The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-10-21
THE SUCCESS OF HOME BUILDING
ON THE MONTHLY PAY
MENT PLAN.
EXAMPLES FOR ILLUSTRATION
APPROACHING FALL AUCTION SALES.
TRANSFERS AND LOANS.
GENERAL NOTES.

10 home-buving there have been many
kindly references and several communlca-
tons.
MANY reasons were at that time given
why a man on fair salary income should
be each month applying few dollars
toward the owning of home. He may be
encouraged by the fact that many men
with an excellent income from invested
capital prefer to acquire home by paying
monthly a sum of money equal to the rent
of suitable home. This not only allows
one his entire capital to use in his business
but affords an opportunity to reap the
benefit of rise in real estate values. The
latter is an item which may well be con-
sidered now that we are upon the eve OF
an era of prosperity. 1t is doubtless fact
that to MANY the statement seems pIaus
ibe but untrue, that one can buy lot ana
house on the installment plan and pay
principal and interest gradually every
month as easily as ordinary rent-paylng.
.sHow can do this?' is asked. How
much each month must L pay, and how
long must these payments be continued
before the indebtedn ess Is entirely wiped
OFF," The best answer is the concrete eX-
amples furnished by the following COM
munications received during the past
week.
Baldwin & Hammond write as follows:
In all the larpe cities OF our country many
of the more ambitious have been purchasing
homes the instalment plan, and by taking
the money they would have paid for rent and in
creasing il slightly, have finally freed them
selves from all question OF rent and have &C
quired property representing more money than
il would have been possible TO DO IN any other
way.
Just at this time there is further advantage
IN being able 10 obtain building materials at
remarkably low prices. To illustrate what is
being done i'll some sections of the City, lots
can be obtained for $500 that are quite desira
bic, neat cottage can be erected al present
for about 5000, making a total of $500. Ar
engagements can be made 10 pay $500 down
and the balance in monthly inStallments OF
$40 each for ninety six months, at which time
the purchaser receives clear title.
The following figures may be used as an IL
luStration. They furnished for the Castro
street Addition, one of the largest subdivisions
made recently. a purchases house and lot,
payable as follows:
Cash payment on purchase $780,
InStallment each month, $l6.
Total amount of inStallments, 1886.
Total cost, including interest, 1886.
With the enhancement OF the value of the
land during the period covered by the INSTALL
ments he has not paid too much for his prop
eTty. during this period has been paying
rent for similar cottage at $l5 month, and
finds al the end OF eight years that he is out
just the value OF AS home. In other words,
4 by advancing $500 has made his rent pay
for piece OF property valued at 1885, and,
upon paying the last installment, RECEIVERS the
$500 advanced in the value OF his home.
Jacob Heyman reviews the matter as fol-
lows:
While commencing your article suggesting
the paying OF rent 10 ones self by buying
home on the installment plan take the lib
erty to give you briefly what am prepared TO
offer. have averaged building from three to
five cottages a week during the last twelve
months. The initial payments on the homes
which I have built vary from 800 to $500.
while the monthly inStallmentS are either $40
or $40. Herewith give you my figures on a
Cost of cottage and lot, $3.50.
Cash down upon purchase $500.
Installment each month $50.
This installment OF $50 Includes both inter-
est and payment on principal The interest,
OF course, decreases with every payment mad9
until the final inStallment, on which the in
terest IS about 10 cents. So, averaging the III
terest from the commencement ii amounts to
about - 20 per month"; which may be rightly
looked upon as rent Now, q neat tive-room
cottage in the same locality will rent for $25
month This shows Il saving of nearly 800
month to the purchaser OF home, besides the
usual advance in real estate values which
takes place in all growing cities OF new
country.
McAfee Bros letter contains the follow
ing propositions:
We are prepared to build q handsome resi-
dence with all modern convenience. according
10 the designs of the purchaser on property on
Webster street, near suffer, on the following
terms:
Cost of lot, 25x112 IS, $4,000.
Cost OF residence, $4,000.
Cash down on purchase, $4,000.
Installments each month, S75.
Number OF years to pay out, twelve.
Rent OF such house, $40.
1t must be borne in mind that this property
is in the heart OF the City and of the best resi-
Dental quarter from which cable and electric
cars on adj dining streets connect with all parts
OF the City
There is no surer way to grow rich than to
use real estate in a thriving city as a savings
bank and 10 put into it the savings which re-
suit from life of industry and frugality.
Some of our richest citizens trace their wealth
10 the Investments which they began with
their earliest savings and kept up through life.
1t was an easy way TO fortune. 1t did not re-
quire activity genius; all that was re-
quired was judgment TO buy in the right place
, and prudence to keep out of debt. II pur-
chased in the right place, not only will he
enjoy all the advantages of ownership, but he
will participate in the enhancement of value
which results from the development of city.
Bovee. Toy & Co. offer the following ex-
ample in home-buying on monthly pay
ments.
The purchase of home is always perplex-
ing question. There is positive demand for
good homes within easy distance of the bust
ness center OF the City, although of course the
values OF such property are much higher than
those OF outside lots, Men OF good incomes
and considerable invested capital often prefer
70 buy home with a monthly expenditure
about equaling rent. There are presidents OF
insurance companies, managers OF large con-
Germs, and well-known professional and Judi
cial gentlemen in this City buying homes on
the lnstaument plan. New houses such
terms are demand of the time. AS a matter
OF illustration we are offering new houses
having splendid marine view on Webster
street near Vallejo, on these terms:
Cost OF house and lot, $4,000.
Cash payment on purchase, $4,000
lnstallments per month, $40.
Number of installments paid 100.
Any man who afford to rent one of these
houses can afford to buy it and pay the rent 10
himself instead of TO landlord. At the end
of the time he can sell it and get the money all
back if he wishes to do so. During the time he
will have had the consciousness OF owning his
own home. After man has paid in certain
amount should some unforeseen occurrence in
tervene TO render him unable to meet his
monthly installments, he may secure a fiat
loan at the bank and pay only interest for :
while until he can resume his payments.
]. J. O'Farrell & Co. submit the follow
% ing statement:
We have noted THE CALLS advocacy through
the real estate columns of the application o.
rent money 10 the purchase of home with q
good deal of interest Nothing in re-
cent years has done for the de
velopment OF our country or accomplished
{ more for the advancement of the workingman
. than this one idea. II is one OF the pertinent
causes for the superior condition of our me
chanics over those of other countries Muci
L. 80 l,,;l -