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Effectiveness of Housing Price Controls


Power

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We have other ways of enforcing properties especially those holding properties and not putting them to use. It's not something Property Management has been on top of but something very soon that we will start monitoring and controlling if players are utilizing the property, if they are not then it's deemed an inactive property and they will end up only getting half of the market price back.

 

As mentioned above, we take the regulations off it'll become the same concept/economy a vast majority of us have experienced. The regulation originally was x3 of market price setting the limit, players weren't happy with not being able to sell for higher we've adjusted that to avoid the house flipping and those just hoarding properties. Honestly, there is no "perfect" way to ensure it being fair aside from regulations and making sure players are using the properties. We don't regulate it then it becomes free reign and you'll see Grove Street houses going for millions. House availability has always been a concern and will remain Property Management's top priority hence why we've moved to monthly openings for our houses and property requests in which has drastically helped since then.

 

We do have property reports if you suspect someone just hoarding a house and not using it, it only takes at most 5-10 minutes for us to determine if the house is active or not. Not using your property is considered inactive,

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10 minutes ago, Roza. said:

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. 🤷‍♂️

 

You can't sell a house that's been given through housing requests, not the newer requests anyway. You can only sell them back to PM when you're finished with them. The houses you see in the properties section are ones people have gotten almost years ago and/or ones that have been bought or traded through different people. Most Vinewood/Rockford ones are barely owned because most people can't justify owning a huge mansion for their character. I've never seen a Vinewood/Rockford mansion up for sale and most I've come across were gained through house requests.

 

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You will not be able to sell the property. If you do not want the property back within the first three months of receiving it, you will get 50% back. If you wish to receive it after actively utilizing it past three months, or wish to change the character/concept - you get 75% back. Furniture worth in full.

 

 

You're requesting it for the character you're on. You won't be able to give it to a friend, a family member, or keep it when you name change/CK.

 

Edited by tired!
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8 minutes ago, Roza. said:

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. 🤷‍♂️

Already a thing! They are exclusive to house requests.

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4 hours ago, Frezemis said:

We have other ways of enforcing properties especially those holding properties and not putting them to use.

The problem is, with the 6 months regulation it takes ages until such issues become visible- the recent shack being a prime example ,but there's others too (some people prefer not to list their properties as they know perfectly well it's absolute bs aka "ic speculation" what they do).

 

I can't just assume my neighbour doesn't use their property as I don't run into them daily, so reports typically will only happen when such stuff- after 6 months- ends up on the market and it suddenly turns out the system doesn't quite work as intended since, as mentioned, it encourages to hold onto properties one doesn't actually need ic as this is rewarded monetarily (unless again pm takes action, but even then- we don't know what happened to the million dollar shack).

Edited by knppel
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I just wanna drop my 2c as someone who isn't really involved in housing but frequently checks out properties in the sales forum.

 

I think it's absolutely ridiculous that most properties sell for 200,000 - 500,000 $ and then you have houses in Mirror ( which gets home invaded daily ) and Vespucci Canals ( areas with extremely high crime of late where even cops are told to armor up and have their rifle on hand ) selling for fucking 3 million dollars which as a legal character with a steady job is gonna take me 19 months to save up at 160,000 $ a month assuming I don't spend money on anything else.

 

Edited by pateuvasiliu
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10 hours ago, TheSenate said:

 

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.

So everyone that has been paying 5x MP recently for houses should just take a massive L? All this will do is make sure is even less houses are on the market. 

 

11 hours ago, Cocaine Capital said:

Not everyone keeps their houses because they can't break even.

Most of them do and most of the houses that have been coming on the market has been solely because of the property rule removing price caps after 6 months. If it weren't for that rule change we would be having the same problem like it use to be where houses almost never come on the market. 

 

  

9 hours ago, Frezemis said:

As mentioned above, we take the regulations off it'll become the same concept/economy a vast majority of us have experienced. The regulation originally was x3 of market price setting the limit, players weren't happy with not being able to sell for higher we've adjusted that to avoid the house flipping and those just hoarding properties. Honestly, there is no "perfect" way to ensure it being fair aside from regulations and making sure players are using the properties. We don't regulate it then it becomes free reign and you'll see Grove Street houses going for millions.

 

Houses are going to keep getting more expensive regardless. My issues is not regulating who can buy houses in certain areas but restricting the ability for people to sell houses for the prices they want. Again I've heard several people state this argument that without this regulations house prices would go parabolic. I think something as simply halfling the 6 months wait period to 3 months will benefit the server buy reducing the time the person has to wait before they can get the price they want. And what is the explanation for why the prices that have been selling after 6 months of ownerships why aren't people asking for.
 

This house is a perfect example. This guy sold it to me exactly on the 6 months mark. There was no way he was going to take a 1 million dollar loss to sell it 1 or two months earlier. If it was 3 months instead of 6 that house might of been on the market twice in that period instead of once. The rules as they are now are just making the supply issue worse in my opinion. 

