St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-03-17
Buyers Of Real Estate Are
Almost All Buying to
Build.
Prices Are Very Firm. But as
Yet No Advance Is
Shown.
Opposition Among Farmers
and Dealers to the Sevat-
son Usury Bill.
Should 1t Pass, the Flow Of
Eastern Money Will
Cease.

The past week has justified the pre-
dictions made last Sunday of an in
creased activity in real estate circles.
All agents report very lively inquiry
for all sorts of property. This inquiry
has come to large extent from the
East. but local capitalists are appar-
emily doing their share of the buying.
One very encouraging feature of the
situation is the number of laborerS and
comparatively poor men who are buy
ing. This indicates that money Is
not scarce, as this class buys to
build as a rule and not for spec
ulative purposes. Property in the
suburbs meets with ready sale at
good figures. and lots anywhere within
a few blocks of railway stations, cable
cars or motor line, are selling freely at
from $500 TO $1,000, according to loca-
ton. The proposed new cable line
from Seventh and WabaSha streets to
Lake Phalen has already affected the
price of property in that direction,
though the rise in price has only been
slight. Still this is the time to buy. as
before man gets his house built the
cars will be running. A few more such
extensions in different directions would
do much to build up substantial resi-
dence quarters in the suburbs where now
there are few ii any houses. Many men
live in rooms in the business part of the
city simply because transportation to
many parts of the suburban districts is
so difficult. Property on st. Anthony
hill is in extensive demand, and is
very difficult thing to get. Any we'll
located lots on any of the streets and
avenues up there meet with a ready
sale if not held too high, and it is diff
cult TO say whether or no it is too high
at present. The value of anything is
what it will fetch, and while prices ap-
pear to many to be high, there are peo-
pie who must have property there, no
matter what it costs. The owners can
not therefore be blamed for holding out
for what may seem to some high fig
ures. They
CAN AFFORD TO WAIT,
and the ultimate sale at present prices
is certain sooner or later. Those who
now buy on the hill rarely, if ever, buy
for speculation. and fine residences
speedily adorn every lot sold. The in
Quiry for the finer grades of residence
lots is very brisk, and several good sales
have been made during the week. The
buyers were all local men, who intend
to build at once. Business property is
i'll great demand, and anything at
fraction less than top figures is snapped
up instantly. One of the largest building
and loan societies in the East brought
a site during the week for huge
block, which will be commenced at
once. and will be as fine as anything yet
built. Prices of downtown property
keep very firm, and offers of 10 per cent
off of the established price have been
refused in all directions. People are
evidently beginning to realize That st.
Paul property is very cheap. AS indi-
Gated last week, comparing it with
similar property III other cities of the
same size it is from % to so per cent
lower all around. Eastern capitalists
looking for safe investments have ap-
parently discovered this fact, and this
accounts for the number of Inquiries
for quotations received by all the
larger real estate brokers by
every mail. 1t also accounts for the
great firmneSS with which the owners
hold to their prices, and the distinctly
bullish feeling apparent in the market.
While this firm tendency has not vet
developed into any marked rise in
prices, such a rise is imminent and will
be surprise to nobody. There will
not be any boom. st. Paul has become
too metropolitan for anything of that
.'OIO W oSCt.I DuU al Sltuj dcllNtty
III inquiries is certain TO cause an adj
vance i'll prices. and none need he sur
prised to see decided jump inside of
the next few months. Then there
will be a rush to buy at
the advance, as is ALWAYS
the case, by those who will
be kicking themselves because they did
not buy before. 1t is quite remarkable
that at the present time of the year.
when everything in real estate circles is
usually dead, there should be such a
lively interest maintained. The earli-
ness of the spring has had good deal
to do with it. and as soon as the weather
gets really settled the transfers will be
many and large. Should there be a
good crop this year very lively time
may be expected III the fall. Business
of every kind will improve, and this
cannot fail TO affect the price of real es-
tate. more especially as it will come on
an already rising market. The summer
and fall of 1889 will be long re-
membered if the present indica-
tons are not delusive. Every
thing points to strong, healthy mar
ket, with advancing prices, easy and
numerous sales, and large totality of
business. There is any amount of
money to be had on good security, and
loans of any size, small or great, can be
obtained with the greatest ease, at low
rates of interest There is more money
to be made in making small loans than
large ones, as man who wants small
amount frequently wants it very badly,
and is willing to pay a high rate of
interest, while the man who wants
$4,000 or S30,0G0 loan has got so
spoiler that he will not pay any more
than 6 per cent, and some has been
loaned at so and 5. A man can get all
the money he wants at 6 per cent if his
security is fairly good. The petitions
presented daily to the senate against
the Sevatson usury bill show the feel
ing on the subject among the intelli-
gent farmers. They realize that in the
event of the passage of the bill they
will find it very difficult to get small
loans, as the capitalists of the East will
not, consider such prices as they
could get after deducting ex-
penses. There is another pernicious
feature abont the bill which
is agitating all those who have money
to loan. If it should be discovered
that the mortgagor has paid more than
8 per cent the mortgage not only loses
his principal, but is liable to be sent to
state prison. AS mortgage loans are
almost always negotiated through an
agent, and frequently through two, an
error or an intentional evasion OF the
law by the acceptance of bonus in
lieu of commission, Oh the part of any
of any of the brokers through whose
hands the loan is made, would entirely
INVALIDATE THE MORTGAGE.
The immediate effect the passage of
such bill would have would be the
withdrawal of all the capital now in
Minnesota banks for investment for
Eastern men, from whom comes a great
majority of such money. This would