Comparrison cost between TF and Taxed POT Villiage Lot

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

  1. Fenrus MacRath

    Fenrus MacRath Avatar

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    Hi,
    So, I was just trying to figure out the "Break Even" point of upgrading a taxed POT Village deed to a TF POT Village deed. I think my numbers MUST be way off or I am missing something. Please let me know if you see a error in my calculations, as this does not seem right. Let me lay the foundations, If you complete your shroud quest you receive a FREE Taxed POT Village lot, to upgrade that lot to TF in the crown store, is 19,900 crowns.

    At the current crown to IGG exchange rate based on data collected from Phil's Coto Exchange, you can buy 1000 COTOs for 155,000 IGG making a coto worth 150.5 gold at today's exchange rates.

    If the upgrade from taxed village to TF village is 19,900 COTOs that equates to an IGG value of 2,994,950

    That number divided by 1000 IGG (Daily tax on a Village Lot) = 2995 days(roughly) worth of taxes.

    2995 days is 8.2 years If you factor in that the oracle will give you 500 gold EVERY DAY, you could essentially pay 16.4 years worth of taxes by NOT buying a TF lot.

    That blew my mind. Now I understand the shrewd players out there can do it a little bit cheaper, so lets give them a TON of credit and say that the break even point (No Oracle Gold Included) is 6 years worth of taxes.

    Is that correct? or did I take a serious left turn in my figgerin?
     
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  2. Barugon

    Barugon Avatar

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    The daily tax for a village lot is 500 gold.
     
  3. Fenrus MacRath

    Fenrus MacRath Avatar

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    Are you sure? I thought Row was 500 and Village was 1000 . If it actually is 500g/day, that's even more ridiculous. That would be a 12 year break even point.
     
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  4. Botocks

    Botocks Avatar

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    The tax was reduced a while ago. Row is now 250, Village 500. So if you log in every day and visit the Oracle, the quest Village Deed is basically Tax-Free
     
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  5. Lazarus Long

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    Row: 250 gold per day
    Village: 500 gold per day
    Town: 1000 gold per day
    City: 2000 gold per day
    Keep: 3000
    Castle 4000

    Tho Rent in crowns is equal to 60gp per crown.

    But yes the original Number of 8 plus years was correct at the old rents.
    16 plus years to break even on the new one.
     
  6. Fenrus MacRath

    Fenrus MacRath Avatar

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    So my next question is WHY, would anyone upgrade to a tax free deed? That's a lot of paper money for some stinky old fish.

    [​IMG]
     
  7. Lained

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    It's a hassle to remember to pay your taxes and at the moment if you forget you have to completely redecorate your lot.
     
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  8. Lazarus Long

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    Several months of piece of mind not having to login daily and worrying about rent?
     
  9. Duke Gréagóir

    Duke Gréagóir Legend of the Hearth

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    Don't forget that the quest taxed village deed is a lower personal verson and it will cost some cotos to upgraded to a regular version that anyone can use. So we have that cost too.

    Tax free vs taxed math never calculated out. Founder deeds from pledges are worse off with at least 16 years to break even. As port adjusts the taxes lower to appease the crying players (some not all) it will get worse.
     
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  10. GMDavros

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    I love the idea of not having to remember taxes, but that's a lotta cash to dole out for that peace of mind. Perfect timing on this Fenrus as i was considering looking into doing it soon. With the stark numbers in front of me though, i'm not so sure.

    Fenris
     
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  11. Barugon

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    Convenience.
     
  12. Fenrus MacRath

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    So, with the declining need for custom high end player made bows, (Thanks Xen Bow) , My new business will be KID TWIST PROPERTY MANAGENENT.
     
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  13. Barugon

    Barugon Avatar

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    OT: my thing is to use all indestructible gear.
     
  14. Mac2

    Mac2 Avatar

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    I have been saying this for years. This is why I dont bother with tax free.
     
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  15. Stryker Sparhawk

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    Also not doing math in a thread every time this subject comes up.
     
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  16. Aldo

    Aldo Avatar

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    A family of four can buy a chicken and feed all for dinner at around $6.oo. Why would they go out and pay $60 to $120 (without tip) for a meal instead? Face it, there is no logic here, nor will there ever be.
     
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  17. Lazlo

    Lazlo Avatar

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    In some cases it makes sense, even looking at it strictly in terms of cost. If you think a deed will have break even or better resale value, it's obviously better to not pay taxes while you're using it than it is to pay taxes. That's not usually the case these days, but it's not like that's never the case.

    edit:

    Even with significant losses, resale value still changes the calculation quite a bit. For example, (totally made up numbers), if a tax free deed of a particular size costs $300, and the taxed version costs $100, if the resale value at a particular time is 50%, the amount of money needed to be saved in taxes to break even is $100, not $200, because the tax free deed is still worth $100 more than the taxed deed.
     
    Last edited: Aug 5, 2019
  18. dayero

    dayero Avatar

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    There is about 1000 logical reasons to not cook your own meals. For most it's probably bad cooking skills and/or too little time or earning more money on the regular job than what you save by cooking. I dare say for everyone with a full time job and a decent enough income cooking everything yourself is a much more illogical choice (as far as you can apply logic here anyway, considering food prefereces vary so much).
     
  19. kaeshiva

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    The very idea of having to pay an arbitrary tax sink (particularly in a POT) is, to me, insulting. It demands a certain level of commitment/attention to log in and "work" (via whatever means, to earn money) to maintain a residence in a game. Now, I can understand it in the context of NPC towns, since there has to be a mechanism to oust inactives and make spaces available, except that functionality was marginalized by pledge tax-free deeds allowing inactivity for extreme periods (ie a year). The taxation isn't serving its purpose of maintaining a minimum activity level and instead has just become a punishment mechanic requiring you to essentially, work to pay your rent.

    Only using tax-free deeds is not about 'breaking even' for me - I haven't reviewed your math but for me it doesn't matter if it "pays for itself" in 3 years or 6 or 9. One could argue that if you plan to be here for the long haul then they are potentially a wiser long-term investment, but for me its a lot more simple than that. I refuse to be tethered to / committed to a play schedule to pay arbitrary taxes that go nowhere. If they went toward the owner of the PoT I lived in to pay for upgrades, or, in the context of an npc town, if collected taxes went toward some sort of urban improvement scheme (ie, so many people pay tax to live here, and it unlocks additional town features or something) I could see it. Having it go into a metaphorical drain just bothers me on a philosophical level. Yes yes, the economy needs cash sinks, but they are and have always been disproportionately attributed to the social/decorator/crafter player types instead of the fighter player types who actually create the wealth to begin with.

    For me the value of the tax free deed is not only convenience (ie, I don't have to mess with the tax system), not only peace of mind (not having to worry about losing your spot or your belongings being bank dumped) but its about keeping/maintaining control over my own level of involvement/commitment to the game. Logging in to the game should be a relaxing segue into a session of fun, not an obligation - I have enough obligations in 'real life' without looking to arbitrarily create more in the virtual.
     
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  20. GMDavros

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    Agree with you there Kaeshiva. It's just prohibitively expensive (IMHO) to obtain that peace of mind.

    Fenris