Thursday, October 4, 2007

SecondLife land owning analysis after VAT introduction

These days, after Linden Labs sent out emails to us, eu residents, regarding the new VAT policy, I thinked my "second luck" is over. I think the panic had its merit in this. However, after some days, I decided to think clear and analyse the situation.
From the start we need to to know some facts. In SecondLife are two kinds of land and two ways to get it. There is mainland (which is administrated by the Linden Lab employees) and there private region land (which is administrated by various landlords). And also you can rent, or you can own the land.
The most important thing when you want to get land in SecondLife is that you need to know only one thing : YOU WILL PAY FOR IT EVERY MONTH, no matter you rent it or own it. Linden Labs charges tier, the tax that you need to pay every month. So the difference between owning or renting land in SecondLife is that you can choose to pay a great price when you first buy the land and then pay a tier every month or you can choose to rent it, you will not pay a huge price when you start to rent the place and in some cases you will have same rights.
Now, about the land ... In order to own mainland you have to be a premium user, which will cost you a minimum of 72$ yearly, that 6$ a month, that is $7.14 including a 19% VAT. The montly tier for a 4096 sqm plot is $25, that is $29.75. So, after all, a 4096 sqm will cost you a monthly fee of $36.89 .
On the other side, to rent private island land, in which you will have same rights will cost you a L$9000 monthly fee and that's all. L$9000 is aprox $32. So .I'm telling you , for a EU resident is cheaper now to rent land on private island SIM, which has better performance in most cases, better landscaping, and you will not have an adfarm as your neighbor.
So, after all, I see that Linden Labs are trying to shoot their own foot now with this new policy.
That is why I'll not raise fees due to new VAT policy, and if you are interested to get some private island land to build your dream home please visit my office or send me an instant message inworld, my name is Ciprian Newall ! Enough with own advertising , now it's time to judge for yourself !
P.S. Oh ... btw, I'm not charging VAT :)

2 comments:

ChrischunFassbinder said...

Right, so more people go from main land to estate based. Those who purchase L$ to pay for estate rent every month will purchase from LindeX and other currency exchanges. Faster turn over of the L and LL is making 50% more on estates than main land sims (295USD to 195USD). Even with the EU based landlord estate owners who decide to end their services, it just opens up demand to others. Even without LL having a choice on charging VAT, still seems like a win/win for everyone but EU rental estate owners.

Ciprian Neculai said...

I think I loose some money with the VAT now but if I'll get more clients, I'll not feel it after all ...