The Washington times., 1920-07-31
rents WILL RISE
! FOR MANY YEARS
Only Relief in Cooperative
Ownership, Says Prominent
New York Builder.

much has been said during the last
few weeks in reference TO the ad-
visabiIity OF the purchase OF apart
ment houses by tenant owners. or on
the cooperative plan" says Frederick
A. wyckoft. vice president of the
wood-poison Company, InG' OF New
York city.
"if the property. after an investiga-
4 tion, 10 a good investment for an
! individual. II lis far better
proposition for q group OF ten
ants, who not only have the
investment, but are sure or pos
session OF an apartment for many
years to come. without the constant
annoyance OF the change OF owners,
the renewal of leases, increased
rentals. the question Of repairs. unde-
sirabie tenants, etc.
LOOK BEFORE you 1UY.
"a tenant. after deciding the integ'
rity and reputsbiiity OF the people
who are offering the proposition.
should give careful consideration as
TO the permanency of the home In
which he Is about to purchase. Much
attention should be given to the char
conditions that may arise that would
make il undesirable for residential
purposes.
Rentals in modern fireproof build
ings will advance for a number OF
years. or until such time as there Is
open competition in the offering Of
high class apartments. Under present
conditions It will take at least twelve
months to erect a twelye-story fre-
proof apartment house and no en-
scourgement is offered to builders by
labor, the reduction in the cost OF
materials. or by capital. Conditions
in 1921 and 1922 will be worse than
they are today, the demand far ex-
ceedinH the supply, unless capital
comes to the rescue.
Rentals in modern fireproof build
inss are not high, considering the
tremendous increase in the cost OF all
supplies and labor in the last three
years. 1t is a fact that in some fire.
proof buildings in the best locations.
erected about ten years ago, the
: gross income today is less than at the
time OF their erection. despite the
cry of high rents.
! "Prior to 1914, due to cheap labor
and plentiful money, there was an
overproduction in all classes Of
buildings. Rents were considerably
reduced, and only in the last year or
two have they been brought back to
their original figure. Any student OF
present day conditions can surely
realize that the events Of these years
will not be repeated.
COOPERATIVE OWNERSHIP.
"Where il was possible prior to- 1916
to assemble q plot Of five or six old
houses at a low figure for building
purposes, the price has now become
excessive. The loaning institutions
have increased the rate OF interest
and have not increased the amount of
the loans in proportion to the cost Of
the property, and I believe that with
the other items above mentioned the
high cost of building will continue for
Snumber Of years, especially in those
OF steel construction.
mot only should there be a num-
Der of tenant-owner purchasers Of
buildings that are at present erected,
but 1t is my belief that many COM
binations will be formed by those who
desire apartments built and planned
to suit their requirements with many
features that speculative builders
ignore. Under the proper guidance
and management the incorporators in
these projects will have less trouble
than the tenants of the present day"