Certain spots are already inflated and being sold at much higher rates than they were originally bought at...Deadiam wrote:This is a valid point, and what WILL happen eventually is Keep \ Castle avail spots will decrease dramatically making these good investments. Housing location can also be a huge selling point for a house. I am sure it will be nothing like my pay-to-play days when a house was about to decay there were 20 people farming it BUT I do see location being of some increased house value.DrFaustus wrote:I feel that real-estate is a great investment, given the player base grows at a faster rate than house decay. Everyone needs a macroing establishment, and when/if the server runs out of available spots for the larger housing units (Which I don't think will ever happen) those previously placed houses will spike in value. But basically rares don't hurt the economy...they're worth what one will pay for them, and they merely generate a new form of trade within our already boring economy.mrbojangles wrote:If anyone knows about the spending multiplier this is a great example. Basically, here's the scenario.
Player A has a rare worth 100k, which he sells to Player B (basically creating 100k for him). Player B loses 100k in gold, but keeps an item that has a value of 100k that will never be used, worn out, etc. If player B were to sell the rares he would receive his 100k back and player C would now own the rare. Through these transfers in ownership, a 100k item has created more than it's value in spendable income for the involved parties. This new gold is not inflationary gold because it was not created out of thin air, instead it helps our economy by being invested in various forms (by invest i mean it is spent on items.) Also rares definately increase in value overtime, so it is most likely that Player
B would see a profit when he sells his item, creating even more spendable income for reinvestment.
Nonetheless, the minority of players who own the majority of rares will become very rich.
Where the money is 'invested' is the biggest determinent of how the rares effect our economy.
A) They spend their newly acquired wealth on an expensive home, thus reducing the amount of money supply in the shard, causing deflation. (But at the same time, houses are actually a horrible gold sink, since they create an item that is worth exactly what one paid for it, so if the castle is ever sold, no money is really removed from the economy.)
B) They buy rares that they want, creating basically a closed circuit of money flow.
C) They spend the money on items from other players, like magic weapons, armor, or whatever. This most often gives money back to less wealthy players, but will basically create a complete circuit as well. Money is redistributed, nothing is added, end of scenario.
D) Regs, arrows, pouches, guildstones, etc are the real gold sinks, items that are used up and not re-sold between players. These remove money from the economy and cause deflation.
I'm taking up considerably amounts of land by buying housing everywhere I can place one. And IDOCs are completely being camped by multiple people now...the server is growing...for better or for worse.
