Show L I rt Family Investment Talks Talk f By Roger W. W Babson j i Real Estate Investments i 1 I I t i Babson Park Florida March 2 26 G. G 1128 Roger W W. Babson today dl cries ClUSes the fifth firth o of his ten talky talks on onI I Family Investments Iq Last week ho lie hoWd hold Wd how bow to U use UBO SC Building and Loan o Today ho discusses mother step In acquiring success r i WHAT CREATES VALUES Real Estate Estale Is an au absolute eBsen- eBsen U L It ia is one o of tho tho- oldest forms of and aud Is preceded receded a as s an estment only by women slaves sla W a 1 d cattle which were moved about Iron from m Place to toI place before their I ic Tiera acquired or claimed title to o i Hand f land i Now that all free reo range ranger r s almost gone It probably Is best for one to Secure some la land d even fore getting woman slaves and aud title ln in other w words eels before get get- r S married a young oung man alai lees docs to get a borne home I Real Heal Estate is essential i thEre is 8 a 8 a tr tremendous iv i am amount of it Also Alao Real Hoal la Is M l to 10 the old Id m law of r demand Ind ad Supply ol hei a aol as s ia is oil oil sugar and ai I and anel thIngs It H is not enough that I 10 a demand sugar should be useful and Iu order Mme to lo mako make i toon eel cy lu Iu h these p products cis thoro thorn must a a. mere d Supply So long as ase e Is 8 Pulls I tle an as over Ocr Ver au y there thero Is isor or no Do Dr profit nt in hl connection therewith Hence j r altho everyn every evory m Inan an i o ow own WD n his OWn Wn and home and lf JC u Uio Ull he farm Carm the h factory or shop re he no dnA does hl aP ul s ot y yot of of Ung eting g in land and i is s considerable 1 a o of It problem em an and d l jn In t fact ct a business Itself self Just because it is laud laud lor c use It il tore Bre fe is cheaP does not Ina In- In l bg log g In ln a profit proUt Hence e w when invest invest- land It ll Is ls Important to buy l 11 failed B the tho th supply of oC which is d' d lf if It ll Is I POI aho ld d 1 he be acreage the tho land lanel e ell I for I I halls y C fertile rUle or orG orr oC ld G U or r the tho tract should b 10 ho 0 large larSe If o It U ls la suburban Gerry er I it U Bh should uld bo be In hi a It is 85 nod well weB built up If It t terser torner ner Property Poorly It should bo be a ar let roas s or r a ma main maln 1 artery or orsome some oth other or ad advantage van s which few l lots have I LH bH U INVESTMENTS As stated previously by me mc since I the German Gelman mark became valueless and these theao al valueless closs pieces u of paper palter I I WHO hero used to pay up what previous previously I ly were considered the tho VCr very highest grade bonds and mortgages careful I investors have not put all their money in iu bonds bouda and mortgages InI Instead In- In I stead they have divided their thou funds fronds I Into three parts third one-third bonds I band and mortgages third one stocks I j and equities and third one-third land and II buildings This Is a very good policy polIcy pol- pol Icy for or even on a n young man to follow 1 I from tho the first of first after of course ho lie has bought and paid laid for a homo home I Altho Altho except In the tho case caBe of oC i building on ona ona I In One firms one must have a make mako it earn carn a n property in lu order to j I yet do not forget that usually only the tho land appreciates in value Build Build- I 1 Inga depreciate and they are aro very likely to lo dt depreciate quite rapidly during durin the tho next few years if H the tho building declines u as I cost coat of oC new many it will Moreover l ItI it i should be remembered that It costs I certain building b no more to build a In a good location than u a poor lo 10 lo cation and it is tho the location which I determines whether or 01 not tho the thoi thet i t building pays Many build In iii u-rong u locations out of oC pride or because to own land laud when iti It they happen I It i would ho bo much bettor for tor them toI to lo I t sell the tho land the they own at what they 1 Real noal can can got and c build elsewhere estate holdings should bo be diversi diversified different locations and dif different fled fied as to ferent ferenC kinds of property but dont don't I put too much into buildings ReI Remember Re- Re I member that rea real estate estalo profits must come front from the land when buying huluS onto ono first land for a ahome ahome home it Is better hetter to lo buy more moro land than is is' s l n Wed needed and build anti build a small house than to economize on the be I land The house can cnn always s 's I bo IJO Impossible Im Im- added to but later lator It may lot the tho adjoining possible to buy REAL COST OF CARRYING I I Continued on page eight f I w Real Estate Investments Continued from Crom pago page one ono d. ESTATE When buying good bonds or paying dividend stocks ono receives interest and has hns a small income tax lax to pay When buying stacks that havo have not yet reached tho the dividend paying stage one receives no Income but hut has hay no tax taxes s to pay On real estate state however local taxes must be paid irrespective of income while income taxes must be paid in addition ad ad- Ihen Income is received This tax lax tilt situation is very serious today and anel local taxes in most communities ties are apt to become higher rathor rath- rath or titan than tha n lower New Now road are arc creat crent- creating in ing values but hut they hey also are arc greatly increasing taxes so that in some sonic communities tho the taxes aro are dug ing in more rapidly than the Iho values years ago I bought hought Some ionic property midway between Boston Boston Doston Bos Dos ton and Lowell Massachusetts 1 at 20 20 per POl acre aero which seemed very vory cheap at nt the time lime The Tho other day dayI I sold it at nearly tho the price i paid My wife congratulated meon mo me moon moon on my profit but hut a little figuring showed that I had paid In those L twenty five years ears local taxes on that land to an amount greater than the total amount received In other lOrds I would havo have been better hetter off to lo have given tho the land away directly direct direct- ly after buying buring it than to have hold held It and Iud sold twenty five years eara later at profit proUt When Interest charges aro are a added ded to taxes land soon eats eatH its ils head load off SPECULATION VS CONSTRUCTOR l Finally let mo me sa say that gam gambling gambling gambl gambl- ling l- l ing in real estate is no different than gambling In n tho the stock market marJet or at poker All forms of gambling or 01 attempts to get gel something something- for nothing are aro wrong Time Tho man who buys bays either cither acreage or a corner lot and just t sits sils on eu It It and amid does 1008 nothing to lo Improve It is both oth a n gambler and anda a parasite on tho the community If rr he be profits at all it is because of the tho efforts and improvements of others Othe Ia Laud lid becomes more valuable le either thru nigh Increased population or 01 improvements im- im and tho man who does docs nothing along either of these lines is iG a poor citizen H Real al profits come comeIn comein comein in real estate as RS elsewhere in iu rendering rendering rendering ren ren- dering needed service And Anel now especially you OU should render gouda l' l service If you OU want to profit thru thlu real estate Investments be because h b- b causo cause when business is above the normal 1 lino tile tho the now showing ulIS' it to lo he be 11 above norm norm- l real real estate Investment morel merely for speculation is very apt alit to he be rIsk risky |