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Jonny Kyrie

how do land owners make money

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 If you search the forums there are great threads about "how to make money in Second Life Real Estate".  I would like to add to that: The people who are currently earning significant amounts of money in Real Estate are most likely working really hard, and they have to have good knowledge and skills.

If you enjoy the hunt for "good land" and like to take a bit of a gamble, turning land around in SL can be a great hobby, but don't give up your day job....

Sak vid pa kanp. 
An empty sack can't stand up.

 - Haitian proverb

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I have been wondering about the same question:

 

The financial circumstances about rented or owned land are:

 

If you are a premium member and own land at 1024 sqm, you have to pay tier to Linden Lab =  5 USD per month PLUS the buying price for the land PLUS premium membership (USD 7,44 - 12,50 per month).

 

If you are NOT a premium member, you just have to pay USD 5,55  for 1024 sqm land per month to the estate company who owns the land.

 

It seems strange to me, and I can't figure out how this business can give more income than expenses for the estates companies.

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Lizard's link mentions that people are buying at below cost and then renting at cost, thereby still making a profit. I do not think doing real estate on a small level is going to be very profitable, although it is possible and happens all the time.

Land can be bought for less than one linden per meter and then sold at a linden or more, but it may take time and these are usually small pieces of land.

Also, in your Premium Membership layout, don't forget they pay you 1200 a month in lindens, with an initial 1000l bonus.

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Thanks for explanation, yes I can see that. But I think it must be hard work before the money comes rolling in :-) It must be worth the effort in a way, since there are so many estate agents offering land.

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I know some small scale landlords who do not make money, they rent bitsof their land to friends and community members at just above cost of those prims, and are quite happy using on the rest themselves. This gives them possibility they may make money if a place gets all rented up, butthey are really just enjoying second life with chosen neighbours! so it may be wise to ask a few landlords how they make money, sometimes the answer may surprise.

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here is the forumula -

buy some land

rent it out for more than it costs you

repeat the process.

You can do this with Mainland or Estate land.

The key is keeping things in profit.

1. Mainland rentals.  Mainland rentals are probably the easiest to start with, especially with Mainland prices being dirt cheap.  If you have a Premium Account your first 512sqm of tier is included.  So buy a 512sqm of land and rent it out for whatever you can get for it.  200L/wk, 225L/wk, 250L/wk - it really doesn't matter.  Those are all good rental rates, and whatever you get it is basically 100% profit for you.  Then you can take those profits and expand by buying more land and renting it out.

2. Estates.  With Estates it is a little bit different because you are on the hook for a whole island at a time.  An island (full prim sim) costs $295 USD per month.  There are different ways to rent it out for a profit, but what most people do is cut the island into smaller parcels.  The closer to 100% occupancy you are, the more money you will make.  Be careful.  If you have too many vacancies you can lose money on your island!

There are always going to be people who sell land for below market rates - either because they got a better deal from Linden Labs, or they are just providing land to their friends, or whatever.  That doesn't mean you can't make money as a Second Life landlord.

The example I like to give is this - does Walmart charge less for things than the corner store?  Yes.  But, how many corner stores are still in business?  Tons.  They charge more for the same things, yet they stay in business and turn a good profit.

Hope that helps!

Lizard

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