The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-14

tNN'U wa 4 t'@H'
York Would 4. AFFECT small house own
crs In Manhattan like those In Brooklyn"
-. What ercc, would the untaxing of
buildings have upon house owners where
tho value OF the real estate Ia from
10000 20 $4,000? Would the effect
be the same in Manhattan a. In the
other b~oroug.ls?
%. What effect would the un;axlng Of
, buildings have upon the relatively small
and moro modest Owners N each class OF
owners % buildings. as compared with
| tho relative weal,h.c- members IN each
class?
20. To wha, extent can the effect OF
| the ~un,Rxing % buildings upon Ian
, values bc predicted with accuracy N the
: different parts ~ the city
To these questions the ADVISOR 'oun-
Gil o. l,ea, Estate Interests mas az
tempted to reply FOR tho real esta'"
world o: New York. These are th'
Z
:. Tho development 81 land values IN
! different parts OF the city has been 'ei%
/ irregular. depending on tho development
OF transit facilities, causing Appreciation
In one section and sometimes very seI1-
Gus depreciation tn another section.
. The effect OF the new subway s!S-
tenn will be to eIualize values III the OUT
living boroughs. probably creating a ten
I d.ncy to decrease. TO some extent. tho
land values in the central borousH' the
with regard to the central section, may
ne offset by an increase in the grown
NJ tho CITY. However, the prospective
,ncreascs in land values have been very
| Ia rely discounted.
4 500 the records Of Tax and Tenc-
men, House departments
The transfer Of the tax from pui'd-
,rys 10 land can never increase we
/ csni,al value of improved land. for
| instance, IN the case or the TWO paree's
mentioned. assuming that the transfer
would opera,e to diminish the capital
value OF land by 10 per cent. tte
ammunition for parcel A would be ~
4 0oo making il worth 1913. 600. while par
90, u would be decreased In Naiue ny
81. 900 and then be worth $o''Ooo' III
ei,her case III. value OF the property
would f-, less than 100000. Ihere 10
no reason to suppose that any compen-
sa:ing increase YOU occur, as 10 the
yaiue OF the improvements
3. Under ordinary conditions IN wan
haitian tho appropriate Improvement OF
land changes on an average III "'"'
twenty to thirty years.
4. The value of a piece or vacant iahd
;s determined by the estimate formed
n, .rc net revenue which may ne on
| ,o;n,blc from that land when II can
he advantageously improved me
Capitalization OF this revenue. discounted
10 allow for interest on the money
nov invested and taxes or carr!ins
| charges. from the present time uNt'i tha'
| supposed time OF advantageous improve
mnn.. is the value. Expectation or
i. ,l,a meantime and ungGT-
| taiuty OF income are present elements
I causing variation.
: The M strictly speaking
occuples but a very small part or the
! imuroved area OF the city.
: Increase of land values is due TO
Increase OF population. increase or com
munlty wealth and many other causes
u. If there were no other element 20
t.. considered then there would be a
decrease,
II. High or los land values are TO be
. raearded as AN effect and not AS "a
cou.c. Whatever the system OF taxa
ion may be the rental value OF land
/ Is determined by M advantage to be
, III, rived from the occupancy OF the land'
, 1',.rerorc. the dcsirability OF h!eh or
, low values IS not a practical question
IL. There is no appreciate purchase
OF property In New York city WITH u
Wow of holding Il out OF use for 'ons
periods and then reselling it at a profit
,or the simple reason that the carrying
| charges are so great that such "A course
would rlean that there would he 10
! nroft. When one mar buys another
sells. and the transaction IL quito as
likely 10 hasten the bringing or land
into use rs 10 retard H.
IA No. there would be a general de
precIation OF land values. There would
bc no diminution in speculation. but
snecu,atlon would be on a lower level.
IA. Cnwhoiesomc because there wonld
ne n destruction OF land values, and a
lass of confidence. resulting In discourage
rcnt OF initiative. No speculation, nc
nionecring 70 growth or development.
Is. If land speculation were carried
on as stock and produce speculation are