[arin-ppml] On the topic of longer prefixes...

William Herrin bill at herrin.us
Wed Jul 29 21:01:45 EDT 2009

On Wed, Jul 29, 2009 at 7:51 PM, Ted Mittelstaedt<tedm at ipinc.net> wrote:
> I can tell you that in the area I live in, price for a standard
> residential city lot of 100x50 feet is something around $100K
> right now.  20 years ago it was around $35K   Property taxes
> are 1.5% (as a result of a ballot measure years ago) so over
> that 20 years the owners of that undeveloped lot would have
> paid $20,240 in property taxes - and thus would have still
> realized a profit on the sale of the lot today of $44,760
> even though they never developed it, allowing for those taxes.


Factor in inflation and $35k 20 years ago is around $65k today.
Likewise, you adjust the $20k taxes for inflation and you've paid
closer to $30k in today's dollars. Of course when you sell it, you'll
pay around 10% capital gains on the paper increase of $65k, or $6.5k.
So, $65k + $30k + $6.5k = $101.5k. In "constant dollars" you're
actually in the hole for $1500.

> I know I'm not that
> good in math but I didn't think I was that bad!!!


Sorry man, you walked right in to that one.

One of my favorite strategies for recovering underutilized addresses
is the lottery-like system. Every payment period ARIN sends out bills
for $X per IPv4 address. Flat rate, $X times the number of addresses
you have. For each block you hold, you can pay or return the
addresses. After all the payments are received, they're divvied up
among the folks who returned addresses based on the number of
addresses returned.

Meanwhile, ARIN hires an Vegas oddsmaker to figure out what to set the
payment at to shake loose the number of addresses needed to meet the
demand. And there's no financial mess at ARIN because dollars out is
exactly equal to dollars in.


William D. Herrin ................ herrin at dirtside.com  bill at herrin.us
3005 Crane Dr. ...................... Web: <http://bill.herrin.us/>
Falls Church, VA 22042-3004

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