Evening star., 1916-08-27

HHALL we own our home or pay
- rent? is the practical question that
millions of people have asked.
~ Readers of this magazine have ex-
pressed it in varying forms many times.
There are thousands Of people too lazy
or too Indifferent to face the issue, and
they keep right on renting small apart
ment. Many are afraid to imperil the
family fortunes by an experiment that
may fail. Inexperience and ignorance of
real estate methods deter others.
Suspicion that they may be led into
paying too much, more than the house is
really worth, is another great deterrent.
But, above all, people fear the inability to
pay the mortgage when it comes due, or
to renew it. 1t is the financial problem
that really proves the greatest obstacle
For ownership Of ones home is, after all,
an ideal to which nearly every normal
man and woman aspires, no matter what
their station in life may be.
We have always wanted to own house
Writes one womanl, but have never felt we
could afford 1t. How can we raise the money?
Could you advise me If suburban plot at
a moderate price is good investment with
intention to build home on in time writes
a mani. What want to know is whether it
Is wise for a salaried man with $50 week
to take the step. Also, how much capital
should have before buying the plot and
how much should borrow, and where?
Millions Of people do live in houses that
they own, and very large part Of these
houses are not owned outright, nor were
they built or purchased outright. don't
want to say there are no difficulties in the
way Of financing home ownership, for
there are many of them. But what hun
dreds Of thousands, perhaps million or
more, Of other people Of small means have
done, you can do. Every community in
this country can boast Of many instances
Of men and women of very small incomes
who have found the ways and means.
Every banker knows of such cases. So
does every real estate agent contractor,
and builder. There is trust company
in Philadelphia which publishes little
booklets telling in detail of workmen who
have acquired title to little place through
its assistance. There is absolutely no need
of having pocket full Of cash to pay in
full for a house and lot.
But don't ever try to buy house un-
less you have some money. To go in debt
for any large amount with practically
nothing of your own is bad business all
around. Remember, it is just as bad busi-
ness for the lender as it is for you. To be
specific, don't buy house and lot unless
you have from one fifth to one third the
entire purchase price in cash.
There may be exceptions to this first
rule, but they are few. I repeat that to
buy house on 10 per cent. margin is
bad business, both for you and for the
man who lends you the money. 1t may
be all right for the lender if he knows you
ha big earning capacity, and if he gets
sor,e kind Of outside security, such as
your insurance policy or your note with
gilt-edged Endorsements on it, and binds
you over to him, generally speaking, body
and soul. Always remember that what
is very poor business for lender can not
be good for the borrower, unless the lender
is dealing in charity.
A great many people have bought
houses on the instalment or contract