SL International Business

PRICE! It’s ALL ABOUT PRICE!
And especially lots about “land tax” AKA Tier fees.

I’m going to be using Mainland only, as for Island land you generally have lesser costs and that’s why it might be better in some cases than mainland.

Also, if you have the money, you definately should own, especially if you run on higher tiers, but now i’m thinking more about the price conservative newcomer guy or someone with not much money to put into Second Life.

Think about this, to own you need:

• Be premium
• Pay tier to LL

For rental, what do you need? A few L$ only!

Premium costs at minimum 6USD a month, making 6*266*1.035(Lindex Fee) = 1651.86L$ a month
You get back from that as stipend, on average 4.33 weeks a month: 4.33*300=1299L$ a month.
Leaving premium to cost: 352.86L$ a month.
This gets you “free” 512sqm tier.
512sqm parcel costs currently, for mediocre quality land about 5600L$.
4096sqm parcel cost: 44,800L$
First month costs to get your first 512sqm parcel: 72USD - 4.88USD(Stipends) + 21.05USD(Land Cost) = 88.17USD First month costs to get your first 4096sqm parcel: 72USD - 4.88USD(Stipdends) + 168.42USD(Land) + 25USD(Additional Tier) = 260.54USD

Quite a lot right?

Rental costs are somewhere on this vicinity:
275L$ for 512sqm
1600L$ for 4096sqm
WEEKLY
Makes: 1190.75L$ for 512sqm and 6928L$ for 4096sqm a month.

512sqm rental for a year: 14289L$ or 53.72USD
4096sqm rental for a year: 83136L$ or 312.54USD

Costs of ownership:
512sqm, 5600L$ purchase, 4234.32L$ for premium :: 9834.32L$
So for 512sqm, for a year, it might be actually better to own it!

4096sqm: 44,800L$ purchase, 4234.32L$ for premium and 79800L$ for tiers :: 128834.32L$ for the first year
This difference is ** HUGE **
128834.32L$ - 83136L$ = 45698.32L$ or 171.80USD LESS COSTS. That’s more than the land PURCHASE price, and more than you are going to LIKELY GET from the land when sold!

Would 171.80USD make a difference to your business in SL? Probably. But more importantly: That’s 171.80USD IN YOUR pocket.

And the trend continues year after year, 2 year total costs:
OWN: 44,800L$ purchase +  8468.64L$ premium, 159600L$ tiers, TOTAL: 212868.64L$
RENT: 166272L$
DIFFERENCE: 46596.64L$ or 175.18USD

3 years total costs:
OWN: 44,800L$ purchase + 12702.96L$ premium + 239400L$ tiers, TOTAL:  296902.96L$
RENT: 249408L$
DIFFERENCE:  47494.96L$ or  178.55USD

So you are saving money!

If you are going for 512sqm parcel, rental might not be a good option for you, unless you want several of them in different places. Where i am heading with this?
YES, you could have with rental a lot more stores / locations of business than outright buying them out. You could get the benefit of growing your business way faster.

This same goes for mortgages too, except mortgage is slightly more expensive by basic costs, but if you slowly pay on the principal, you will end up owning the land.

Also, rental and mortgage is a PERFECT choice for you if you want so much land you simply cannot pay for it yourself outright, say half a sim or full sim. Full sim goes for 2,200-2,600USD today, that’s a huge lump of money!
For most of us, that might  even  mean TWO months salary in FULL.  and after that, there’s the continuous tier fees also!

So contact Tyrian Camilo inworld to get your rental!