New-York tribune., 1922-12-10
Real Estate
Values Have
No Top Here
Always Moving Toward New
Peak; Shrcwd Investors
Have Turned 10 Property
After Making Comparisons
By w. c. Mansfield
Maraaer. AIbert B. Ash(orth

Many, II not al, students OF real
estate viii agree that land values
everywhere will continue TO increase
IN tho ssmo proportion In the future
az in the past, This might, OF FIRST
thought, be considered an exaggerated
statement and thcre would be vHri-
snee Of opinion among the students Il
they we're asked 90 prognoetieste the
advance IN price Of real estate, say IN
the NEXT twenty % one hundred yearr'
I. hes often been thought that INC
ton ariee" Of property was reachco
@to-dsy." hut even tho most eonserya,
live appraiser Of real estate has hhd
his eyee opened "to-morroY" when the
asrpe property brought at Gale . much
higher price. Particularly Is this hp-
oIicrbi % Manhattan, whore there II
a limited amount % ground area, pre-
eluding any possibility Of expansion.
Tho tinsworn hut true e1press on.
Supply and demand, wac never truer
than when applied 10 real estate N
Manhattan, because with the cver-iu-
ereasing population Of tae great nc
tropolis g demand In normal times ih
e-esicr than the supply, resulting. IN
higher prices for properties whether
for sale or lease.
AS concrete examples, pre- war rentals
were moro than doubled during the
peak Of business and sale prices en-
nsacsd from 20 por cent upward, Pm
marjly By renson Of tho demand eI-
cceding the supply. Prices hove re-
eedcd only n triho So compared with
eke increases, despite the deefessc IN
business eypansion, aud IL Ia an nc
knowledged fact that real estate In all
its branches will not return 20 prc-Tar
levels.
Realty Assures Results
The careful and conservative invos.
tor turns to real estate a. the best SC
curity for his money. Although roGl
estate does not, generally speaking, ef-
ford the greatest speculative value. II
nevertheless 10 more tangible and
Yields n better proht or income, In toe
long run, than any other security.
IN Is indeed significant that 20 many
merchants, firms and corporations orc
now buying their business homes in
gtead Of renting, "a they have undoubt-
ediy found from experience that the
unvritten rule Of 1T is cheaper 20 rent
than OWE" wea never true and that
such a theory probably gained public
approval through the insbility ef ten
Ruts 20 finance the purchase o. the
properties they occupied. Having ~
landlord 20 conNnd With ard constant
increase q Trntsl the owner - free
from all worries Of the usual tenant
IN this respect, aud enjoys the proh'
on his investment as land Ttiuoe ~
crease.
Buy Right Only Advice
Even the investment In a modes
home By purchaser With only
rnoderate income, which permits Of 1
/ small yearly reduction in the principa
/ In addition 70 paying AL esrrylnl
/ charges, Is safe ana sound. u IS trr,
that such investment requires 8 lonl
time for the payment Of The entire g..
dohtedness, but n the purchaser hH'
reckoned his ineome properly and doe
not undertake 81 obligation beyon'
his means, be Is preparing for th'
! future By systematic saving. The car
I ryinR charges Of the investment az
usually lces than the purchaser hhi
been paying out IL rent and this dif
ference, together With payneht on th'
I principal, 10 a definite saving whicl
/ heretofore hos not been accomplished
and probably would not be otherwise
Furthermoro, the ever-existiRe prob
I lem Of meeting the increasing rental
and the consequent troubles of a ten
ant IN Gndin9 another suitable hom'
when IL becomes necessary 20 move
II higher rent cannot be paid. are OBJ
viated. The investor thus hnds reiie
IN The knowledge that he has a per
msnent home which &c can enjoy un
molested and rear the benefits Of th'
croft on his investment, which, II ~
has purchased az the right price, y
sure 10 conc.
Pays Well These With Patience
Berg impatient for q quick prof
no doubt prevents many people frou
investing in real estate. The inaatiabll
desire 70 make an Immediate turnove
a. gain, regardless OF the risk IN
volved, results In tho investment II
securities which are more speculative
than real estate. You can ek9ose mos
any parcel OF Land % random, either 1,
or out OF New York City, and its his
tory Will show that Il has had
phenomenal rise IN price cxtc ncinl
l ore~ fhn nat derafa