Why do I get the message "You cannot create objects here".

This happens when the land you are on doesn't allow others to rez items. This means the following will not work:
You need to be on land that allows build.
      
Additionally, you can talk to the land owner. If they're afraid of griefers, they can do this:
    1. Set land to a group. e.g. "My group"
    2. Turn on auto-return - even 1 minute (the minimum timer, but recommended timer is 15 minutes) is sufficient for the LULU Signature Gag to work, and would be sufficient for griefer attacks.
    3. In (About Land) Options, set "Allow All Residents" to build.
    4. Now, all those objects on the land that is NOT set to "My group" will be returned within a minute.
    5. Meanwhile, any vendors or other third-party items (not owned by the land owner) have to be set to "My group" first, and they will remain on the land just fine.
    6. Any item owned by the land owner will never be returned regardless of auto-return setting. This however doesn't apply if the land owner is a Group. Then all items must be set to "My group".
   
    The more people who talk the land owners, the more likely they will respond. Otherwise people simply won't want to play in unfriendly sims/spots.