Edited by Power
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25 minutes ago, Power said:

Most of them do and most of the houses that have been coming on the market has been solely because of the property rule removing price caps after 6 months. If it weren't for that rule change we would be having the same problem like it use to be where houses almost never come on the market. 

Do you not remember how ridiculous Sandy Shores trailer prices were going for before any of the price controls were in place? Talking late 2019 / early 2020. $80,000 trailers going for half a million easy and people were buying them up like 10 year olds on Halloween night grabbing for candy. Sure, we had more houses on the market but it was no better. People just bought them up knowing they'd be able to turn them around for profit not because they wanted to use them. You act like prices aren't going to skyrocket, as if people care what kind of money they spend. A majority of people do not buy houses to RP in. They buy houses knowing the demand is so high, they'll be able to get anything they want for it. The only reason the market hasn't gone up in smoke already is because not everyone wants to wait 6 months to sell it for that much.

 

Balancing an artificial housing market is tough. You have to de-incentivize people's willingness to spend their monopoly money. Right now, there's nothing on the other end discouraging people from bidding 5-10x market price or higher. Enact a purchase tax, a use tax, property taxes, etc. Something that will make people think more carefully about the money they spend. The catch with that is then people start to complain about "the grind" to own property, just like we are now. It's a double-edged sword. The housing market is nothing more than a commodity market. People buy and sell houses to make money in a majority of cases. The demand for houses isn't because people want to spend 8 hours a day inside their house, let's be real.

 

Multi-million dollar homes should not be a regular occurrence. It's highly discouraging to anyone starting out on the server and only serves to reward people who have spent hundreds of hours to accumulate that much money. In that case, we have PM applications for people who can be rewarded with a house all to themselves. Houses on the regular market should not be allowed to reach that high. Let's do the math on a 2 million dollar home.

 

You get $200,000 to start, assuming you spend none of it. You work at any average job on the server that pays $4,000 an hour. $2,000,000 minus $200,000 is 1.8 million. It would take you 450 hours assuming you spend NOTHING in order to afford that 2 million dollar home. Does that sound fun to you? Not everyone has that kind of time to play. This isn't supposed to be a career / life simulator where I come home from my real job and spend hours upon hours just trying to afford a house. Price controls exist for a reason and they should because this isn't supposed to be real life. Sure we're on a heavy role play server, but that doesn't mean it shouldn't be enjoyable for the average player.

Edited by Brofessor
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52 minutes ago, Brofessor said:

You get $200,000 to start, assuming you spend none of it. You work at any average job on the server that pays $4,000 an hour. $2,000,000 minus $200,000 is 1.8 million. It would take you 450 hours assuming you spend NOTHING in order to afford that 2 million dollar home. Does that sound fun to you? Not everyone has that kind of time to play. This isn't supposed to be a career / life simulator where I come home from my real job and spend hours upon hours just trying to afford a house. Price controls exist for a reason and they should because this isn't supposed to be real life. Sure we're on a heavy role play server, but that doesn't mean it shouldn't be enjoyable for the average player.

Again you've made this argument multiple times I just don't get it. Everyone on the server isn't going to get a Mirror Park or even a Davis house so the idea we should be catering the housing market so new players can afford really desirable houses make no sense. There aren't a shortage of nice apartments and flats to fill the gaps. For the player that can't afford the Mirror park house they can by the high rise apartment in Vinewood for 200k. A good way to get money out of the server is release more of these houses property management have locked behind application and give them really high market prices talking 750k, 1 million even more. And you do have a point the only thing worth buying on this server are houses and cars so that is where the money goes to. There unlimited supply of cars so those aren't really going to get parabolic. 

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15 minutes ago, Power said:

Again you've made this argument multiple times I just don't get it. Everyone on the server isn't going to get a Mirror Park or even a Davis house so the idea we should be catering the housing market so new players can afford really desirable houses make no sense. There aren't a shortage of nice apartments and flats to fill the gaps. For the player that can't afford the Mirror park house they can by the high rise apartment in Vinewood for 200k. A good way to get money out of the server is release more of these houses property management have locked behind application and give them really high market prices talking 750k, 1 million even more. And you do have a point the only thing worth buying on this server are houses and cars so that is where the money goes to. There unlimited supply of cars so those aren't really going to get parabolic. 

It's clear that you don't get it, otherwise we wouldn't be having this discussion nor would the thread have been created. Multiple people have explained the issue with the suggestion. Your suggestion to remove price controls entirely will decimate the server's economy as it has done in past servers more than once. You underestimate people's ability to be greedy and think the market will regulate itself, which it won't. It's been shown in the past on this server before price controls were ever put in. The server management enacted price controls because things were getting out of hand, so it's already been shown that it will get out of hand. Proof is in the pudding. It's already happened. It will happen again, especially if you remove any sort of control at all. The only reason it's happening slower now is precisely because we have that 6 month gap that not everyone is willing to wait to sell their house for a ridiculous price.

Edited by Brofessor
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