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Felix Wagstaff

The Homestead Hoax?

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Can anyone come with an example where buying a homestead private island makes sense?

My lack of understanding is based on the following math:

Homestead: 125 US$ per month - 3750 prims
Full region: 295 US$ per month - 15000 prims

That gives a prim price of 1.97 cents in a region and 3.33 cents in a homestead or close to 60% higher price per prim in a homestead.

Now - considering that the market price per prims in regions is around 2.8 cents per month - Why on earth would one ever want to get a homestead sim? Seems to be a mathematical hoax by Linden Lab to get people that don't have the money fooled into buying something they will NEVER be able to convert into a profit. That is, unless they are able to get their own pyramid scheme going :)

 

Felix Wagstaff
www.felixestates.com

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Really simple.  Not everyone considers the price per prim as the basis for economic decisions.  So having the same sqm and land control at $125 is preferrable to them.

And of course the fact that you cannot own a homestead without first owning a full sim :)

--Cinn

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It makes perfect sense for someone who wants a "full sim" amount of land without necessarily using up all the prims.  For some people, prims aren't even half the equasion.  Location, environment, and intended use are all factors. (^_^)y

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Yes.. suppose there is one born every minute :) I would be scared if you having bought a full region would move on to get a homestead region. That is unless you found one of those that are born every minute.

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Yes.. still seems a bit odd... seen from a pure rental purpose a homestead makes very little sense. But then they are also selling Openspaces - wonder if anyone ever bought that? :-o

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A great many people cannot afford a full 15000 prim island so the homestead is the perfect alternative,i have had a homestead for 3 years now and the prim allowance although a bit restrictive is workable.

During the big homestead debacle a while ago many had to give up their homesteads cos the price was raised,although not as much as LL threatened originally,and many could only afford the original price.

So to answer your Question,it is strictly the price of a homestead compared to a full prim island that people buy/rent homesteads.

And many turn a homestead into a profitable venture,some rent parts of the land,many open a shop

I have a huge shop on mine,it looks more like a mall than a shop

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Cinnamon Lohner wrote:

And of course the fact that you cannot own a homestead without first owning a full sim
:)

--Cinn

Which is sdrawkcab ssa

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I got my homestead back when they originally were Open spaces. It was financially better for me as I couldn't afford the start-up fee for a full sim-still can't- nor was 300 bucks a month doable.. that was 2 years ago...it has been since sold over to three other developers both as part of the main sim and in the final case as itself without the main sim to a developer...she makes about $30 USD over the teir from me but I still couldn't afford the full sim price...I work hard with the prim limits and I'd like to think I've done a very good job...I'm not here for a profit

also it does work great in estates to rent off the homestead as 1 or 2 home properties...I've seen that alot.

 

Dim Sum Garden group banner (750x167).jpg

 

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Openspace is a very viable option for boating enthusiasts who require a near absolute minimum in prims and just enough script time to allow for vehicle scripts and the occasional light house. (^_^)

SL is a luxury.  With each sim type, you're moving from one luxury to the next.  (^_^)

Let's say there's a store owner.  It's a high traffic store with lots of other attractions like lucky chairs.  Obviously a full sim is necessary.  But, the sim/store owner wants their home near the store.  Not wanting to deal with the daily grind and lag of the store sim, this person wants a second adjacent sim.  It'll be a personal, low-use, residence.  A place to call home.  A "homestead" for lack of a better word. =^-^=

Now this person wants to build an art installation.  It requires a whole sim, but, doesn't expect to use a ton of prims and almost nothing is scripted.  A second homestead is in order. (^_^)

But, our store/sim/homstead owner is also a sailing enthusiast and wants a lot of space that's wide open to get the feel of being out in the sea.  Nothing will be built there.  It'll be left quite clear.  Just open space... Well, a couple openspace sims will do just fine. (^_^)

Are you saying you want this store/sim owner to buy FIVE FULL SIMS? (o.O)

Sorry.  Not seeing the hoax.  I like my full sim.  I have 3 sims worth of content on it thanks to careful building practices.  I also like my homestead.  It technically belongs to a friend who needs someone with an estate to carry it.  They have it set up with a quaint little village with a small store and cafe.  And, hey, keep your friends close, right?  Though, while I have no need or want for an openspace, I'm sure someone will.  So, no skin off my back.  I just won't buy one.  Easy.  (^_^)

So silly. =^-^=

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If the prim count is your only criterion, you're best off buying an entire mainland sim, which gives you 15k prims for the bargain price of $195.

The homestead tier makes more sense if you consider the land mass, the view (surrounded by the ocean, no ugly builds on adjacent parcels or sims), the landscaping possibilities (as opposed to the limited landscaping options in mainland regions), the privacy and the estate management tools (again compared to mainland sims). You basically get all the nice features of a full private sim, except the lower prim count.

