking out 1 million dollars over 5 years and ten employees. LL are also the ones that completely control the price by controlling the supply. That said, of course a land baron that deals in both mainland and private sims has an interest in keeping mainland prices up if they can. It makes their private sims far more attractive and there they get to profit from both the land and the tier. |
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Stephen Zenith
Registered User
Join date: 15 May 2006
Posts: 1,029
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12-19-2006 02:35
I'd think LL has far more to gain by having land prices be as low as possible: 128 premiums owning a sim using their "free" 512m² tier bring in $768-1280 US a month per sim. That said, of course a land baron that deals in both mainland and private sims has an interest in keeping mainland prices up if they can. It makes their private sims far more attractive and there they get to profit from both the land and the tier. The Lindens sell most of their new mainland land at auction. Higher land prices across the board result in barons being willing to pay higher prices at auction, which results in much higher profits for the Lindens. This can be seen by looking at the prices for full sims in the completed auctions page. 2 months ago a new sim would fetch a little over US$1000, a month ago they would fetch around $US1500, now they all go for well over $US3000. The Lindens now make over $US2000 more per sim. |