I played Rune of Magic for a bit and the houses were actually practical. It had extra storage, a mannequin to store extra armor sets so you could quick change, and you could have stations where you could work on your skills. In the game you had to be within a certain radius of say, an anvil to blacksmith. You could purchase an anvil for your house so you wouldn't be bugged by the unwashed masses. Other than the storage, I'm just not certain what practical uses a house could bring. Maybe they're just cosmetic.
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