Do NOT Buy Houses!
Aries Prime
I've done some reading and I've done a few quick calculations and analysis to discover that this market will not be profitable. Here is my simple reasoning:
Currently Poland has Housing Raw Materials at .18 (Serbia .15). Let's use that as the price for all raws. Netherlands has 0% bonuses on housing raws. Because of this even at the largest company we can only produce 250 housing raws per worker. Also note that managers cannot work in housing companies. Already you are forced to hire workers. Now let's calculate the wage workers need to be at in Netherlands to break even.
.18*250=45
(35 gold investment for mine)
So after spending 35 gold to build one mine and hiring one worker, you will need to pay a wage less then 45cc per day to earn a profit. Sounds pretty good right? Wrong. Wages are skyrocketing because of the increased demand. They will equalize soon enough, but the huge influx of demand for housing will continue to push these wages up. Poland is at 83cc per worker, UK at 50, even NL has a contract for 56cc up.
I won't even get into the difficulty of keeping workers when wages will be increasing all the time.
What Does This Mean?
Simply put, do NOT buy houses if you are looking for a profit. Netherlands, with 0% bonuses, is a terrible place to invest in this market. Wages are unstable and the prices for housing raws are unstable and seem to be going down. Some good business players might be able to ride the market, but I strongly advise most of you to wait it out.
This is a great time to be a worker. Workers will be making tons of extra cc and should absolutely be picking up new jobs daily. This new housing market has created a huge surge in labor demand and we will see a permanent rise in wages. This is good for workers in the short run, and government permanently. Unfortunately, higher wages across the board will mean higher food and weapons prices, so you best be buying up huge stocks right now.
The only reason to get into this market is if you are a heavy tank with money to spare. The extra health and recovery can be a great thing for heavy hitters with money. That is your only reason to do it.
Feel free to check out this great analysis article for more info:http://www.erepublik.com/en/article/the-economist-updates-on-the-new-housing-module-2417877/1/20
Aries Prime
Comments
If only you publish this article earlier 🙁
VOTED
All is true, dont buy houses 😶
Thanks for the article
I wasn't going to buy any anyways but I voted since this can be very useful advice for others. o7
I probably speak for many others when I say the following: Thank you for doing the research, the calculating and the posting of this article so fast, this way many people who considered spending money into this new market now don't spill money at it straight away.
[removed]
That's also an option
It sounded too complicated, with too many variables to me, so I left it.
I invested 10k into Q7.
Cool so now we know who to ask if we need weapons
he will not hand anything out, he will just wait till prices go up and than sell the whole stock to make money (As I understood in the government IRC channel)
its expected that both food and q7 weapons will go up in prices, some markets will specialise in houses (the bigger ones or whit a lot off housing resources) for other nations like eNL in this case for exemple, the housing industry aint a good one.
eInternational that means that other markets will specialise in food and or weapons and thus resulting in eGlobal specialised markets whit higher wages and every market whit a certain good to be priced low.
So expect more licenses to be bought in small countries and expect all prices off goods to go up.
Investing in food/q7 is a smart deal atm.
So we must live on the streets hue
Better go homeless.
Just live in your little tank.
i still got an spare cardboard box if you want 🙂
vote
v
I agree on the Raw materials, but building the house itself is highly profitable, sold 1 yesterday with a net gain of 300 NLG...(investment of 50 Gold, if I sell a house every day, this investment should be returned in 5-6 weeks)
Don't expect that turnover to stick at that level. I guess only time will tell us what happens.
Yeah I didn't include actually building the house itself and selling it, but I doubt they will be profitable for long. I guess we will find out soon enough.
[removed]