Indianapolis Times, Indianapolis, Marion County, 22 June 1952 — Page 37
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“22, 1952 2 Section Four
Sagi ~
The
ndianapolis Times
Real Estate ars
SUNDAY, JUNE 22, 1952
PAGE 37 | Classifi
They
Herner learn.
Built Their Home--Now Have A Place To Rest Weary Bones
“MY ACHING BACK—Plenty of hard work when you build your own home, Mr. and Mrs, Leo
Real Estate—
Public Is Hot « For Cool Air
‘By DON TEVERBAUGH Jstae of Sioux, Falls, the Times Real Estate Editor city in South Dakota. THERE'S ANOTHER BOOM Levittown, Pa., will also have
TY AR "J
Ty «+ and home buflders.. It is air con-/swimming pbols, 20 playgrounds, * 98. ditioning for.the home.. And itll/a $25 million. mi}é-long s Se A “prow ey he the bighrest—thjn since the ranch house craze. A survey just completed by and -sewerage system and a $300,House and Home Magazine cover-/000 town hall,
fng 35 major cities, indicates air|
hdh 4
atl i
largest |
hobping soned, cok couple. AR Dg ative: Tad nape “peopls do it] o
| Working nights, week Open House "Ran
g center; = dozen-churches;-snother {dozen schools, a $5 million water| With cider block?
larly when you start building
Just ask Mr. and Mrs. Leo R. Herner. They learned . . .|
the hard way.
Bud Herner, 26-year-old semi-| skilled mechanic at Allison Plant, and Norma, who helps the family budget by working as a waitress deicided last August to construct
{in the Danube Cafe here,
their own “dream house.”
ieven built a birdcage
{didn't disuade them in the least. poking its head up over the hori-(16,000 new homes, 177 miles of After all, if William Butler Yeats, zon for the real estate brokers/paved streets dnd sewers, eight the Irigh pet, could make a home
lof, cl
whenever they had a chance, the Right now it is just 5000 acres Herners began the huge job of conditioning will be one of ‘thejof rolling farm land that happens clearing the heavy-foliaged land biggest sales attractions in the to be near the site of three or four
8S.
By GEORGE McEVOY Life can be stimulating and so frustrating . .. particu-
Norma and Dad and I have The fact that Bud had Pie really made something for our
jon the south side near the new
»
TIME OUT FOR CHOW-—A cup of java helps keep down the dust—and there's plenty of
both.
Mortgages and Deeds Realtors Golf Equal Last Year Again Thursday
your own house.
May totals for mortgages and!
—-—
The two former high school sweethearts from Manual Training High are justifiably proud of their new home. Bud says,
“There's & great feeling of ac|complishment here. I feel like
year at this time, the Union Title Co. reported today. - For May 1190 mortgages were recorded, compared to 1081 for May, 1951. May deeds for this year totaled 1640, compared to 1666 a year ago. The totals for the year are 5321 mortgages-—down. 46 from
Leon Sullivan announced. Tee off time starts at noon.
lives; "something fine and lastng.” . ; | livan said. He grinned, looked at Norma, and added, “But, oh, my .aching. That digging was rough.”
fouy from ’51. 'to follow at 6:30 p. m, a he ER LT RCS oan re gyi cho’ Has Two Baths
Sh
he . .
The second of this summer's Indeeds recorded in Marion County dianapolis Real Estate Board golf all, it won’t be anywhere near show the home building pace tournaments will be held Thurs-the amount permitted by Reguhere to be about the equal of last day afternoon at the Hillcrest lation X. Country Club, tourney. chairman!
Reservations ‘should be: made return. '51, and 7804 deeds—down only early for the tournéy and dinner]
Real Estate Teen eesnasT39 ‘Business : Small Home Plan .....5...:.39
Criss ssa r Ent at Ey 8:
ed cv wnian sr sone BODE ’
Low Interest Keeps Housing Cash Tig
Regulation X
Has Had Little Effect
By GEORGE H. DIRKS Partner, MeCord-Dirks Mortgage Co, !
