The sun., 1918-12-29
OUTLOOK FOR HIGHER VALUES
IN MOST SUBURBAN SECTIONS


after opportunity knocked at his door,
regretted that he did not accept the
chance to purchase in the suburbs,
which have since become enEulfed In
the progress Of the v expanding
city? How often has he regretted that
he did not bring up his family in the
healthful surrounding of the free and
open country, in n home of his own,
where he could install little contriv-
ances OF his own ingenuity and ar
range the grounds to suit his own
taste? How often has he regretted that
he did not try TO Goa from good old
mother earth the wonderful health
giving produce which she is so will
ing to give? The regrets are innum-
cradle. Yet the youth OF to-day, who
will be the old man of tomorrow, Is
following along the same path, stepping
over. ducking or passing around the
Same opportunities which intercept his
passage daily.
1t may be that the reason why the
opportunities offered in the country
are not seen Is because having lived
constantly in the city he has learned
~ oSO Yea OotoAt q NlN1 oSBtNb,
regardless of where IL may be To-
Gated. City conveniences in a suburban
development have led many to view the
suburbs as n city project. Maybe II
h difference is explained more will
see the light OF opportunity and, think
ing along a different line, will learn TO
differentiate between the city and coun-
try as q real estate Investment project.
The basis OF valuation OF suburban
property differs fundamentally from
that OF city realty. 4 real estate ex-
pert who sets out to appraiSe a piece
of city real estate considers two fac
tors. These are the income value and
h replacement value. BY income
value is meant what the property will
return on the amount OF none in.
vested. By replacement value is meant
a fair estimate OF what It would cost
TO replace the building as it is at the
time of the appraisal. If the income
from a city building is abnormally
high. as some are apt to be under thc
stress OF unusual demand, the ap,
cpraiser invariably sets his figures on 6
Lowell with the replacement value Of the
land and building. II the income 1,
unnaturally low the valuation Is usu'
ally reduced to n figure below replace.
,ment.
The question OF replacement is to,
day one OF the chief influences affactinl
all, real estate. but more especially thu
suburban developments. because o.
high building costs. In the country G
purchase is primarily considered by
the investor from the viewpoint Of {
home. No income is expected from the
house he buys as the benefits derived
from the comforts and surrounding!
EAR considered of greater value thar
any income that might be derived il
purchased merely for renting purposes
Therefore, the value Of a country home
is based practically entirely on re.
placement value of land and building
Replacement is more easily made In
+ the city than in the country. All in
dividual city building might be de-
stroyed and in its place a taller and
greater income producing structure
could be built. A change in a section of
the1city can be met with n change IN the
type OF building by means OF alter
Rtions. But in the suburbs, conditions
are entirely different and it is be-
canse OF this difference that the re-
placement value Of the country home
IS greater and at present more firmly
fixed.
The war. which has been blamed
for every untowprd happening, has
by some, beer viewed as a blessing in
disguise. II is not meant in any way
that the war was welcomed, but hav-
ing come, its effects have proved the
old adagc. IT'S an i'll wind that blows
nobody good" 1t has practically fixed
the replacement value OF the country
home for q number OF years because
rough acreage cannot be improved
with streets. curbing. sewers and other
improvements necessary to Il complete
community at less than double the
price il formerly cost to do such work
The reason is apparent. 1t costs more
for all the materials, and labor Is
twice as high as II was FIVE years ago
1t Is apparent that the char ged condi-
tons naturally act as a safeguard
against what was formerly one OF the
most dreaded influences IN O country
development.
Country homes or plottage bought
now for spring occupancy or improve
.ment consequently are not under the
same influences as nee prevailed, the
possibility of ruinous competition
from later developments, perhaps OF
an inferior grade, near by. On the con-
trary. county property is to-day in q
position to benefit from a steady rise
in land values which is confidently
expected. The increased values to ac-
crue are predicted on the strength that
the demand for country homes will in