Wollongong
Elite
- Joined
- Mar 7, 2006
- Posts
- 4,675
- Location
- Calypso
- Society
- Odysseus Unbound
- Avatar Name
- Jerry "Wollo" Wollongong
Just like the real estate prices were artificially high, so they are in Entropia. Don't believe me? Look at the amount of appartments and shops/booths owned by the EstateBroker. This is "limiting supply" in a way that OPEC wished they'd control oil prices. (Just look around in Minopolis)
But, what about our investments, is the common response when someone questions the housing prices.
I was thinking about this. And yes, I do own some small estate, so I too would be hurt if prices would drop. But... as things are now, there is little demand for the estates anyway. So chances of selling aren't as good as onemight hope.
And if the market price would be adjusted to the real value, this would imply we are forced to take our loss. But this loss is actually already implicitely present. I mean, how many people actually believe an appartment is worth US$ 40-50? Sure, there are some people. But look around and you see most estates... unsold. So there are many people who do not own an appartment, but who might otherwise.
Look at the amount of shops and booths which stand empty. I cannot help but wonder, would it not be best if we get the "correction", which many of us know is inevitable, done with? That we take our loss, but in return, get larger occupancy rates?
More people furnishing appartments, for the fun of it, thus boosting the crafting market, thus boosting hunting and mining? More people owning and managing shops, thus increasing trade and improving our economy?
Or alternatively, how about a lease option? You own a shop, and you rent it out for an agreed price. It works in SecondLife, why would it not work here? And if there were such a lease, would this not encourage people to open up a shop temporarily? They might love it, and end up buying afterwards!
All in all, I think our Real Estate market is gridlocked right now. And it needs to be fixed.
Furthermore, I am still waiting for my landclaiming rights, which would come with my CLD.
But, what about our investments, is the common response when someone questions the housing prices.
I was thinking about this. And yes, I do own some small estate, so I too would be hurt if prices would drop. But... as things are now, there is little demand for the estates anyway. So chances of selling aren't as good as onemight hope.
And if the market price would be adjusted to the real value, this would imply we are forced to take our loss. But this loss is actually already implicitely present. I mean, how many people actually believe an appartment is worth US$ 40-50? Sure, there are some people. But look around and you see most estates... unsold. So there are many people who do not own an appartment, but who might otherwise.
Look at the amount of shops and booths which stand empty. I cannot help but wonder, would it not be best if we get the "correction", which many of us know is inevitable, done with? That we take our loss, but in return, get larger occupancy rates?
More people furnishing appartments, for the fun of it, thus boosting the crafting market, thus boosting hunting and mining? More people owning and managing shops, thus increasing trade and improving our economy?
Or alternatively, how about a lease option? You own a shop, and you rent it out for an agreed price. It works in SecondLife, why would it not work here? And if there were such a lease, would this not encourage people to open up a shop temporarily? They might love it, and end up buying afterwards!
All in all, I think our Real Estate market is gridlocked right now. And it needs to be fixed.
Furthermore, I am still waiting for my landclaiming rights, which would come with my CLD.