The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-20
GREAT ACTIVITY IN REAL ESTATE MARKET EXPECTED
AS SOON AS END OF WAR is DEFINITELY WITHIN SIGH

was s7S0 a year and the net income
would return close to 10 per cent
We would resell at a profit Of IL, 800"
said the buyers at the close Of the deal
Two days later the broker presented
an offer OF $500 cash and building site
in Queens held at $4,000. AZ cash was
the only consideration that would be &C.
cepted the offer was refused. The dwell
Ing was valued very high before the
panic. The valuation was supported
by lending institution. which gave n
big mortgage on the property. When
hard times came withdrawal Of money
was made from real estate and since
other funds were not available to meet
the demanded mortgage the property
was taken In at foreclosure In this way
the value OF the property was reduced.
In other words, the water has been
squeezed out and the valuation at which
the property II held to-day Is even be-
low what It II actually worth. There is
property which can be bought at $26.-
600 which several years ago was as
sessed by the city at $4,000. An opera.
tor bought house yesterday at $10.500
which three years ago wasf valued by
the Tax Department at $4,000.
Such decreases would not have oc-
CURED IL there was plenty OF mortgage
money. That peace will bring back
values and produce a growing demand
for real estate il seen in the action Of
one Of the best known operators in the
field to-day. He is one Of the old school
and man who has made lot of money.
He has arranged to buy twenty proper.
ties the day peace Is restored. He en-.
tered into negotiations for the properties
the day following the publication OF the
German note asking for President Will
II,A A.
agreed to an armistice the operator
would have then and there purchased
the string OF tenements. But since the
President has made his terms uncondi-
tional surrender the professional. who
has his eye on the buying which will
follow the restoration OF peace, has de-
cided to wait for Germany's next move,
which he expects win be equalization.
He holds the opinion that at present
rental fee values Could be very much
higher and still buyers need not fear TO
invest
One must remember that rentals are
not likely to come down until construc-
ton has been in full swing for more than
a year. For four years there has been
little or no building in this city. and
building experts estimate that the city Is
so per cent. underbuilt. That is. about
one-hak the accommodations have been
provided that are required by the in
creased residential and business popula-
ton OF New York during the last four
years II will be at least two years be-
fore building on anything like a large
scale will be permitted. because there
are bound to be demands made on the
building material dealers by the Federal
Government In the Interest Of foreign
nations for brick and steel and the like
Population here will not decrease.
the demand for space will In
crease. while the supply will remain
practically unchanged. The outlook
seems to coincide with the opinion held
by real estate men and on which they
are basing the belief that peace VIII
bring a great demand for real estate in
New York.
Asked the other day where opportu-
mites to make money in real estate ex-
listed. the head of one of the big lending
institutions answered: Everywhere,
but particularly downtown. That sec
ton OF the city has not been exploited
as much as some of the uptown districts,
and in my opinion that il where profits
will be largest"
He knew of many properties In uptown
localities, he said that could be bought
cheaply and probably resold later at a
good advance. The market ahead Is
both an investment and speculative one.
Conditions now savor the investor. II
will be the man who buys on the eve Of
an era of peace and good will who will
make the largest profits. because peace
will bring higher value TO every inch
Of real estate in this city. The In
crease will be evidenced not only in
urban sections but In the suburban dis
tricts of the city.
New York is TO be a much larger city
as a result of this war