Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-31
HOME VALUE SET
AT z YEARS. PAY
B. & L. Survey Decides Costs
for Families Earning 500
to $4OO a Month.

Paying two years salary for the
keys" to his own home u sound
economics for the American working
and Home Owning Committee Of the
United States Building and Loan
League. This Is its 1881 answer to the
ancient question, How much shall a
man pay for his home" based on a
survey conducted among the leagues
Nationwide membership.
The QUESTIONABLE sent out by the
committee asked estimates on capital
costs Of a home to be undertaken by
families earning from 500 to $400 q
month.
Answers from Honolulu and from cities
from Portland, Me-, to Portland, Greg,
held that the head Of the family might
jingle the keys to his own 81, 900 home
in pockets where the maximum receipts
are SITS a month. This ratio, 10 times
the annual income, held true between
estimated home costs and salaries from
SITS to $400 month. For incomes of
500 and $3.50 q month the average
estimate of suitable home costs was
It's times the years income.
These figures came from associations
in towns of more than 10000. Slightly
lower estimates are reported from
building and loan officials in smaller
towns.
simultaneously with the publication
Of the survey results, the Home Build
ing and Home Owning Committee Of
the league emphasized the need for
every prospective home buyer to counsel
with experts in house financing before
deciding on the capital cost OF the
home. Many of the replies to the
QUESTIONABLE stated that too many per-
sonal factors entered into every indi-
vidual case for any general estimate
to be made.
Employment Essential.
an many cases more than twice the
years income may be invested safely
in a home" the committee members
agree. when a man is using his pay
ments on his home as his plan Of
systematic savings, including that part
Of his budget set aside for savings as
we'll as that set aside for shelter in
the amount paid each month to a
building and loan association, his home
costs NAV reasonably be greater than
those outlined here. The home owner
ployment, where a home more costly IN
proportion to income is undertaken"
A majority Of those answering the
QUESTIONABLE claimed that families with
incomes of less than a hundred dollars
a month could afford homes on the
instsllment plan If tastes did not run
too high.
IAN of the building and loan asso-
Citations registering opinions plead tnat
the circumstances and locality OF the
individual wishing to acquire home
must be considered before he can de-
eide definitely how much to invest in
it." SAYS the committee. six or seven
factors which may vary with the par
ticuiar case were listed as determinants
In the all-important question OF what
shall a man give in exchange for his
home.
Experience has shown that rarely
is the individual home purchaser well
enough acquainted with all OF these
determining factors to make a safe
estimate Of what his home capital
costs should be. Building and loan
oficials. on the other hand, have a
well grounded knowledge Of the exterior
factors. such as the standard Of living
in particular localities, the building costs
there. the rate of taxation, etc.
When the would-be home buyer has
supplied information about the size OF
his family, the most important single
factor. the building and loan ofncial
can give sound advice about costs to
be contracted for. The methods OF
financing the home loan. whether or
not junior loans will be necessary, ana
the method Of purchase, whether upon
a cash basis, with first mortgage only
or first and second mortgage. are also
to be considered in the capital cost
decision.
Point Well Taken.
Zone answer to the survey pointed
out that a family living in rural
district where they could grow fowls
and vegetables to help NIL the larder
could undertake a more pretentious
home than their city cousins on the
SEINE income. 1t was point well
taken.
role akin to the family lawyer or doc
tor in these cases. The association
must be on the side of the patron, it
must advise what is best for him in
the long run, both because 1t is coed
business and because the traditional
position of the building and loan asso-
Citations in their century Of existence
In America has been by the home
owners side.
I'm addition to the counsel on CAPT.
tai costs, the association oficials stand
ready to confer with the patron on
everything in his home from founda-
ton to the shape of his roof, from
the garden walk to the kind of window
shades the living room should have.
"The counseling abilities Of the asso-
Citations have made many happy home
owners out OF those who were tempted
to abandon their dream bewildered by
the array of factors complicating the
decision on capital costs"
c. Clinton James Of this city, direc-
-. - %ha TTnftad Gfates league iS a