Comparrison cost between TF and Taxed POT Villiage Lot

Discussion in 'General Discussion' started by Fenrus MacRath, Aug 5, 2019.

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  1. Fenrus MacRath

    Fenrus MacRath Avatar

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    That is incorrect, the opportunity cost in USD at todays rate for 3 Million IGG is at least $110.
     
  2. mystarr

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    True, but now we are speculating on the future value of IGG. Anytime we start bringing in conversion rate of game items to $ we are speculating on future $ value and following the current trends the smartest move it to sell everything now.

    I think you are correct to speculate that the value of the IGG is going to continue to fall. However, as the $ value of IGG drops, the IGG value of COTOs is going to continue to rise.

    I would say holding onto IGG gold is a bad idea. IGG is just going to drop in value unless they implement crazy gold sinks.(Sell it for $. Use it to buy COTOs. Use it to buy something that you think will hold its value over time.)

    Selling the gold gets you $ now, but means you have to spend IGG that you wouldn't have to spend if you bought the tax free deed. That gold you are spending has some value but once again now we are speculating on the future value of IGG.
     
  3. Fenrus MacRath

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    I am not speculating about anything. I can get $110 USD Right now , today for 3 Million IGG, or I can spend 3 Million IGG to purchase enough Cotos to upgrade my deed, also right now today.
     
  4. mystarr

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    The speculation part comes in when you try to decide which of those options will have been more "beneficial" in a year.

    If your desired outcome is to maximize real world cash then your smartest move is probably to sell everything you own in game immediately.

    If you haven't already sold everything, then I assume you still personally value some of the things you have in game more than the cash you could get from selling them.
     
    Last edited: Aug 7, 2019
  5. Spungwa

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    Economics. Not a troll at all, I agree with your conclusion, just not the economical modelling you used to get there.

    The numbers you were quoting are so crude that I would not call it economics.

    But as I said in my original post, you have to make so many assumptions that an economic evaluation is basically invalid.


    Regards
    Spung
     
    Last edited: Aug 7, 2019
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  6. GMDavros

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    I'm amazed this thread has gone on as long as it has... oof. Shouldn't you all be complaining about UT or nerfing or something?

    Fenris
     
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  7. Fenrus MacRath

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    [​IMG]
     
  8. Fenrus MacRath

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  9. GMDavros

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  10. Spungwa

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    Last comment from me.

    I put a reasoned agreement why I think your analysis (not conclusion) is floored.

    You accuse ME of trolling......
    Reply with this b******t.

    Spung
     
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  11. Fenrus MacRath

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  12. Fetid SirDidy

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    Why you gotta make me feel bad about grabbing up some tax free deeds? :)

    I did consider the cost recovery period when I upgraded though but honestly just didn’t want to have to think about it and figured I’d just spend the gold anyways. Plus it was something to work toward. I suppose if i was doing rmt, I would have just sold the gold but I haven’t touched that aspect of the game yet. I do have a sub but everything I have acquired has been via in game gold.

    TF deeds can still be upgraded if that makes any difference.

    Like another thread pointed out, all anyone really needs is a row lot.
     
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  13. Astirian

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    TF for me all the way. I don't think I'd put up with the stress of having to pay tax. Frees me up to worry about other in-game projects. :)
     
  14. Feldon Grimshaw

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    i'm in the camp of "i did it because it's a convenience and peace of mind thing". i'm still doing it. i have several properties done and several properties in the process of converting, and i can't wait until the final once goes TF and i don't ever have to worry about daily taxes again.
     
  15. Aetrion

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    He's not wrong, tax free lots are kind of a bad investment. On the other hand, the biggest reason why I don't use the housing system in SOTA is because when I get bored or want to play something else I don't want to have to still log in every day to talk to the oracle and what not, so a tax free deed would solve that problem.

    Reality is that this game will probably no longer exist by the time tax free lots becomes a better investment than simply selling the cotos and renting the lot.
     
  16. Lord Andernut

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    Taxes are a pain, I don't like them, so I prefer Tax-Free.

    OP didn't touch on residual value either. I know there may be depreciation, though the market correction caused by Portalarium's prolific deeds seems somewhat settled.

    But with a taxed deed you pay every month in order to hold it for as long as you wish, and then you can choose to sell it. This is a form of a guaranteed loss on your purchase, unrelated to whether deeds went up or down in value.
    A tax-free deed you pay nothing each month, so when you sell it, you don't have that guaranteed tax-based loss.

    I'm not saying one should choose TF over Taxed, just that time to payoff (TTP?) is not necessarily based in years. If you buy something for 100, keep it for a year, then sell it for a 100, you're ahead of buying something for 50, paying taxes for a year, then selling it for 50.
     
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  17. Sea Bear

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    I have been pretty diligent about acquiring scepters or the years because I do not like paying taxes for the same reasons as others have mentioned and I also dislike paying high prices for TF city plus lot deeds.

    Never done the math on it but I enjoy owning several POT Only Castle Keep and City Lot Deeds for community use within my POT.
     
    Last edited: Aug 22, 2019
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