A Solution to the Real Estate Problem

TheDiamondTiger

Cyber Bullied
Maggot
Feb 19, 2017
1,294
1,531
113
Diamond Cave, Quartz Forest, Kepler 186f
In my opinion, the problem is with circulation. A popular way to make money is to buy a plot, then turn around and resell the same plot for more. It's easy. If you've got the money to sit on it, profit will come eventually for minimal effort. Profit margins are boosted by a crazy amount if you're able to keep track of when inactive plots go up for sale, as their original prices are stupid low compared to the market average at the moment. This cycle of inflation is quite concerning in the long run for two reasons:

1. If left unchecked, there's really no way to stop it. Sure more plots could be regioned, in an attempt to increase supply in accordance to this fabricated "demand." But that just adds more currency to barter with in the case of the real estate agent. It's not a problem that works itself out organically because there's still a demand for plots/houses from the steady stream of incoming players. If the gap widens too much, it might discourage new players from playing and lose them. Sure not everyone is dying to get their own place, but it's definitely one of the key aspects of the server in my opinion. Now this isn't just an economics issue, but a server health issue in a way.

2. Economically speaking, it kind of contradicts an ideal environment. Ideally, a rough formula for making money in an ideal game situation is Skill x Time = Profit. The more skill you add or the more time you put in is rewarded proportionally. There's also consideration for creativity, as that is often times a separate factor from Skill. Before anyone says it, I fully realize that real life doesn't always work this way. Problem is, the concept of "having money makes money" isn't an ideal game mechanic. Because using wealth/awareness of inactivity to buy property in order to turn around sell it doesn't add anything to the environment. Whereas someone running a shop adds items people need, nothing is gained here. Playing the property game isn't as much productive as it is a form of playing the system.
The top paragraph ignores supply and demand; granted it does have simple merit, but the economy is supposed to be tailored to prevent a simple boost. The issue isn't circulation, its competition. The economy doesn't foster competition because there is no secondary options, there needs to be multiple people selling similar properties for competition to exist and benefit the consumer.

Atleast in your second paragraph it restates the fabricated demand I had been preaching, but you are ignoring that not all new players stay and that old players leave. The issue is not an increased demand (besides the fabricated), but a lock on the supply by those who do not play.

This third paragraph bothers me the most because capitalistic financial systems do not consider creativity nor skill; resellers typically boost a price simply by 2(at cost), which is sensible because a farm isn't the best place to sell produce; here though at cost is much more simplified as the farmer is typically the seller, so prices can be brought down much more and the at cost is just the price of getting the item with time and effort factored in. A loaning agency would allow at cost to be met without this "having money makes money" needing to be a game mechanic. Now it is true that flipping a property without any work doesn't add anything, so an auto appraisal plugin could reprice plots using simple equations and would be very simple to code (one could even factor in blocks by their shop prices), (note: design would be more difficult to equate, unless the program had schematics to consider, but simply importing the size of a region would be fine (and simple)).
 

Powerfull

Well-Known Member
Former Staff
Verified
Powerfull
Powerfull
Citizen
Mar 22, 2017
2,012
4,754
113
Well, as I see it, this is just progression of time- if you look back in the past, even only 50 years ago, the value of one dollar has changed. To everyone’s point of what is ‘rich’ that changes with time, as it should. Every extra dollar earned from the server is money that is “printed” irl, or made. The value of one dollar used to be the value of a dozen eggs, but now the value of a dozen eggs may be three or dollars (USD). I feel like the economy has not ‘collapsed’ or become broken, but I do agree that it has changed, and I do like the idea of having a tax, as it would (1) add a larger value than a 1 time purchase to a plot, (2) it would add a value to not hoarding plots, and (3) it would decrease the hoarding of plots. Hope people agree, make sure to contradict or comment what you think!
 
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