Many a potential home cause he is in the market for
Change
buyer is puzzled today. Bea home, he is carefully read- |
ing everything about current trends in real estate, and !
finding some conflicting ideas. He wonders whether prices
will continue upward, level off,! for turn down. | But, needing more space, he de{cides to buy anyway, provided he jcan borrow a good-sized chunk of the purchase price. And he’s § finding that § mortgage hard to get, particularly if he's a veteran looking for a VA loan. { This is contrary to what he reads about Reg-
Mr. Dirks
‘ulation X, recently in the head-|
lines again because down pay{ment requirements were relaxed. {The new terms of the regulation lead him to believe if he buys a [house costing $14,000, as a veteran he should be able to borrow $12,000 if he needs it and can {qualify for it. But he can't get the loan. At least if hes can find a lender willing to consider a VA loan at
The answer to this problem is {simply that that the 4 per cent
, y maximum interest rate the gov-| Men over 50 years of age may ernment permits lenders to charge play nine holes and double theirion VA loans is now too low and score, figure their handicap andthose with money to lend are enter it in the tourney, Mr. Sul- putting it in other’ investments!
{where they can get a better ¥ P The buyer who. cah. pay enough money down to complete his purs chase «with an—-FH¥y idan - finds. the going a little easier. The maximum - interest - the. government permits on-FHA loans is 43 per ent, but that extra one-fourth is eénough to attract lenders to these loans, although fhe rate is still border-line
3 1. highway 31. Daughter # } new steel and industrial plants] aren, 8, “helped” by testing-the
consistency of the surrounding|3
1953 market. : And for the next few years the now under construction. i ccent is going to be on selling. But there's one thing missing : : New ramilies are now being|from Mr. Levitt's plans—a movie "5 Puddles, d fairly welll started at the annual rate of only theater. la i i Snd his father, Leol . 700.000 a year and to keep the| It's no oversight—all the houses $ are ' - a to excavate.” i8 million house mérket, builders include a TV set. The two hed-G. Rerner, began os id sighed will have to develop a replacement room homes sell for $10.000 and|_, reminded ue the task. “We market for at least 300,000 homes 6 hres Dedrogin ii 317.500. dug and dug, and just when we per year. \ Pe
: ‘were deep enough, along came a Air conditioning will hit first) The people are so anxious to terrific rainstorm and filled the
fn the luxury priced homes and buy, she Builder yeports, hat the dang thing up with mud” haps the higher of the middle new houses have to “allotted.” ey Drak But manufacturers More than 900 applications have| 1 Jamost. Jit Je Suiting predict within five years any new been received for the 90 store, . Dad wouldn't Lear of it. They! house without air conditioning sites. |
i | , : {just went out the next day and] will be as obsolete as a home built] Levittown, Pa. is the biggest ried 1 in. They d i
without a plug for the refrigera- city ever planned by . private|, o and cussed the weatherman.”| tor. builder and it is the only large|” y' woo apout this time Norma,| city planned completely from thei, = cio ted a garden before the
ground up since Washington, . ovation was in, got poison ivy]
{D, C., back in 1791. “ rev KEEP YOUR EYE on the heat/ {from some “cute leaves that grew
The Dark Horse
he ai ditioning 8 iy |near a tree.” i pump when the air conditionin . . JHeaP 3 1198 the hose om Hiavhal to) boom pops. It's the dark horse Disposal Units {or oually, te se on anna in the field. | An ordinance to require all NeW | ihe blueprints had long ago been
The theory of the heat pump homes to Include a garbage dis-| partially discarded, lost, de(it pumps heat up from the earth posal unit has been introduced at nounced in Bud's drawling tones. or from water) has been knocking Cleveland. : | “Heck,” he says, “I like originalaround for about 100 years. But| The sponsor of the proposal ity.” | it is practical and very efficient. figures the law would eliminate «we used trial and error tacThe Muncie Gear Works have the city’s 375,000 garbage cans! tics.” he smiled. “A lot of errors had their eye on it for the past|when it is extended as a require- | made it quite a trial.“ 10 years. Today they're ready ment for all houses. | The house is almost finished! to go, they've got the pilot lines| This will save the taxpayers now, and the Herners expect to) all set up. jabout $2.3 million per year in move in within a few weeks. It's] I talked wite Marvin Smith, /garbage collection and incinera-| a ranch-type home, 46x24x20 feet, | vice president of the firm, this!tion costs, he says, | “or thereabouts,” says Bud. It
week: He told me they have 1500 It is worth thinking about.
