The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-18
BROKER ADVISES
A FESTIVE CLIENT
Urges Him to Keep on Paying
for House
BUYER rs DISCOURAGED
Argue Question of Rent VS.. Interest
and Real Estate War seems to
Advance the Stronger Rea-
sOns-Means Sacrifice
From the Washington Herald.

1
during the week in a real estate office.
A young man was talking with the
broker about selling his equity of $1,000
or SO he had paid into property valued
in the trusts at $500.
| 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 his wife had
become tired of the struggle to pay for
the property and that If they could they
would sell and go back to the rented
house.
The broker explained that it might be
difficult to find buyer who would want
to take the property at its original valua-
ton and pay for 1t $1,000 cash down and
the balance in the trust. But the broker
signifed his willingness to try to find
such 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 to quit the deal when he
had the back of 1t 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 500
in cash, agreeing to 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 $3.50 year and that he had
been obliged to spay about $500 a year
beside that He said this took the great
est part of his income, and that he and
his family had been forced to the most
rigid economy to meet the requirements
| Theoretically he supposed it was all
| right, and that IL they could hang on
| six or seven years more they would
have a comfortable home free of debt,
but the young man said the thing had
gotten on to his nerves and he had come
to the point where he thought it best to
back out with what he could get and
henceforth enjoy life little better in
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 and
| keep on paying on the property.
| Il sold you that house and made the
terms as easy for you as 1 could under
| the circumstances" said the broker.
'ahd I was sure when you signed the
papers you were doing a good thing for
yourself, and I think so STILL"
But, see what l am paying In the way
| of interest. taxes and fixed charges"
| answered the young man. ut amounts
to as much as rent, and for that l got
nothing. 40 {
| Lets see," said the broker. you have
| out there nice six-room house, in a
| fine neighborhood. You are surrounded
by families which like yours are buying
their houses. Where could you get so
| good a house in so good a neighborhood
for $3.50 a year? Not in Washington
assure you On the contrary, you would
pay from $40 to $500 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 get
| ting nothing from the interest and fixed
charges on you home. You live in 1t
and you get that privilege for just about
| 500 less a year than If you were not
gradually paying for a good piece of
property"
Tired of the Bargain
"well, I am tired of the struggle of
| paying all I can rake and scrape into
this house debt, and l want to get rid
of it for good and ALL"
"Well," said the broker, 'all can
say is that you cannot have much in
this world without paying the price for
1t. have not the least doubt that 1t
is a struggle. and that you see many
things you would like to do and like to
have elude 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 property worth $500,
which when paid for will be an asset
worth having. You would not save the
| difference between the rental and what
you are now paying on your house. I
| know your savings would be very small
and that at the end of six or seven years
you would not have anything like $4,000
| in the bank"
Eyes, but I would have a good time,
| and my wife would not have to do her
| own Homework as she now has to do.
Is it 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,
I"I think you have gotten your ideas
| twisted on this proposition to some de-
gree and that you are looking at 1t from
the wrong angle. If you say sell I will
try and sell, but at the same>time feel
| that 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
when you should try to accumulate
little property and you are already far
| on the way to secure a good home for
| yourself in your old age.
Ibid 1t 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 fair
margin of investment besides II 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
wthng a period of less than 10 years
| Go home and figure 1t out yourself and
you'll see 1t as I do"
The conversation ended at this point
| the subject from a new view point.
Thinks He VIII Not Sell
After his departure the broker said:
'TIe will not sell out. In the first place
he cannot withort sacrifice, Just at
| this point in the deal, and in the next
place as soon as that thrifty wife of his
| learns what have told him she will
| not let him think of selling. She will
see quick enough that 1t will pay them
best to hold on and pay for the house.
There Is no sacrifice American women OF
the better sort will not make to have a
shelter over their heads they can call
| theh own, and there are thousands of
| them in Washington who are going with
| out fine dresses, doing their own house.
work and sometimes the washing to get
| their houses paid for, and can't help
! thinking that this one fact means more
! to the future well-being of this city
than all the fine talk we hear about the
ot< ooH he O1n IL