But I agree that $125 is too much. I'm still paying $95 for my homestead sim, and I'm not willing or able to afford a higher tier. If LL stop grandfathering older openspace-turned-homestead sims, I'll have to sell mine and live in a skybox in my commercially used full region.

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When one has a nice full sim (which you need to own to have a homestead) but want to have a bit more open space with no need for a ton of prims - say for a beach.

When one wants to rent quiet residential space out.

When one wants a private space but does not have $1000 to buy a new full region and is too ignorant to buy a "used" sim

There are three.

The real hoax is people "selling" full sims when they are just renting them out.  It's not even a hoax, it is outright fraud exploiting new and ignorant people who assume they "own" the sim.  Yet LL does nothing about it because, garsh, that would piss off the real "target market" of LL, which is major land owners who rent out land to others.

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Felix Wagstaff wrote:

Can anyone come with an example where buying a homestead private island makes sense?

...
 considering that the market price per prims in regions is around 2.8 cents per month - Why on earth would one ever want to get a homestead sim? Seems to be a mathematical hoax by Linden Lab to get people that don't have the money fooled into buying something they will NEVER be able to convert into a profit. ...

 

Hey Felix -

Its a good question.

The answer is if you know the history of how "homestead" sims came to be called "homestead" sims it makes a teeny more sense but not much more.

Once upon a time they were available for $75 per month.  Then they went to $95 per month.  Now they are $125 per month.

It does make sense that for the larger land mass per prim that LL would charge a tier premium, but the tier premium as it is now seems excessive.

The real issue from the stand point of someone (like me or you) who wants to get Homesteads and sublease them for profit, is the large number of Homestead sims on the map at the $95 per month rate.

This is keeping the market pricing for Homesteads so low that it is very difficult to compete if you have to buy a new one.

Good luck!

Lizard Howl

Segarra Estates Owner

 

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Lizard Howl wrote:

 

The real issue from the stand point of someone (like me or you) who wants to get Homesteads and sublease them for profit, is the large number of Homestead sims on the map at the $95 per month rate.

This is keeping the market pricing for Homesteads so low that it is very difficult to compete if you have to buy a new one.

 

 

It (and the same applies to full sims as well) also protects the existing major land owners from new competition, hence preserving the stability of LL's short-term cash flow at the expense of broadening its user base and promoting their own long-term viability, as new users who wish to get into the land game either fail and assume it's because SL "sucks" and "you cannot make money here", and so leave, or they do a little research ahead of time and realize the deck is already stacked against them, so why bother to try, and so leave.  It's very difficult to enter a market which is essentially a commodity with infinite supply, yet you start with greater than a 30%-50% cost disadvantage.

And LL insists it does so much to attract and retain new residents - PUH-LEAZE!

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Tolya Ugajin wrote:

 

Lizard Howl wrote:

 

The real issue from the stand point of someone (like me or you) who wants to get Homesteads and sublease them for profit, is the large number of Homestead sims on the map at the $95 per month rate.

This is keeping the market pricing for Homesteads so low that it is very difficult to compete if you have to buy a new one.

 

 

It (and the same applies to full sims as well) also protects the existing major land owners from new competition, hence preserving the stability of LL's short-term cash flow at the expense of broadening its user base and promoting their own long-term viability, as new users who wish to get into the land game either fail and assume it's because SL "sucks" and "you cannot make money here", and so leave, or they do a little research ahead of time and realize the deck is already stacked against them, so why bother to try, and so leave.  It's very difficult to enter a market which is essentially a commodity with infinite supply, yet you start with greater than a 30%-50% cost disadvantage.

And LL insists it does so much to attract and retain new residents - PUH-LEAZE!

 

Tolya -

I know I'm not going to change your mind as I can see clearly why you think the way you think and also that your mind is 100% convinced you are right and anyone who thinks differently than you is wrong. That's fine, you might want to just skip over all my posts. ;)

Having said that, and with the utmost of compassion in my heart, I disagree with your conclusions.

Yes, I agree it is difficult to compete against other businesses if you have to over come, as you put it, a 30%-50% cost disadvantage.  Difficult, but not impossible.

The truth of the matter is the reason why "new users" who enter the land game "fail" is because they do not treat this like a business.

Read that twice for emphasis.

If you treat this like a hobby you will quickly learn just how expensive a hobby this can be.

SL does not suck.

The deck is not stacked against you.

Yes you CAN make money here.

Someone who has the time, energy, skills, and business savvy, can come into Second Life today and build a profitable Estate.

Yes the land business is very competitive.

Yes some land dealers may be able to charge less than you want to charge.

Ultimately the SL land business is just like any other business.

If you treat it like a business you will find your market niche, provide good value to your customers, prosper and thrive.

Have fun, and good luck!

Lizard Howl

Segarra Estates Owner

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