New-York tribune., 1912-02-04
TALK ON INVESTMENTS
FIathouse Properties Best for
Small Buyers, Says Expert.

The best real estate investments for men
of moderate means are New York fat
houses according to Joseph l.. Butten-
wieser, who owns many such properties.
These views were expressed by him at a
recent session Of the real estate class Of
the West Side Young Mems Christian AS
socation. He was the principal speaker on
that occasion.
"The man with many millions OF dollars
to invest" said Mr. Buttenwieser. would
not put all his money into nathouses be-
cause he would have to own several hun
dred. and that would require too much at
tention from the investor. But for the man
of moderate means there is nothing better
than a few we'll selected fathouses."
AS regards the advantages in favor OF
the fathouse as a form OF investment he
said: First. It is Ientablo at all seasons Of
the year. Every month you have a renting
market In business property II man
owns I'm a section where leases run out on
the first Of February and he hasn't man
aged 10 find a tenant by that date, the
chances are ninety out OF hundred ne
will carry the vacancy for the entire year
This is equally true OF dwelling houses ana
high grade apartment houses where the
first OF October has grown 10 he the end OF
the renting season.
"In the second place, the loss due TO each
vacancy in a hathouse is very small in re-
lation TO the total rental Of the house, so
that not only is the period of vacancy likely
TO be short, but the amount Of loss Is likely
to be trivial, both absolutely and In com
parison with the loss suffered In business
properties or high grade apartments.
Third, the renting is less dependent on
fashion or on shifting centres OF activity.
For example, when the silk trade moves
from Grand street up to Fourth avenue
there is a wholesale migration, and they
empty out the older section completely. IL
may be some time before some other trade
comes to fill the gap.
"One could hardly conceive OF an oc-
casion that would require a wholesale ri-
grafton of fathouse dwellers from one Sec
ton to another In the case Of higher
grade apartments the consideration OF a
more fashionable neghborhood or some
newer Improvement, or some new fad or
fancy that will make the tenant or rather
the tenants wife or daughters, feel that
they must make a change and be UP 10
date plays a most important part, and. 10
and behold! a well rented apartment mouse
Will become half vacant through some such
unexpected cause.
"A nathouse is never subject to such
sudden squalls.
Fourth. II reductions must be made 10
keen a tenant, the reduction In the nat
house is small but no slight reduction VIII
tempt the merchant to remain when the
ma iority in his own line will have migrated
70 some other section of the city.
"EYfth. comparing the fiathouse with high
grade apartments and with business build
ines or Office buildings that are not leaseI
10 one tenant. the percentage OF hxeu
charges is smaller by far. This increases
the net return, which. In any case, Is
larger in this class of property.
"There is still one more advantage In
favor of the fiathouse which ] might call
10 your attention. II purchaser has been
careful TO select the fiathouse in the CEN
trally located part of Manhattan there Is
a possibility, not always remote. that the
land value may overtake the total value
Of the ground and of the building. This is
especialIy true of fathouses and private
houses. while 1t is seldom true of loft
buildings and apartment houses. | have
seen an endless number Of private houses
and fathouses purchased merely for theli
land value, while II is a rare occurrence to
see apartment houses. lofttor office build
ings taken down TO make room for new
building.
"Numberless instances OF private dwell
ings and hathouses being demolished ruth
lessly TO make way for business structures,
apartment houses, hotels and Office build
ings are to be found in every part of Man
haitian Island south of seth street and be-
tween Third and Eighth avenues
After all. / think 1t will be safely con-
ceded that the tenement house, carefully
handled and purchased with proper eau
ton, is not a bad form of investment. and
often combines the features OF a good in
vestment' and OF a profitable association"
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