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06-30-2019, 03:20 PM | #1 |
Join Date: Nov 2017
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Buying a House?
So my players want to rent/buy a house in a large walled city.
How much would you charge? I said they could rent one for maybe $50-$100 a week, so for now they are paying $320 a month (which also takes into account, I suppose, their living expenses from their jobs). But what if they want to buy it flat out? |
06-30-2019, 04:42 PM | #2 |
Join Date: May 2015
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Re: Buying a House?
Then you need to decide what housing costs are like in that part of your campaign world. There are no fixed rules for that, and as you can see from the real-world housing market, even in modern times, real estate can vary crazily from place to place and time to time.
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06-30-2019, 05:09 PM | #3 |
Join Date: Sep 2007
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Re: Buying a House?
Adventurers. In our town. I think we all know what this means.
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07-01-2019, 01:27 AM | #4 |
Join Date: Nov 2017
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Re: Buying a House?
Sooo….nobody has had to deal with this an has any reasonable ideas?
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07-01-2019, 04:38 AM | #5 |
Join Date: Dec 2017
Location: London Uk, but originally from Scotland
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Re: Buying a House?
For simplicity's sake I just convert £sterling to Silver so I don't need separate price lists, I can just work from real world prices instead. So a monthly rental of basic accommodation is about £400-500. Buying a house will vary a lot with size and location but will probably be around £100-150k for something at the lower end (not a slum, but nothing fancy).
If they're buying in the capital city or in the rich quarter that could easily scale up by several magnitudes. |
07-01-2019, 04:50 AM | #6 |
Join Date: Dec 2017
Location: London Uk, but originally from Scotland
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Re: Buying a House?
Looking into it a bit more, if we assume that purchase price should have some relationship to rental value then we can use tools like price to rent ratio to help.
Price to Rent ratio is calculated by Purchase Price divided by Annual Rental cost. A price-to-rent ratio of 1 to 15 indicates it is much better to buy than rent; a price-to-rent ratio of 16 to 20 indicates it is typically better to rent than buy, and a price-to-rent ratio of 21 or more indicates it is much better to rent than buy. If your guys are renting at £320 per month, you could set the ratio at 15 (the top end of the "better to buy" scale). That's £3,840 annual rental cost. Multiplied by 15 gives you a purchase price of £57,600. It's a starting point anyway. |
07-01-2019, 05:50 AM | #7 | ||
Join Date: May 2019
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Re: Buying a House?
Quote:
Lets say a small house in the UK (where I live) is anywhere from (modern day) £20,000 to £400,000 depending on:- geographical location, weather, proximity to ports and main trade routes, the perceived value of the quarter (inside or outside the city walls, surrounded by orc beggars or royal scions) its construction of mud, wattle and daub or stone, any special features or history - gardens, cellars, stables etc. And lets say the wages of people in the UK vary from something like £15,000 to £80,000 commonly. So a house might cost you anything from a quarter of a years wages, to 20ish years of earnings, depending. Or, assuming poorer people live in the poorer houses, you would need to spend a year of wages if poor, or 4-5 years of wages if rich, to get a house that 'suits you'. Jobs. Low paid workers in Cidri seem to earn about $30 a week after expenses. So that would make the cheapest houses something like $1500. Top earners like healers and sages are around $100 a week, so that would make a nice place somewhere around $20,000. OR Another way to look at it is rents. Subsistence costs are $20 a week, $50 if you have 'pretension to social standing' which arguably half goes on rent - lets assume so. Lets also assume that a landowner who decides to buy a house and then rent it out would like to break even after, say, 10 years, and then be into profit. That would give us a property rental income (and house purchase value) of $5,000 over ten years at the low end and a higher end around $12,500. OR You could consider how much it would cost to build a house. A builder will cost you $70 a week, maybe with 4 labourers for $25 each a week. If a mid-range wood/wattle+daub house takes 12 weeks to build, and half the cost is labour, the house will cost you $4,000 and I guess you could sell it for at least $8,000, but then I haven't included the land cost, or probably the fittings like windows and ironwork. OR We could look up the cost of Medieval houses and convert to Cidri currency: http://web.archive.org/web/201106282...html#BUILDINGS Quote:
That puts a cottage at $960; a craftsmans house at $4,800-7,200 and a merchants house at $16,000 to $32,000 Double checking this, we can see that this information puts the rent of a cottage at 1/8 of its cost, rent for a craftsmans house at 1/10 to 1/15 of its value and rent of a merchants house at 1/16 to 1/20th its value. That would be $10 a month for a cottage, $40 a month for a craftsmans house, and about $80 a month for a merchants house. Not too far off but maybe a little low. --------------- Given all that, you need to take into account Location, Location, Location, but it looks like a good sized house suitable for around 4 adventurers, in a quiet part of a major city, might cost $6,000 to $10,000? Last edited by MikMod; 07-01-2019 at 06:04 AM. |
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07-01-2019, 07:58 AM | #8 |
Join Date: Jan 2018
Location: Cidri (exact location withheld)
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Re: Buying a House?
The prices of today's housing is massively propped up by the normalisation of usury. When banking cartels have less power, cash prices are lower. So take ratios like 15-20 years rent being the asking price with a grain of salt.
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07-01-2019, 09:20 AM | #9 | |
Join Date: Nov 2017
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Re: Buying a House?
Quote:
One question I am left with though is what are someone's cost of living at different salary levels? The rules say that subsistence is $20 and it included in those that live at subsistence level. I doubt that is supposed to mean that a Healer lives at subsistence levels. So some of their money is going to 'rent' or whatever, that just leaves them with their play money at the end. Which on the one hand makes it easy...you guys all have jobs so you don't need to worry about rent. But on the other hand, clearly someone who makes $30 a week and someone who makes $150 can't reasonably be living in the same house (their cost of living must be different). Ugh...I like the job system, I just wish it didn't hand wave this stuff or took more details (like purchasing property) into account! |
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