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Effectiveness of Housing Price Controls


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39 minutes ago, Power said:

And guess what if there more houses on the market people cannot get away with charging as much because people will actually have choices. Right now the incentive is just to hold a house for 6 months until you can sell it for what you want again. 
 

This causes houses to go on the market more infrequently and makes houses even more expensive since they are even more rare then they already are. You are right characters often get cycled through fast but when you create the incentive for people to hold onto houses for 6 months guess what they are going to do?

What do you think is going to happen when you create the incentive for people to sell houses for any price they want without a time limit? You think people aren't going to pay ludicrous prices? They will. I've been a part of two communities where this has happened and completely CRIPPLED the economy to the point they had to literally reset the entire thing and it is already happening here, just slower because of the price controls. Taking the lid off would just slide us down that hill even faster than its already happening.

 

Having more houses on the market only works so far because we don't have an unlimited amount of houses. We will reach a point to where there are no more houses again and then we're right back where we started, only with exponentially higher prices. Supply and demand won't go away just because there's no time limit or price controls, there's still only a finite amount of houses. Instead of holding on to them, houses will sell incredibly fast to whoever is stupid enough to spend the money on it. You're not fixing the problem. You're making it worse.

 

tl;dr - We will have the same problem as we have now, with exponentially higher house prices. This does no good for the economy and only serves to cripple anyone who's not a millionaire. That $200,000 starter check will mean nothing. People will lose motivation to even try for a house or become mindless grind robots just so they can try to afford one.

Edited by Brofessor
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On 4/1/2022 at 3:04 AM, Power said:

My suggestion is remove as many restrictions as possible to make it as quick as possible for players to sell their houses for whatever price they want. You think this server is the first entity ever to think of the idea "things are getting too expensive lets set the price ourselves" It doesn't work. Let me know what you think.

 

This makes it easier for people who want to make a lot of money off their properties, at the expense of someone else. We should leave these rules as they are.

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41 minutes ago, mj2002 said:

 

This makes it easier for people who want to make a lot of money off their properties, at the expense of someone else. We should leave these rules as they are.

But they can already do that. All they have to do is wait the 6 months. By your logic these houses would be selling for insane amounts for the ones that are coming on the market All this does is reduce the frequency houses are on the market. When you have straight price control you have the situation we had before they removed the cap of prices where houses almost never get on the market. Houses come on the market now but desirable houses are selling 2-4 million which I think is reasonable giving our economy and the demand of houses vs supply. And also there are a massive supply of Apartments it will always keep House prices from going absolutely parabolic. 

Edited by Power
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10 minutes ago, Power said:

But they can already do that. All they have to do is wait the 6 months. By your logic these houses would be selling for insane amounts for the ones that are coming on the market All this does is reduce the frequency houses are on the market. When you have straight price control you have the situation we had before they removed the cap of prices where houses almost never get on the market. Houses come on the market now but desirable houses are selling 2-4 million which I think is reasonable giving our economy and the demand of houses vs supply. And also there are a massive supply of Apartments it will always keep House prices from going absolutely parabolic. 

 

House prices regulate themselves in a way as well. Sure, you could put your house up for sale for 50 million; but nobody would be able to afford it. You can therefore only sell houses at a price somebody else could actually afford. People have put shacks in Sandy Shores up for sale for a million and nobody bids above like 300k regardless.

Edited by Illusory
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I mean it all boils down to the same old supply and demand argument. Demand for standalone houses will always outweigh the supply. Not everyone keeps their houses because they can't break even, but because the demand is so high with the supply being so low they're not gonna be able to get into another standalone house if they sell. There's more players wanting them than there are actual standalone houses. 

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23 minutes ago, Cocaine Capital said:

I mean it all boils down to the same old supply and demand argument. Demand for standalone houses will always outweigh the supply. Not everyone keeps their houses because they can't break even, but because the demand is so high with the supply being so low they're not gonna be able to get into another standalone house if they sell. There's more players wanting them than there are actual standalone houses. 

Yep. This problem isn't going to magically go away either if you remove price controls and time limits to sell for any price you want. We're going to be sitting in the same boat, but with exponentially higher house prices. I don't see how that's good for anyone, considering you get $200,00 to start and desirable houses are selling for 2+ million. The grind to even afford a house will only get worse as time goes on. You can't fix the supply problem, no matter which way you try to tackle the issue.

Edited by Brofessor
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Can’t wait to have my property violently stripped away without a refund because of work, only to be hit by a multi-million price tag for a new property while only making 40k a week. 
 

Who is the housing market even designed for? 

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9 minutes ago, eTaylor said:

Can’t wait to have my property violently stripped away without a refund because of work

 

I thought they gave refunds now?

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On 4/1/2022 at 7:44 AM, Chuckles said:

The easiest and most effective solution would be to remove the ability to sell the properties for whatever they want after an XYZ amount of time. This is the reason properties are held on to rather than sold because people are willing to sit on them for months if it's going to make them a couple of hundred grand extra. I don't see the benefit to it at all and it's what is currently making the market so inaccessible. As far as a weekly offline tax goes, that won't really be a deterrent because after sitting on it for so long they'll just add whatever they lost in tax to the overall sale price.

 

If there is no reward for holding on to properties then there is no reason to hold on to them. Another problem is that people are willing to pay these ludicrous prices which adds to the inflation if everyone's buying high and selling high.

 

 

Agreed, we shouldn't be incentivizing people to hold onto properties. The resale price should be capped out at like 125% original market value. The free market doesn't really work here since there is no way to really combat the short supply on standalone houses, we cannot simply build new housing developments to meet demand, and therefor demand can never be met. So the best we can do is try and make the market at least somewhat of a fair playing ground with price controls in place.

Edited by TheSenate
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Make Vinewood/Rockford houses non-tradeable. Set price to I dont know what.. 3 million and so you can only return it to server for like -50% loss. Add a warning text that it must fit your character or it can be removed from you without a warning. 🤷‍♂️

Edited by Roza.
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