The sun., 1900-09-16
REAL ESTATE NEWS.

A private house renting for less than $500
a year Ia a rare exception in Manhattan. Some
miniature dwellings erected on lots twelve and
a half feet wide and some others located In tho
midst OF stables command less. Even at $500
there are few houses to be had OF normal size,
except in badly deterorated localities. A
three-story ten-room house sixteen feet eight
inches wide containing modern plumbing and
In good repair Is bargain at $500 In the average
mixed fat and dwelling house nelghborbood.
The rents most frequently quoted by agents
In Manhattan when the question is as 10 insr-
penslve houses are s9OO 81. 900 and 81 400. 40
cording to size. condition and location.
Men Of family In the middle class Of society
normally spend from one-ffth 10 one-fourth
OF their income in rent for living quarters,
the smaller proportion usually obtaining In the
case Of dwellings and the larger in the case
OF fats which provide heat and hot water
Generally speaking. therefore, a man must re-
ceive an income Of 81. 800 or. say, IS 900 a year
in order to be able 70 live In q private houss
in Manhattan, a circumstance which explains
why 80 per cent. Of the population Of the borough
live in tenements and fats
As regards the majority OF people Of assured
peouniary position-professional men. trades
people. and salaried employees-incomes
range from, say. 81. 200 TO 5000 year. People
OF this class are for the most part financially
unable to live in private houses In Manhattan.
and. until recently. particularly the last two
years. the supply Of available private houses
elsewhere was limited. except as incomes ap-
preached the 5000 mark The extension Of
trolley transportation and betterments In ferry
and suburban steam railway service. however.
have brought vast tracts OF hitherto insoces-
aihla nd ~ T.
reach OF the metropolitan business centre at
low fare. until now a private house 10 within
the economic capacity of larger part Of tho
population than since New York ceased to be
a provincial town. 1t is not surprising, there
fore. that though the real estate mark Is other
wise quiet there IL a marked investment move
ment In progress in suburban realty, PARTON
larly In the more favored parts Of the city's
frontier.
The popular interest In the subject OF insr-
pensive private houses which this movem ent
indicates will justify calling attention to certain
elementary considerations by which an In
vestor should allow himself 10 be guided In tbe
purchase Of a home. The selling value OF real
property, Of course. Is determined by the In
come 1t will yield It's a rule generally accept
ed by professional operators In the New York
market that the selling price is equal 10 ten
years gross rent. Thus. ifa house rents at $500
n year its selling value will be 5000 One-ffth
Of ones income i a normal expenditure for the
hire Of a private house A person with an in
come of 81 200 a year. therefore. will act In
accordance with conservative and approved
principles of investment In buying a home at
?.4OO. while n person with an income Of IS 600
may make a purchase Of $1,000 The applica-
ton Of this principle. while simple enough
where the purchase Is made in cash. requires
some modification n il ia 10 be strictly carried
out In cases where only part Of the purchase
price Is paid However. a buyer with an in
come of 81 200, for example. Is reasonably sure
Of being able 10 cope successfully with any
question that may arise in connection with the
average purchase money mortgage on a home
worth s2.ioO
In selecting a home. apart from consider
nions relating 10 transportation. It should
be remembered that property IN an eStab-
ished and developed community has the great
advantage OF not being subject 20 special assess
ments for public improvements. other things
being equal land values are also less likely 20
he inflated IN a community where there has
been little or no recent speculative building