The Washington times., 1910-05-21
REALTY INVESTORS
SHOW CONF IDENCE
Constant Growth Shown in
Demand for Investment
Properties.
By JOHN MARTIN.

Experienced real estate investors. not
only of Washington, but throughout the
country, whose operations, not infrc-
quently, are followed as a criterion re-
garding the development possibilities OF
the sections wherein they are made, are
manuesung their confidence Ia the fu-
ture Of The Capitals market in an IN
r. precedented manner.
During the past few months there has
been constant growth in the demand
for big investment properties from local
and outside buyers. Records in the var
tous real estate Offices show that this
demand is heavier at present than fl
has been in years.
Indicating the response of the market
TO this demand there are now more
apartment houses in course Of construc-
ton than probably has ever been the
case.
In short, the market, say dealers. has
not witnessed such a return Of conf
dence since the panic of 1907.
Investors Inspire Confidence.
With investors Of reputation for abil-
ity to judge acquiring property on a
large scale, business is not only made
active, but the confidence thus manifest
ed in the future OF the market undOuDI-
cdly will make for the development OF
the Capital on a constantly expanding
scale a long as II continues
While the demand Tor big investments
has increased, that for mOderate-prlceu
residences for investments has shown
recent tendency TO decrease
This however, mas not given rise 10
alarm. Ii is attributed TO the fact that
the ratio between supply ana demand
has slightly shifted toward supply. as
= result Of the effort OF builders TO
meet the unusual demand which has
existed for residences both as homes
and investments.
That this ratio viii rapidly be brought
10 the point where il Will result in the
trading in residences being as active
ion.
Country's Condition Reflected.
Various reasons are advanced for the
demand which exists for investment
properties of higher value In the final
analysis. however, they are based upon
the single theory that the Washington
market reflects conditions prevailing
throughout the country, and that when
the country prospers the Capitals real
estate fourishes.
The average apartment house In
" ashington yields gross income OF
10 per cent. with not more than per
cent required 10 be deducted for main
. tenance expenses.
II is not difficult TO understand why
outside investors are attracted 70
Washington when they are assured Of
at least a 6 per cent net income on
apartment house purchases.
But apartment houses do not caneti-
Tute all the big investment opportuni-
ties Local buyers have Deen quick 20
grasp the effect Of the Governments oD-
creations along Pennsylvania avenue, and
are anticipating the nOrthward growth
of the business section
Residences RemodeIed.
In one block on New York avenue
that between Ninth and Tenth streets
half a dozen residences have been
bought for the purpose Of being remod-
eled into investment properties.
- As an example Of this. the former resi-
Uence at 916 New York avenue has been
Z remOdeled into a store with five fats
The store space has been leased and
practically all OF the fats at $50 a
month each, which is an unusual pr.cS
for suites Of their size.
Undoubtedly one Of the principal rea-
sons for the increase in the construc-
ton Of apartment houses is the fact
that loans may be more easily secured
on this type Of building than was the
case year ago. There is not the fear
that once existed Of experiencing Diff
Gculty in securing a renewal of loans.
f Real estate dealers are enthusiastic
over the tendency Of buyers TO acquire
the most valuable pieces OF property
the market has 70 offer. IL iustiieS the
contention they have consistently put
forth, they assert, that no appreciate
nuctuating tendencies are TO be encoun-
tered in the growth Of the market but
barring panics, which would affect lhe
country at large.
Taken all in all, indications are that
the year will be the most wonderful
from a building standpoint Washington
has ever known.