The herald., 1894-03-25
ABOUT REAL ESTATE AND MONEY
Good Figures Prevail in ALI
Cases for the Former.
The Interest on the Latter is Grad
ually Lessening.
Never Has the Real Estate Market Since
the Bank Crisis offered q More
Hopeful Aspeot-MOney is
Easy, and offered.

and it may safely be asserted that the
outlook for the near future is brillia Mt
one. Money is very much easier than
it has been since the bank crisis, in fact
there Is much more money offered now
than there is demand for, and the in
terest ia lowering 90 more 10 placed
in the banks here by visitors for
the purpose OF investment.
While there is considerable real estate
on the market, none of It, except that
OF the lower grades, in undesirable
localities. uneasy of access. is offered at
low figure, but on the contrary, in no
instance are lots offered for less than the
actual value, and when feasible more
than that rate is asked. Small holders
of property are now in such position,
membranes and liens having been sat
isfied, that they need not sell when an
offer is made them, and as aconHequence
they are sure to hold out for an advance
on ruling rates when the opportunity
offera.
Withal the prices on Los Angeles
property. although considered high, are
by no means to be compared with those
OF cities of equal size anywhere else in
the union. The highest price for choice
residence property in the city per front
foot is only quoted at 800 per front foot,
which is acknowledged to be easily 90
per cent less than the rates in other To-
calitiee eQualing us. The same proper
tion obtains IL choicest business realty
on sbch streets ae Spring, Main and
Broadway, in the center OF the COM
msroial part of the city, which COM
mands an average OF $500 per front
foot. Yet, both residence and business
property of good grade remains aH high
as il was during the boom.
One thing is certainly very significant
in the history of this section. 1t is that
never has there been 30 much wealth
represented here by tourists from the
east. According to a prominent real
estate man, during the last month at
least 20 men, each OF whom represents
millions OF dollars, travelling in their
private cars, have visited Los Angeles
and have stayed here from one to ten
days. These gentlemen were here for
the purpose of seeking Investments, and
If the proper or desirable class OF prop
erty was shown .hem it is more than
likely that they may take hold Of it.
Many other eastern people are here
now, and the majority are here TO seek
homes. They have money, and, in fact,
some OF them have such amounts Of 1t
that they are willing to place it out at
interest. Where q few months ago in
the windows of realty dealers an offer to
loan sums of money on good security was
an absolute rarity, today these en-
nouncements stare one in the face every
where, but very few applications for it
are reported. Money loaned on good
property will not at present earn more
than per cent net, and on good resi-
dence property not more than 8 per cent
net. When it gets down to say per
cent gross, then it may be expected that
it will materially help transactions in
real estate.
There are now in the east many peo-
pie who are anxious to remove to this
section OF California, but whose prop
erty, by reason OF hard times prevailing
there, cannot be readily disposed of.
Real estate dealers in this city are
daily in receipt Of hundreds OF communi-
cations offering to trade property back
east for realty in Southern California.
When the hard times in the east shall
have ceased, and all reports are to the
effect that business and trade in the
states are resuming healthier state of
affairs, these people will find an op-
portunity to dispose of their holdings
and will come here. and then rush is
likely to occur. sE ~
No such rash buying on speculation,
often ending in disaster, as occurred
during the boom, will again present it.
self. The people who intend to visit the
coast will come for the purpose OF seek
ing homes only, and they will be able to
find just what they want. Those who
shall want acreage for distinct purposes
will be able to acquire exactly the class
of land that they are in esarch of. Ex-.
perimentB have demonstrated beyond
cavil which are the aections particularly
suited to the culture of citrus, walnut,
peach and other varieties of fruit trees,
ae we'll ae all other classes of profitable
cultivation, and there will be no trouble
whatever for any intending investor to
buy blindly in an unfavorsble seotion.
AS interest comes down, and as has
been said before, it ia decreasing, sensi-
BILE people who wish to invest in a home
but have not quite enough money to do
30 out and out, will be enabled to do 40,
because they will have no hesitation to
cucumber their property to some ex.
tent, the rate aHked on loans not being
of crushing character.
For the past 80 days money is reported
e5 Deln4 plentlIul Tor loans, not only In
the hands of residents but also
in those OF visitors; small loans of from
$500 to $4,000 are freely offered with very
few takers. Money to loan at per cent
net is not unusual. One loan of several
thousand dollara at per cent not
q couple of days ago is on record.
Real estate men ought to make q
united effort to have people transferring
property to insert in their deeds the
full purchase price, instead OF nominal
consideration. If the total OF the daily
transactions were given accurately, it
would be between five and six times
larger than what appears now of record,
and it would be an advertisement to the
city and county, which could only re-
dound to the credit OF Los Angeles.
Probably more solid business is being
done now than in boom days, but 1t does
not 80 chow in the real estate transfers
on account of these nominal considera.
tions.
Something which is very much needed
here in order to attract the element
which 10 likely TO purchase property in
This section is frst-class tourist hotel,
and 1t seems strange that no one takes
hold practically of the idea. The tourist
travel is immense, aH the great number
OF strangers shows, and the commercial
hotels are entirely inadequate TO give
IL