, 1872-11-08

Louis. cities with equally boundleag
ar a5ea A. tor M expansion, it is evident that,
influence in forcing up values in New York and
Boston,, these are not the only Influences, This
| other controlling cause has been explained that
within the city limits the whole tendency OF bus
mess, which alone can warrant large income
irom feai estate, has been for expansion and
olstflbut1on over large number Of avenues and
that there has not been as much concentration
as IN any other city. Hence the effect of close
concentration Of business has not been felt in
lts influence on values in choice locations to the
e1tent tnat might be expected in city 30 large
as Phlladelphia; and, IN respect to dwelling
house property, building is done SO rapidly, and
there are 80 many capitalists always ready and
willing to make adyance-loans to builders, that
the J.. buildings are erected, in most cases,
little in advance Of the demand for
from making "a corner" in them. This some-
times results in some loss to builder when
his profit in each house is small and the cost OF
carrying is larger than his estimate. Yet, as
dwelling houses are nearly as much q necessary
it is better condition for the people who are
the consumers, and must be the sufferers in any
extraordinary rise in prices, that the usual con-
dition Of the house market does not favor "a
corner"
"GRouND-RENT'' SYSTEM
The mode II which extensive house building is
managed here may be new to many of your
readers as it differs from most other cities,
William Penn introduced into this city what is
known as the Ground-Rent system from Eng
land, which is simply the granting of land
BY deed, in fee simple. reseryfne to tho
grantor @ certain rent to be paid in annual or
Hemi-annual sums. Thus, if A owns q lot OF
ground 20 feet front by 100 feet in depth, which
agreement ia made that the price at which it is
to be conYeyed to B ia aS per font fs9 nar
foot means per foot fro1lt5, the ground ia
conveyed in fee simple to B, with Q covenant
assigns viii pay to A the s,1m of se0in aan3i.sn-
nuaf payments of $50, at days liked in tie deed ed
clear n a1l radnction for tsvaa and ott,ay
charges. B. or his assigns, can discharge this
the rent is the interest ct her % cant IN h tha
case illustrated being SEQ, the princpal will. of
course. be 81 900. The adyantages Of the intro
duction Of this system OF grou1d-rsnts in the
past has been, that many people OF limited
means. with q laudable ambition IN own
their own houses. have been stimulated
to save enough money to partial
" build a house. or hnv a.
house already built II they built upon lot
taken up on ground-rent, they had certainty
trouble could arise from the ground purchase.
and, unlike q mortgage, the principal did not
fau due always st the wrong time WITH such peo-
pie, and there was not the danger Of losing the
money invested in improvements bv foreclosure
md sale for want OF ability to psy The nrincinal
sum or to borrow the money from other persoRs'
and all increase in the value Of nronertv 1oaa ~
the purchaser on erouud-rant From t{1is ava.
tenn OF eround-rents comea the noeasnra nf vafna
of nronertv m recn1ar tn tb;a ~ - -s; 49,
price as go much per front foot meaning - ANN
Der foot equal to The interest At tba n1inc;n.1
snm for which the lot ia sn1d Th;s ,noda ~
calculation ie common for MI rronnd worth ias.
than al 900 nrincinal ner foot From tbst a-r. ,nr
used to designate Ysues a. }nr nstanes ~ i" ~
on Chestnut street. as fact front hv oY5 faet r.
depth. If sold Tor 80 O00 mar INT fba nnrch,aa
money would amount to $50 o00 f'AN ~1-'@''
7 BUILDING AssocIAT1oSs.
Another OF the facilities for neon1a of ANAL
means becoming real estate owners is fonnd in
the organization Of building and loan associa-
tions, Of which there are not less than 400 in |
active operation in this city, These co-opera-
tive associations. lending to their own share |
holders sums of money secured on real estate, |
and repaid principal and interest in monthly in
assist laboring men and MECHANICS
in the means to purchase homestead. and This |
is iquidated by the monthly payment OF . pum !
often not larger than the rent which they wonld |
pay to landlords as tenants. This e1nlaina a |
tle suburbs, where NAV be seen neat two and |
three-storY brick houses erected bv the thor-
sand each year. Who buys them !? The num.
Ser of shareholders Of these associa-
end to their shareholders each yesr for The
purchase money OF improved property sums
usually Of 81, 900 to 81, 510) which. in the ag-
3regate, amounts to sc, 060, 600 or $1,000, 600.
With this explanation, it is not hard to under
tand how it is that the builder is able to find
purchasers, or that the purchasers are many OF
hem poor men. The ground-rent system and
ui1ding and loan associations have been the
Hicient means Of encouraging and facilitating
eople OF small incomes to put their savings in
homestead. It is said mora people proper
onately in Philadelphia own the houses in /,
Fhich they live than any other large city in
be United States, and if this be true OF the
Tnited States, it may be taken as true OF Europe,
or real estate is more subdiyided In American
IAN in European cities.
THE 11osus" nu1nr,a svs7rx
Another method Of buildinr hnnses in 1,rca
1ocka in ph;iedelnhia ia N 9bat ;s hara - oa1is5
adrsncamants ,vh;cb - s;,anI 10 n1e sA4Ia ~
,Tner of lot or nieca of land r;s}'so ~ hsva IT,
nnrovad 1tf, hu5Id;noa hn+ anae ',,t ~ 9a;.
"a ~ ~ +.Io ~ xsi1a - h;,i; ~ osene
1Teee Win a hui1der Vic i, a1oh onoorat;a~, - |
,1rmad sahonus hn;'dar y to sdzs!oa 49,