Evening star., 1934-08-30

actually the most they can pay Is IS
on such o loan.
That is the important point for
the property owner to know. What 1t
costs him to improve his property now
instead of waiting until he can accu-
mulate the cash. 1t costs him IS for
each SOS of improvements secured
year in advance, with the cost for
longer periods in proportion. Every
approved financial institution has q
table OF calculations furnished by the
Federal Housing Administration from
which the maximum cost to the prop
erty owner for any size loan, extended
for any period up to the maximum
permitted, can be figured. Any prop
erty owner can tell for himself just
how low this charge Is by comparing
it with the cost of similar financing
extended by the best institutions in
the country, which in the past have
made as low q rate as 1t Is possible
to make and still run their business
profitably. No such low charge would
be possible without the Government
guarantee to the financial institution.
Costs Analyze0.
1t NAV be well to touch on another
phase of this modernization program
which is being commented on In many
quarters. It is argued that property
owners will not want to repair and
improve their homes because the cost
of building is too high. Before this
program was launched, the Federal
Housing Administration made q care
full analysis of building costs, includ-
ing the costs of labor, and 1t found
no justification for the statement that
building costs are out OF line with
the cost of other things. This analy-
sis showed that the prices OF building
materials and labor at the present
time compare quite favorably with
the general prices of other products
in reference to the 1925 price level,
which has been generally accepted as
the level to which all prices must re-
turn as prosperity returns. Contem-
plating the natural trend of prices,
therefore, there is every indication
that the trend of building costs will
be upward and not downward. II this
is so, the time to buy is now, while
every element in the nation, the
manufacturer, the building supply
dealer, the contractor and labor Is
cooperating to make this program a
success.
But, here is o factor that will save
you real money. BY reason of this
credit plan sponsored by the Gov
ernment, the contractor and building
supply dealer win receive cash for
their work or materials and there
fore, the property owner will be able
to secure the lowest cash price for the
work he has done. This saving
should more than cover the finance
charge you pay.
Knowing the desire Of hundreds Of
thousands of people to undertake the
delayed repair and Improvement work
on their properties, the universal de-
sire for better home and community
conditions, and recognizing the un-
usual and attractive plan under
which the credit Of the property
owner now can be utilized to &c
ahead with such work, it is reasonable
to assume a widespread use Of these
| new credit facilities. Therefore, il
may be well in closing to express the
attitude of the Government in con-
nection with the use Of this plan by
property owners.
Program Called Sound Policy.
The question has been asked how
the Government can justify recon-
mending that the individual should &c
into debt to make repairs and i'm.
provements to his home. Some folk,
] seem to feel that the individual L