The times., 1899-07-10
DISTRICT REAL ESTATE.
Bright Prospects for Activity in IN,
Coming Autumn.


Coming Autumn.
The statements OF the banks and trust
companies Of the District and the show
ing that they make. as whole may be
considered carefully with profit by owners
Of idle funds seeking investment. y
Washington capitalist OF much shrewdRe5s,
IN conversation a few days ago regarding
this showing. made the assertion that 1t
is the most convincing argument for care
ful investment in real estate that has yet
been given.
The abundance Of idle money and the
difficulty OF obtaining adequate interest
or dividend returns for capital have heen
realized for several months by business
men. but the actual definite facts of The
situation are presented in most con-
vincing and unanswerable way by these
pank statements. showing immense in
creases In deposits in the past six months.
deposits that draw no interest. for their
owners. and to them represent exactly
so much idle capital
The Increase in deposits is In round
numbers s5.0oo,000, the total sum now held
being something like SIS. 900. This
totai would II invested at per cent. bring
IN return of a million dollars a year
The new funds deposited recently, which
presumably were prohtably engaged before,
represent an earning power at per cent
of s200.0O0 a year.
1t is probable that 4 large part OF this
idle money will be invested in real estate
in time. Every month 1t is becoming
more certain that the era of cheap money
has come to stay. and that most modest
return only can be expected on loans
The advertising columns of the newspapers
contain offers OF an abundance OF funds
to loan at from 3 3-4 to l-2 per cent
And the rate is lowering constantly in
stead of getting better. The same condi-
tion exists to a more limited extent with
regard to the stocks and bonds of local
corporations. Prices have been advancing
steadily during the past year from 10 to
loo per cent. until now securities which
net only per cent and less are numerous
while gilt edged stocks and bonds net
ting as much as 8 per cent are almost TN
known. Real estate investments. are
always the next to be taken up after
street railway and like securities The
time is undoubtedly very near when a
strong and healthy real estate market Will
develop. At present such investments
are larger than in any recent sum
mer and careful capitalists and brokers
express the confident opinion that the COM
ing of early autumn will witness marked
revival of the interest.
1t is to exactly this condition that the
remark of the capitalist quoted above ap-
plies. When real estate booms prices will
advance quickly. At present this advances
has only begun in a small way. and the
chances for buying property at near the
low valuation Of the past several dull
years are many.
An illustration OF this, not startling in
any way, but most suggestive, may be
given. A seIni-suburban residence was
purchased less than three months ago for
$4,000. Small repairs were made at cost
OF less than $500. Two weeks ago, before
the repairs were completed s., ,e00 rece. vel
from the sale of a local stock was paid to
the new owner for his house. The profit
in about two months was more than
thousand dollars, or % per cent. Instances
of this kind will be numerous later in the
year II the indications OF present condi-
tions may be believed.
The plethora of money is, OF course, only
one argument why investments in real
estate should be profitable. Money might
be much cheaper than it is even now. ami
real estate would be duh if there were lot
the best OF intrinsic reasons for increases
in value OF good real property.
The increasing prosperity on every side.
among employers and employees alike. Is
one of the striking developments OF the
year 1893. Washington has besn somewhat
of a laggard in this respect, and the tide
Of returning good times has not reached so
hlgn mere as IN the distinctiYeiy manu-
featuring and business centres, hut b1si-
ness men unanimously report that never
theless the improvement has been marked,
and not to be mistaken. The amount of
business done IS larger this year than last.
and tine profits greater in proportion. The
labor unions. on the other hand. report
that more men are employed, and that en-
ployment is more steady.
The development of rapid transit in all
directions in the city and suburbs is one
OF the most certain forerunners OF adyanc-
ing prices for real property. The present
year as whole will witness greater exten-
sions of rapid transportation facilities in
the District than any before. Suburban
and semi-suburban sections that were
wholly out OF the question a few months
ago to the ordinary business man. Govern
ment clerk, or mechanic. are now within
half an hour or less OF the business por-
tion of the city. New suburbs are coming
into the desirable radius every month
The increase in the population OF the
District is steady, and it viii be even
more rapid as prosperity encourages the
wealthy classes 10 spend money for Wash
ington residences on the one hand, and
rapid transit makes cheap residences po--
sible on the ether.
Stocks and bonds have advanced in value
on an average 80 per cent in the past
twelve months. II is not too much to e.
pect that real estate will follow this leat
in the coming year.