The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-07
NEW YORK REAL ESTATE NOW AT LOWEST PRICES
OFFERS UNUSUAL OPPORTUNITIES FOR SAFE IN
Six to Ten Per
Cent. Is to Be
Had From High
Class Modern
Property Prices
as Low as They
Are Likely to Be
ny JOHN L. PARISH.

For some four years past there
has been no appreciable investment
movement in real property in New
York city. Many salee In that time
have been reported as Investments
by the purchasers. but in only few
Instances have the purchases been
Of truly investment character.
The proper distinction between In
vc5tment and speculation IN ofuen ig-
norcd or Overlooked by tho people
who report tho sales. An Investment
purchase In one made for cash, or
partly in cash, the purpose being 90
hold the property purchased and OPP
crate II for the income from rsnt
Where the purchase IL paid for with
other property entirely there may zoe
an element of investment also; al
though the exchange Is made mainly
to Improve one panty's financial posi-
ton and To obtain raw materials for
further building operations by tho
other party.
The investment feature IN such
case Is not altogether voluntary. The
trade is generally made because II Is
the only or best way out Of an I'M
profitable holding. Sometimes the
trader Is so well content with his new
holding that he withdraws II from the
market or ceases at least TO be eager
TO dispose of It. In such cases the
new holding may properly be termed
an investment.
But generally in the exchanges that
have been the main feature OF the
market for four or five years the main
intention is 10 hold and operate the
property only until such time as an
opportunity to turn II into cash
arises In which case an actual invest
ment in real property takes place
Almost all other purchases have been
speculative in their nature.
When a man buys vacant plot
or assemblies two or more old prop
critics to make plottage, with the in
tention OF reselling TO a builder for
Improvement, either himself lending
the builder the money with which to
build, or procuring II from another.
he makes speculative purchase
rather than an investment. And the
builders purchase Is also speculative
rather than investment.
So that while there has been a
goodly volume Of speculative buying,
and some for use and occupancy, dur
ing the last four or Ave years, there
has been almost no real investment
buying And for this there have been
several good and sufficient reasons.
The sum Of them all is that prices
were too high. Two or three booms
had come and gone and left their
trails OF disappointment behind them.
SO that after the booms there were
periods Of reaction and decline and
many an III advised investor learned
that a little expert advice that he
might have had for a song might
have saved him lost fortune.
But during all these boom times,
as during all the times OF reaction and
decline, there has been no time when
safe and profitable investments could
not have been made in New York city
real property. People hear very little
OF the successful operations in real
property. There are no features IN
such operations to come into the lime
light OF newspaper publicity. II Is
only the failures or disasters that get
into the courts and are made matter
OF public record And a little consid-
Grafton of the facts shows that these
failures and disasters constitute less