29 Properties For $418,900
Twenty-nine properties
ofl |
a total of $418,900 were reported | this week in the sales volume {has a hip roof, steel casements| the Associated North Sid
! the Carr company is in charge of the sale. Price is $37,000.
North Siders Sell Join Brodbeck Firm
i § 1s i 4 S
worth |
BUILT IN ARDEN—This attractive new French Lick sandstone home at 6925 Park Ave. will be held open today from 3 to 6 p. m. by the Jack C. Carr realty firm. The rancho has three bedrooms, two full baths, attached two-car garage and a landscaped lot with 75-ft. frontage. Walter Stone of
in relation to other investments. y For that reason lenders tend to limit their percentage of FHA loans in relation to total mortgages, and from time to time a real scarcity of FHA money appears. Furthermore, the FHA loans that are made are subject to closer scrutiny, both as to security and borrower. Partly for this reason the FHA loan is frequently lower than the maximum permitted by Regulation X, A big part of the problem of the mortgage money “freeze” would be solved by permitting the lenders to realize a 41 per cent return on both VA and FHA mortgages.
Money a Commodity
Money is a commodity similar
automobiles, furniture, food and “{clothing. Its price is subject to the laws of supply and demand. This price refers not to the cost of the article itself, since dollars can't be bought and sold for other dollars, but to the price paid for the use of money—in other words, the interest rate. When the amount of money available for lending is greater than the demand by borrowers, the price, or interest rate, goes down. When borrowers begin to {compete for available loan funds, {the price goes up. That's the situation we are in now. By the nature of our economic
heat pumps installed throughout the nation. They service every- . thing from huge government JIM ES L. Rainey buildings to cozy homes. . . COMPLETELY AUTOMATIC, JOINS Security the change-over from heating to cooling requires no switch—it| Security Mutual Life Insurance operates off a thermostat. {Co. today announced appointment The Marvair pump, manufac- or James L. Rainey, C. L. U,, to
Jured bY te Mifule 2m, Somes [represent the company in the Inn models, from 0! -| power. Right now, its price will dianapolis area as general agent.
|around fenestra windows, heating, even space for a patio. - Actually, it's an ome, set on a good, rich piece
“lof land. Norma's modest garden Whiffing, the sales were: «gives promise of filling many a
future salad bowl.
‘Mortgage Firm In" New Offices
attractive
11 1 Iwi OU 1TH THN "YYyYyN YS »f
»
pretty well restrict it to homes costing $20,000 and up, Mr. Smith guesses. out of well water. In a test house located in northern New Jersey a 3 horsepower heat pump maintained a 74 degree
temperature when outside air was,
only 23 degrees. The summer cooling capacity was more than
adequate for the five room home.
“It's the cooling job that really stands out,” says Mr. Smith. It doesn’t just cool the air—as other air conditioning plants—it reduces the relative humidity to about 45 per cent.
8: = » He Builds Cities That guy Bill Levitt is at it again. He's building another city «this ‘6ne is in Pennsylvania. The city, only in the blueprint stage right now, will have an estimated population of 70,000 persons by 1955. That's about the
coms, in $31,500.
Their model pumps heat!
8 the
Mr. Rainey is located at 712 Kahn Building. Mr. Rainey comes to Security Mutual from the Berkshire Life. Before that he held positions of home office agency supervisor for Missouri State Life, general agent
for Guardian Life, and manager,
for Great West Life. He became a C. L. U, in 1947.
