The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-07-02
NO DANGER YET
Of OVERbU|LO|NG
FLAT" HOUSES
Constitute Profitable In
veslment in Nearly
All Cases.
BANK BUILDING PLANNED
Skyscrapers May Yield in
i Time to Lower
Structures.
BANK BUILDING PLANNED

The purchase, concluded during tho
last week, of three apartment houses by
a West Virginian gives point to the
much disputed assertion that this kind
of real estate constitutes a most profta-
bic investment. Those who take the con-
trary view hold that in proportion al
the number of apartment houses in
creases, the older ones lose their invest
sment value; in fact, some OF the ex-
treuists have been known to declare
that in the majority of cases an apart
meth house becomes almost a losing
venture after the lapse of ten or fifteen
years. In view of this difference Of
opinion the question involved was sub
mitted to an investor who has had an
extended experience with apartment
houses, both as a builder of them and as
a purchaser.
Source of Good Revenue.
So far as my personal experience in
the matter entities me to pass judg-
ment'' said he, 1.-THE apartment house
which is favorabIy located and fairly
well built will always yield its owner
a satisfactory revenue, provided, of
course, it is kept in proper repair and
the owner is always mindful of the COM
fort of his tenants. This is no less true
of the two-story fat now SO greatly in
vogue than of the more pretentious
structures containing twenty and more
apartments. On an average a new part
ment house ought to pay its owner not
less than 10 per cent on his investment
for number of years. say ten. After 1T
is reasonable TO expect that the profit
will diminish, but if, as | have already
indicated, proper management prevails,
the net profit need never fall below
percent
You are. perhaps aware here in
terposed the questioner, that some of
our leading real estate men contend
that the building of apartment houses
in Washington is largely overdone, and
that sooner or later the market will be
overstocked What do you think about
it?'
Not AppIehensive.
Il must confess was the reply,
THAT l am not apprehensive on this
point. In the first place, the law of
supply and demand governs in this
case as it does in most others No man
ais going to- invest his money in apart
sment- houses. or in. any other kind of
property for that matter, when he
zion. is not going to make fair
profit. Just as soon as apartment
houses become a glut in the market
and 1t will not be difficult TO note that
; moment--no investor or speculative
builder will GO to the trouble or ex-
pense of putting them up. As far as
this phase of the situation is concerned
! 1t will regulate itself.
1.-The experience of other large cities,
both in Europe and in this country.
salso disproves the apprehensions OF our
fsiends who look askance upon the
erection of apartment houses. Economic
de well as social conditions make for
the apartment house.
Greater Convenience.
.s.There is the greater convenience for
The housewife with the least possible
amount of labor. and the relative cheap
mess of this kind of domiciliation appeals
10 the provider Take for instance
family that is paying $40 month rent
for a house. Servants hire. fuel, and
other indispensables will easily bring the
amount UP to between $55 and $50 For
so that family can get fat of suff1-
GENT size for its needs; less help will
be required. the expense for fuel falls
away. and there is a saving of proba bIv
$40 month. with the added convent
enoes
-'It Is not at all improbable that in the
course of time our people may not take
as kindly to the skyscraping apartment
houses. and when that times arrives we
shall have more of the three and four
story structures the kind you see In
Paris. London. Berlin, and other Eu-
rorcstn cities. ! am firmly of the opin-
ion that the apartment house not only
has come to. stay. but that ii Will in
crease. because of the many convent
ences and comforts 1t offers. WI hat is
irore. am constantly proving my faith
by my works. for l have built apart
snent houses to sell them as well as to
mold them as investments"