Player Housing: Instanced vs Open World?

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I'm curious about the 'Avatar' home base. Is it an instanced zone like in many MMOs, or is it a physical place in the Orbis world that other players can stumble upon? I'd prefer a mix of both.
In singleplayer, it's obviously open world. But for servers, I bet it's instanced to prevent griefing and to allow for more complex designs without lag.
If it's instanced, I hope we can invite friends easily. A home base that nobody can see is just a lonely box.

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