New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-12-28
By Max Natanson

Buy real estatc-I suggested in q
short article written for the news
papers last year. and now, upon the
beginning of the new year, urge upon
the prospective investor more than
ever to take advantage of the market
in real estate
The year that is passing has seen
the greatest activity in the history Of
the real estate business. In my opin-
ion. over $1,000, 100000 Of real estate
has changed hands have bought and
sold over 100000 of real estate in
1919, and still, in my opinion, the sur
face has only been Scratched
In no sense can this present activity
IN real estate be classed rs boom.
1t IS boom only, perhaps, in the fact
that such a volume of business is being
done and viii continue to be done
A boom Is an artificial inflated ex-
element or enthusiasm based upon
some unmeritorious reason
Market Is on Sound Basis
The present activity cannot be at
tributed to any such cause. but is based
upon the soundest conditions, condl-
tions not anticipated. but already here
These conditions have been brought
about, first, by the cessation Of buiIu-
ing, and second, by the natural growth
of the city and the expansion of bust
ness, and it is for the hrst time, per
haps, in the history Of the city that
real estate activity has started on such
basic conditions
The present movement cannot be
compared to those which have pre-
ceded it, as most former activities were
actuated either by new transit lines or
easy money"
New transit lines have not al ected
the rea. estate market and money to-
day for real estate is not easy. On the
contrary, some lending Institutions
have not supported the real estate
market and in my opinion have made a
great many unnecessary and excos-
sive calls on mortgages
While on this particular subject.
however, in my experience. one instltu-
tion has stood by real estate. and to
this institution real estate and real
estate men in general owe large
debt, Of gratitude. ! refer to the Met
ropoEtan Life Insurance Companv
This company has not only locrally
loaned on well located New York prop-
critics, and IN this sense has helped
greatly TO build up the city. bat even
where, in its Judgment. it deemed that
call on a mortgage was necessary, it
has displayed fair dealing to real os-
tate and its calls have been made on
Its long amortization plan, so that its
pollcy Is well known throughout the
market
1t may be well for buyers of real
estate to know that in buying improved
properties where the Metropolitan Lite
insurance Company has lhc ..An tnat
IN adoltion to the advantages already
stated they undoubted Y Nll get a
very we'll built structure. as il is the
policy OF this company to watch care
1utiy the construction Of buildings in
whach IL IS interested III making a loan.
No Grounds for Lenders Actions
Apparently without cause is the non
support of real estate by some of the
lending institutions As matter Of
TACT, the best security that a savings
bank, life insurance company. trust
company or lending institution can in
vest in is real estate mortgages. Dur
ing the last eight or ten years the in
vestments by these institutions in
stocks, bonds and other securities have
shown them substantial losses whereas
their losses in real etate mortgages
have been comparatively nothing.
Rents Are Going Higher
/. Rents during the last two years have
INCREASED. and viii continue to in
Crease, particularly in business prop
stSies. 1t is the belief Of many. par
- fSarly tenants. that rents have been
sqee-eased out of proportion. as in a
safaSat many cases, in loft sections and
business properties. these increases
1 re been over 100 per cent.
lAnts have nc increased out offpro-