The morning call., 1894-02-01
MAGEE'S VIEWS.
AS Expressed in His Real
Estate Circular.
Better Feeling in the Real Estate
Market-The Money Market.
Board of Equalization.

We quote the following from advance
proofs of the Real Estate Circular for the
month of February, edited by Thomas
Magee s. Sons:
There is a better feeling in the real estate
market, due largely to the resumption of loans
by the savings banks. Buyers, 100, are each
month having the tact more strongly forced
upon them that prices OF good inside pro0uc-
tive Income property are not likely 10 decline
more than they have already DONE They are
OF TWO or three years ago. Such property, on
its present asking prices pays 61a TO 61a net.
and In many cases is situated in growing dis
trlcts, too. Investments Of that kind are much
better. we thin than the best mortgages al.
though nearly every money owner has for sew
erai months been looking out for per cent
mortgages, rather than for purchases, mort
cages which even in the monetary famine of
few months ago they very seldom succeeded In
finding.
Now that the savings banks are occupving
their old field of endng money again. good
mortgages for private lenders will be more diff
cult 10 obtain, unless they lend at cheaper
rate than The savings banks G. per cent? which
is not at all likely. There is no demand for
speculative property anywhere. Only what
pays sells, but, even when such property is
offered them. buyers want everything-low
prices. to 61a per cent net, and also property
with good future. The difficulty is that
owners know there is nothing better TO be had
for money han property nlling the two latter
requirements, and there is therefore very little
of IL for sale; aud since the monetary pressure
has been on all sides relieved. there is apt TO be
less of IL for sale rather than more When
there is less there will be many more buyers.
The Fr nchman. In time OF panic, only
wanted his money II the bank could not give it
to him, and so buyers only want even the best
OF real estate when sellers DO not want to sell.
Small buyers have learned the lesson, which
they should in boom times have had off by
heart, to buy only what they can quickly and
cheapy reacn, and therefore live upon and use
The auction sale on the 30th ult. of the Halleck
estate property consisting Of the old Montgom-
ery-block lot and building and twelve vacant
water lots, each 457s x137:6, on the southeast
line OF Howard str OF, northeast line of Ere
mont street and southwest line OF Beae street.
showed Enthusiastically that no one now wants to
buy vacant land IN greatly depressed neigh
borhOod, or an ole building at the north end
the upper stories OF which rent very uncertainty
to poor tenants and at very low office rents.
We are GLAD to announce that the leading
saving banks have resumed loaning. The total
number of city real estate mortgages recorded
in January was 353 OF the value of 81 ,O57 ,13O.
Seven per cent Is the rate now charged by the
savings banks for money. That was the ia
last spring before the run occurred. The saw
ings banks, therefore, II they are not loanng al
The very lowest rate, are not initiating many
private LENDERS, In trying TO squeeze exec ssive
interest from borrowers. Out OF the per cent
too. the savings bonks have to pay about 1.6O
per abnum imposed as a mortgage tax.
We would ike TO ask the large number of
people whose money is locked up whether II is
best TO buy good business property in a city
like this when IL IS cheap or when it is dear?
OF course the answer Will be that they would
prefer to buy when 1t Is cheap. but that at
present, because times are hard, they do not
care TO invest at all. But, whether they now
think so or not, they will in the great majority
of cases buy later on, only because the crowd
will then again be buying.
The iub-for we fully believe that IL is a ioh-
of cutting down Market street has passed Ihe
preliminary stage IN the Board of Supervisors,
and we snppo-e, therefore, that it will go
through. We do not think IL will add any yalile
to Market street beyond Valencia, and owners
who think 1t will. VIII. we think, be dsap-
pointed In their calculations. The grades OF
cross streets will be altered and heavy cost
thereby incurred, without any corresponding
benefit Those who are pushing this work
through VIII run into snag just as soon as they
owns a large lot on Market aud Dolores will
Immediately legally enjoin them.
We have always asserted that, so long as the
State Board OF Equalization Insisted that IL was
its duty to assess ZEAL estate at full cash values
taking as measure OF those values for all the
real estate OF The city the few sales made on
each street from year 10 year, Sau francisco
had no defense against outrageous Increase of
State assessments Tie late sale OF the Mont
gomery block properly, and Of twelve water
lots on Howard. Fremont and Beale streets, is
proof of this. The ~ Montgomery block prop-
erty is assessed at S92, 300, while Il was
Knocked down b. fore large audience, and
appraised in the Probate Court at Sl75. 600
about two years ago.. The twelve water lots
were assessed al S1l94S0, aud were Knocked
down at total of S14o.450.
These prices are much less than both proper
ties have heretofore been valued at or tnan
they could have been sold for two or three
years ago. There is no doubt whatever but
that the prices lately paid are much nearer in
trinslc values than those which might have
been obtained during boom times, when money
was drug. Even II the bids are raised they
here will watch the proceedings of the Slate
Board of Equalization al the next annual meet
ing with great interest TO see whether Ii will
voluntarily step in between them and the Civ
Assessors excessive overvaluat1ons and re-
duce the assessments 20 TO 30 per cent for
State purposes.