Thursday, February 22, 2007

Go East, Young Avie

Well, now that First Land is cancelled, the Great Eastern Land Rush has begun.

Sims such as Midar Fell are in auctions for up to $USD 2801.00 and only 20 hours to go, boys and girls! Chopped up sims in 512 sq m plots are selling for around 8k L$ each on average.

I guess I just don't get land speculation.

If you spend $2800 USD on a sim that you then split into 128 parcels of 512 sq m,
which you then sell at approximately 8k L$ each,
are you not selling land that you bought at
($2800 USD/128) ~ $21 USD and change
for approximately $20 USD
(assuming a current exchange rate of $4 USD for 1000L$) ?

Seems to me this bubble is about to burst and I aim not to be holding the landbag when it does.

Irrational exuberance, indeed.

Edit: OK, I think I do have a mathematical blind spot! The volatility of the Lindex doesnt help!

Turns out you'd be selling land at @ $30 USD that you bought for @22 USD.

That does seem a bit clearer. :D Plus, it's still the lowest priced land around.

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