The Washington herald., 1910-07-03
BROKER ADVISES
| A FESTIVE CLIENT
Urges Him to Keep ON Pay.
ing for House.
BUYER BECOMES DISCOURAGED
They Argue Question of Rent VS..
Interest and Real Estate Man
Reasons-Home Buying Means a
Sacrifice on Part OF Purchaser.

Rent versus interest was the subject
discussed in a conversation overheard
during the week in a real estate Office.
A young man was talking with the
broker about selling his equity of sl.ooo
or so he had paid into a property valued
in the trusts at S3.5oo.
The young man said he had purchased
the property two and a half years back,
that he had reduced the debt by about
$1,000. but that both he and mis- wife had
become tired of the struggle to pay for
the property and that if they could they
would sell out and 30 back TO the rented
house.
The broker explained that It might be
difficult to find a buyer who would want
TO take the property at its original valua-
ton and pay for it $1,000 cash down and
the balance IN the trust But the broker
signifed his willingness TO try TO find
such a purchaser.
HIS Reasons Expressed.
The conversation then turned upon the
reasons for the young man desiring to
sell out. He was asked by the broker
why he wished 10, quit the deal when he
had the back of it broken in the way
of the largest interest payments and
when the rest of the way it would be
easier shedding.
The young man explained that he had
purchased the property by paying SEQ
in cash, agreeing 70 keep up the inter
est and pay so much monthly on the
principal OF the debt He said the in
terest, taxes. and other charges had
amounted to $50 year and that be had
been obliged 20 pay about 5000 a year
beside that He said this took the great
or part of his income. and that he and
his family had been forced 10 the most
rigid economy to meet the requirements.
Theoretically he supposed Il was all right.
and that IL they could hang on six or
seven years more they would have
comfortable home free Of debt, but the
young man said the thing had gotten on
to his nerves and he had come 10 the
point where ne thought It best 10 back
out with what he could get and hence
forth enjoy life a little better in q
rented house.
Advises His Client.
The broker said the case was not I'M
common. but he hoped the young man
would reconsider his determination ard
keep on paying for the property.
i sold you that house and made the
terms as easy for you as / could under
the circumstances. said the broker.
and I was sure when you signed the
papers you were doing a good thing for
yourself. aud I think so still"
But. see what I am paying in the
way Of interest. taxes and fixed charges"
answered the young man. 1T amounts
10 as much as rent. and for that I got
nothing"
Let's see" said the broker. you have
out there a nice siX-TOOm house in
fine neighboThood You are surrounded
by families which Ike yours are buying
their houses. Where could you get so
good a house in so good neighbor-
hood for $50 a year2 Not in Washing
ton, I assure you On the contrary, you
would pay from $3.50 10 800 year for
the house YOU are living in. And pray
tell me what do you get for the rent
you would pay other than the privilege
of living IN somebody's house not your
own? You are mistaken when YOU say
you are getting nothing from the inter
est and fixed charges on your home.
You live in it and you get that privilege
for just about 500 less a year than If
you were not gradually. paying for 2
good piece Of property"
Tired of the Bargain.
We'll, I am tired of the struggle OF
paying all can rake and scrape int
this house debt, and I want to get rid
Of il for good and all"
Well" says the broker. "an I can
say is that YOU cannot have much in
this world without paying the price for
it. I have not the least doubt that It
is a struggle. and that you see many
things you would like to do and like TO
have eiude you because you have not
the cash to buy them But don't you
see that as the price OF sacrifice along
these lines you are gradually acquiring
the fee simple TO a property worth S. 500,
worth having You would not save the
difference between the rental and what
you are now paying Oh your house. ]
know your savings would be very small
and that at the end OF six or seven years
you would not have anything like $1,000
in the bank"
''Yes. but 1 would have a good time,
and my wife would not have TO do her
own homework as she now has 10 do
Is ii not better to live while YOU have
the chance, and not wait for all the good
things of life until you are too old to
want them?"
Says Ideas Are Twisted.
my good friend" said the broker,
Il think you have gotten your ideas
twisted on this proposition TO some de-
gree and that you are looking at ii from
the wrong angle. If you say sell will
try and sell. but at the same time feel
that I must urge you TO keep at the
task you have set until 1t is finished
You are now in the prime of life and at
your best earning capacity It Is the
time when you should try 20 accumulate
a little property and you are already far
on the way TO secure a good home for
yourself in old age
Did IL ever occur to you that when
YOU are paying rent you are buying the
other mans house for him. paying its
fixed charges and leaving him a fair
margin of investment besides. If you
had that house paid for I could sell
you another In such a way that the
rental would keep up all the payments
and leave you pOssessor of the house
within period of less than ten years
Go home and figure it out yourself and
you will see it as do"
The conversation ended at this point
and the young man went out to ponder
the subject from q new view point
Thinks He VIII Not Sell.
After his departure the broker sid
He will not sell out. In the first place
ne cannot without a sacrifice lust aft