One of the most frequently asked questions that comes through the Property Sharemarket Economics (PSE) inbox is something like this.
“Is this a good time to buy with prices so high, I fear we are in a bubble right now.”
Our study of the cycle history suggests that yes, real estate prices right now are high, but they are going much higher!
And believe me, it won’t take much time to turn the fear of a bubble into a fear of missing out as greed takes over.
It is the same old story; ever rising prices require new and innovative ways to let people afford to buy them. Soon everyone in your neighbourhood takes advantage of the easy credit to become property investors.
However, don’t despair, as I’m about to show you how you can buy prime CBD land anywhere in the world for as little as $10 dollars down.
Earth 2
The best way to describe how this is even possible, it’s probably appropriate to let the developers describe what “Earth 2” is.
“Earth 2 is a futuristic concept for a second earth; a metaverse, between virtual and physical reality in which real-world geolocations on a sectioned map correspond to user generated digital virtual environments. These environments can be owned, bought, sold, and in the near future deeply customized.
A virtual 1:1 scale version of Earth is inevitable, and Earth 2 is the beginning of this exciting future. Phase 1 is now live and represents the central global body that aims to determine ownership of digital assets and property inside this futuristic virtual metaverse of Earth.
Built on top of Map Box technology, we have created a geographically linked digital grid layer that spans across the entire planet allowing people to claim ownership of Virtual Land in the form of tiles. It is our vision that Virtual Land will increase in value over time based on demand, location and earning potential, much the same way that physical land does, so be sure to claim your own land in key locations around the world early on!”
So, as you can tell, it is indeed possible to buy prime real estate across the “world” for a few cups of coffee.
And here is what this looks like within the game (because that’s what this is).
Source – Earth 2
Above is the famous Melbourne Cricket Ground (MCG) on Brunton avenue in Melbourne.
For those of a patriotic bent, you’ll notice that, in Earth 2, its totally Australian owned. Mind you, all the same buyer. Thus, the MCG is now very much privatized at least in this game.
As an added source of income, the game allows you to place paid advertisements that will play every time someone zooms close into your “property”.
Future releases or updates of this game will allow owners to rent their virtual land to others, as this will allow a level of gamification where the game will let you build your own additions on any vacant land you own.
Do you own a few acres of farmland and ever thought “what would a mini-Eiffel tower look like from the bedroom window”, well now you have a chance to buy or bid for your own virtual farmland and eventually do exactly that!
Follow the money.
Much to my surprise, these types of non-fungible token (NFT) based games and collectibles are becoming a theme for me to write to you about.
I first brought you the story of NBA’s Top Shot digital collectibles last month, never thinking there would be any need for me to revisit.
It seemed on the surface to be a crypto traders plaything, a way to spend their winnings trading in and out of tokens like Bitcoin.
Now however, it’s clear that this is precisely what isn’t going on here.
And Earth 2 can now be added to a growing trend which has a chance to really separate this current 18.6-year Real Estate Cycle as the first ever truly digital real estate cycle.
And thus, it is worth following the trend. And much like Top Shot, we aren’t talking chump change here.
Source – Earth 2
This the world leader board showing who owns the most virtual earth. This is expressed as E-credits. Basically, consider it on a 1 to 1 basis on whatever fiat currency you use.
These are your land barons in this game.
Its serious money isn’t it?
We are hardwired to do this.
After spending time researching these various NFT based businesses, I can clearly see how the behavior exhibited by participants is absolutely no different to the behavior demonstrated by those who trade on stock markets or flip property.
From the Earth 2 website.
“Go anywhere, do anything. Imagine a digital virtual world on a 1:1 scale with Earth where you could go anywhere and do anything!
This is your opportunity to become involved with the future, be part of the future and reap rewards for your early involvement.”
Buy and hold. Wait until the price is high enough and then drip feed your tiles onto the market.
Sound familiar?
Look, I’ve no idea whether this game last 10 weeks or 10 years. There are enormous opportunities here which means people might simply get bored with this and move onto the next new thing.
Or not. Maybe this really takes hold. Young people these days totally get how this works. Remember, they are a generation that do not need to physically hold what they own, be it crypto tokens, Top Shot moments or indeed these tiles in Earth 2.
Perhaps it’s because they see the opportunities their parents had to build massive Super balances or multiple property portfolios are simply beyond them, but they can make their own mark in markets that are beyond the comprehension of their older parents?
Regardless, it proves that the desire to get something for truly little with the expectation of massive windfalls to them for no effort shows how hardwired we all are regardless of generation.
We all want something for nothing.
Take our speculation into VR.
This is a great demonstration of how we take our speculative nature into virtual reality.
The rules are the same here as in real life, with the same results. Boom to bust.
So that means that there probably is money to be made in this venture, at least during this part of the (real-life) real estate cycle.
And it’s simple to do. Just sign up to the website, use your preferred method of payment like a credit card or crypto tokens, and find a virtual plot of land to call your own.
Or bid with other potential buyers and see if you can tempt vendors to sell you a virtual piece of the MCG? Or the White House?
You are limited only by your imagination here.
But if you do decide to take the plunge, remember that what you learn in real-life property and land speculation will serve you equally as well in its virtual cousin.
So, I can recommend a helping hand to get you started.
It’s called the Boom Bust Bulletin.
Inside you will learn the history of the 18.6-year Real Estate Cycle, why it repeats and how to take full advantage of the opportunities it presents.
You will find this knowledge presented in a simple easy to follow guide nowhere else.
And it will serve you very well should you decide to build your own virtual real estate portfolio.
And all for less than a weeks’ worth of takeaway coffees.
Best wishes
Darren J Wilson
and your Property Sharemarket Economics Team
P.S – Go to our Facebook Page and follow us for right up to date information on the 18.6-year Real Estate Cycle.