The sun., 1912-07-07
FOREIGN REALTY INVESTORS
Prefer Land Invcstmcnts md no,..
Care for Buildings.

nv ioreign investor. as far as relates
10 investment in real estate in tho
nited States, Is in peculiar positi,n
says Thomas T.. Graham in the Bu,lctir
of the Real Estate Board OF Brokers
Primarily the foreigner is an investor
ana as such his first thought il for
security Of principal. and after thar tho
returns he Is To receive from such In
vestment.
IL mas been well stated that Europe.
more particularly the United Kingdom
lives on Its foreign Investments. but
when money can be safely loaned a,
home nothing will induce a foreigner to
Invest abroad. A striking ease is tho
recent French loan subscribed over
e'shty times although put out at very
low rate of interest. The French have
absolute faith in the stability Of their
own Government, and tn" French peas
ant feels safe when his savings are so
invested.
Hermany has been going through
serious financial period the people hav-
ing invested largely In street RAILWAYS
and industrials, and while there has
pe"h som" Investment in enterprises
IN this country. the German capital has
been principally invested in manufac.
turing propositions. The German inn
vests through his bankers His foreign
real estate investment is In land and
leaning shares in the Argentine. which
Is practically considered a German col.
"ny. and where as in new concerns can
ital Is reeded pays a large rate OF In
terest
In our own case. II Is TO the English
ana lputch individuals. who have large
capital, that We must look as prob
able investors in real estate in New York
city
peculiar condition exists in Eng.
land caused Icy the taxes. or what Is gen
orally known as death duties" Very
nigh taxes on inh.ritances induce tn.
fhgllShinan ~ transfer AT least n por-
tion OF his fortune to countries that do
not exact similar penalties. The English
men have had. up To- the present tim.
unbounded faith in the propcrtv rights
granted by our Constitution and laws,
but recent political Developments seem
to have somewhat shaken their conf
dehce' conditions here seem chaotic to
thein ana they ar" lOath to do anything
in an Investment way until matters be-
come more settled.
In "a NADIA u competition has arisen
not only in the invest ment Of large sums
OF money in farming lands in the North
west. but also IN the cities more par
ticularly Toronto where land in the
principal business streets has sold from
%.VD TO $lO,H~ front foot in the biisi-
ness centres but Toronto is a compara
tively small city, and while it may con
tln'le 10 grow II has its limits and can
not absorb large amount Of capital
The form of investment that appeals
TO the foreigner unfort unately is one
that - not prevalent in New York city.
They prefer their invest ment principally
IN land. ana do moi care for top heavy
Investments where the cost of tho i'm
provemeht II greater than the value of
the land. as il usual with us Az nm IN
stance OF what In" foreigner finds attrac-
tive. two pieces Of property were bought
by one individual AT an aggregate cost
of over S2.OUOW0. where all Of the yalI.
was III the land, and the sellers g,Iaran
ieod net percentage return on the sell
ing price for twenty-one years This
invest fn"nt would have been followed
by others on similar lines except for the
political condit ions referred to- in addi-
ton to which would be the present business
administration of city affairs A large
amount OF foreign capital will be in-
vested h"r" inquest stionably in the near
iht,H" II an opportunity is offered i'm
IN" form of investment considered do
sirnbl" 10y them.
DO not think our large buildings will
ever he attractive To the foreigner no
matt how "" see the necessity for them
"i now ns"iul they are, they will ALWAYS
seem mnnstrosilies to them. They pin
th"ir iaith alway 10 the land