New-York tribune., 1921-11-20
me Into the CountryHeres an Attractive House Desigr
Capital Of $3.50 Stretched
TO $I75,OOO III Fe,v Years
Lotion H. Slawson Started at Twenty 10 Wade in Ne,
York City Real Estate; First Venture Brought
Him $1,000; Buy Here, Is His Advice

the Wall Street district. Banka--par-
ticuIariy tho older nstituticns-often'
study this effect.
Because Manhattan Is an island, the
area or which cannot be increased. wc
are confronted, more than in alnsost
any other city, by the problem OF
changing neighborhoods; almost every
property owner has to face it at some
time during hts ownership Business
Is growing at an enormous pace and Il,
rapidly creeping uptown.
Ahsentee landlordism Is one of the
things which causes the most serious
oepreciation in property values, for an
ewner-o by inheritance usually gives lit
tie personal attention to his holdings.
Absentee iandlordism often causes en-
tire neighbcrhoods to run down in d
comparatively short time and creates
conditions it sometimes takes years TO
rectify.
Problem Of Changing Neighborhoods
But there are a rood MANY other
reasons for depreciation in the vaIue
and tenancy Of buildings. Most prop-
critics are overmortgaged. Many per
sons who own property do not treat it
as a business proposition and do not
properly provide for repayment of
mortgage loans; they use too much of
the income for personal purposes, and
as the need for the payment of the
mortgage comes along they cconomize
on the building in order to raise the
money improvements are passed over
up-keep is neglected, fuel consumption
IS reduced Rlower- priced employees who
render inferior service are engaged
and the first thing the owner knows
ne loses good tenants and is Obliged to
reduce his rentals to some who are less
desirable, Entire neighborhoods may
be ruined by a few landlords of this
character.
Another reason for real estate de-
probation is the shifting of an entire
business center
I'm considering the period of de-
terloration, OR, to use better word,
reconstruction, property owners should
remember that they must not depend
altogether on natural growth to re-
hab1lltate their property. otherwise the
transition period will cover too long
time. If the property is properly ad-
ninistered it will not only produce a
fair income during the months of
change. but the transition period will
be greatly shortened Entire neigh
borhoods have been known to change
from residence to business within
three to five years
1T is doubtful whether the general
public realizes the immense fortunes
which have been built up by carefully
CHOSEN property investments; too much
stress is placed on the period of
change incident to shifting centers,
and the average person loses sight of
the enormous gains in contemplation
of the temporary loss. But seldom
IS there permanent loss; it is merely
a case of marking time
when business begins to Green in
on residential section it is the first
indication of 8 coming increase in
value. But owners become dissatisfied
and move to pieasanter locations the
houses are rented, first to private fam
lilies, later as boarding and roomine
houses; and instead of an effort be-
ing made to Systematically improve
the property it is allowed to run down.
Herein the owner demo rtstrates that
he does not know what his property
will do for him. He either overstavs ytutvs
his market or, through misunder-
standing conditions, misses opportu
mites to profit.
Realty as an Investment
e! have seen business property yield
as nigh as 35 per cent annual net re-
turns on the cash invested. Bv the
right application of the principle Of
amortizatlon carefully selected,
wisely managed property, mortgaged
for rs per cent Of its value, can. in
twenty seven years, effect q completa
amortization of both the MORTGAGE and
of the cash investment Thereafter
the property, land and building can ba
owned free and clear of all encum-
brances.
New York real estate is one of the
most valuable investments a man can
make, if he studies his property and
buys to advantage. The real estate
investor always has his property under
his direct control, whereas the man
who buys stocks or bonds delegates all
his authority to others. If man is
good business man he can get greater
safety and better returns in a real
estate investment than in any other. If
he is not equipped to handle all details
himself, he should place it in the hands
of responsible agent whom he should
select with the same care that he
would his banker, his lawyer or his
physician.
Some people contend that real estate
is not a desirable investment because
it is not liquid asset, whereas main
tain that this constitutes one of it's
most desirable attributes. When a man
Is hard pressed or becomes panic
stricken he disposes of his stocks and
bonds, but where he must hold his real
estate he often finds that it saves the