Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-01-09

TO BUYNOW OR WAIT IS
QUESTION CONFRONTING
REAL ES7A TIE INVESTORS
Warns Homc-Scckcrs Not to Con
fuse Value and Price Terms
In Purchasing.
ny uonisI,'r sAVII.LI2

Inc question which IL uppcrmost In
the home seekers aud Investors mind
row regarding rca! estate is whether
To buy now or wait and hope for re-
duced prices in the future
do not believe In trying 10 pre-
diet too far in the future. If we plan
the present well and ;akc due account
of the mistakes made in the past We
need no, fear the future. Predictions
regarding the future are but cs,i-
mntes at best based on what has hap
pcned In the past
We have all heard II said in what
a bad plight the person who bough,
now would be In II priccs should
come down 30 per cent, or even 100
per cent. Is this really true. how
ever? Take az an example tho man
who buys now Il house for 10000.
which could have been bough, in 1919
for $1,000. and which can he built and
sold III 1921 for $1,000. II would
seem that he would stand to lose s5,-
ooo But does he? Il II not true on
the contrary that in case this decline
In price did occur, that the same man
would be equally az well of at the
lover price as at the higher price?
II he has to sell his house for $4,000
can he not buy one equally as good
for 5000. perhaps even newer and
more modern, although in another To-
cation. Does he. therefore, lose any
;hing?
The reason for this misconccption
's generally the fact that Il good many
persons confuse in their own mind
the two tcrms--valuc and price
which are sometimes quite far apart
y man who happened To be ship
wrecked on an island literally covered
with gold nuggets would be no richer
than you and unless he happened
To be rescued. In other words the
gold would be valueless TO him be-
cause he could use IL for none OF the
purposes 10 which We put gold. He
would be potentially rich and il would
all depend on whether he was res
cued or not The price OF COM
modify. or article. or house is merely
the common method o. saying In dol
lars and cents the worth of the house
10 its owner. and rather than saying
that the owner will exchange the
house for so many hours OF labor or
50 many OF any other articles.
This is one thing that we must
get thoroughly In our minds---;hc dis
tlnc,ion between price and value. Be
cause a thing is high priced does not
necessarily mean that II has a cor
responding value. neither does the
reverse ~ this follow because quite
often persons have bought property
Of great value AZ "a corrcspouding!y
los pric.
The wise course 1t seems TO mo
for Tie prospective purchaser 10 pur-
SAFE at this time is TO be careful To
analy2c his requirements and desires
ana buy according To his financial
ability. In other words do NOT over
buy" or buy too much of u house
either In price or size. Take into ar-
count when considering the PROPOSE
tion the fact that salaries and
wages may be required and also do
not overlook the fact that rents may
Increase on account OF the scarcity
OF homes.
1t is very important for the future
of our city that we take stock OF
conditions and realize that we need
homes in Richmond il we expect
TO grow and attain our 10000 pop
houses first and the stores. factories
and other assets will ultimately fol-
low. This is problem for our man-
ufactors and merchants as we'll as
the everyday citizen.
This problem is one which be-
licve deserves the consideration Of
all classes Of business in Richmond
and is one which ncSds some real
cooperation between the business
men and the realtors. II is of vital
Importance for many reasons and
should be thoroughly worked out
now. When our manufactures have
become readjusted and need the
services again OF our skilled Anglo
Saxon workmen and we find that
they have gone to other communities
here they can be housed 1t will be
too late to consider this problem
This housing problem is basic and
should be taken up first of all and
some real constructive effort cX-
pended in working it out to the sat