Mr. Rainey is a member and § past president of the Indianapo- * lis Life Underwriters Association, : the program committee of the Managers and °
and chairman of
General Agents Association of
Indianapolis.
A graduate of Butler Univer-| |sity, Mr. Rainey is active in sev-| eral community and civic organ-
izations, including the Red Cross, Chamber of Commerce, the Athletic Club and the Masonic Order, Scottish Rite. He is past secretary of Rotary, past president of the Men's Club and past senior warden of All Saints Episcopal Church,
The H. Duff Vilm Mortgage Co., Inc., opens their new offices at 503 Union Title Bldg. tomorrow after more than 16 years of business at the old location in the Peoples Bank Bldg. Fo The new offices include 1500 square feet of ¢ floor " were needed to house new mechanical bookkeeping equipment purchased by the firm, Mr. Vilm said. “With this ; new equipment we have our cusMr. Vilm tomers’ receipts ready for them when they come in to make their monthly pay-
ment—there’'s no waiting,” he said. The Vilm firm represents nine life insurance lenders and 23
banks.
This Stone ‘Rancho’ is Open Today
TODAY—This rambling Bedford stone rancho at 8349 N.
. m. today by the J. |. Smith Co room, Youngstown kitchen
el LET
3
Ave. will « builders. The with dishwasher,
area and:
‘Win Co-op Pins
- general manager; Leroy Eppley,
« Their recognition was part of the to Brig.-Gen. David Sarnoff, hoard
\year, _p Of 150 million. persons... es i
| Realtors, Chairman Guy Boyd an-|} nounced.
| Listed by Secretary Wayne
| Hugh Teeters Co.—3217 N. Broadway. Fred OC. North St.
A. H.« M. Graves, Inec.—5631| Oxford St. co-operating broker| {Robert E. Walker; 3356 Manor 'Court: 3364 Manor Court. | J & L Realty, Inc.—3306, 3010, 3014, 3005, 3009 and 3013 Priscilla | Ave. Hayes Realty Service—3947-49 College Ave. : *Walt Veon Co0.—3720 Linwood Ave. co-operating broker Wayne Whiffing; 724 8S. Worth Ave. lot 94 Beverly Heights, 4545 E. T1st - St. Butterworth & Co.—3729 Layman Ave., 3315 Gladstone Ave. Gil Carter Co.—906 N. Bancroft Ave, 4511 Allisonville Rd., 5846 . Haverford Ave, lot 35 College ' (of 14 American delegates at an Way addition, 1240 River Heights, With an Annex ‘international an meeting 7831 Forest Lane. Due to expanded business of : | W. L. Br dges & Son-—3688 McKinley-made So-Lite products, which has just concluded three Birchwood Ave. the Orman O. McKinley Co., 4530 days of work at Columbia UniR. E. Peckham—1416 N. Penn- I: [Keystone Ave, has nearly versity, AS a member of sylvania St. co-operating broker doubled its plant size with the American Standards Association : y S004 g erection of the new building ad-/committee, he met with 46 other
Tucker Co.—5123 E.
NEW SALESMEN—Realtor Edgar Brodbeck fsecend, left
| checks over the sales licenses of his three new realty sales sta
members (left to right) Larry A. Padgett, Russell S.
North Side Realtors and has offices at 44 Virginia Ave.
Attends Meeting
; J. M. Bryant of the Link-Belt Co,
McKinley Firm Doubles Space
system, the savings of millions of people collects in financial institutions such as banks, insurance companies, savings and loan associations, pension funds, and trusts, Whatever funds these institutions have on hand in excess of current requirements to take care of withdrawals, policy benefits, and operating expenses, are loaned to borrowers in order to {provide investment income, which| {in turn pays interest and divi{dends to depositors and policyholders. | | The officers of these institutions are therefore bound both by]
+ Sho and [sound business practice and by|Should £2 353ume they wi alMartin E. Myers. The Brodbeck firm is a member of the Associated [obligation to their depositors and Ways able to obtain
{policyholders to obtain the best return available, commensurate| with the safety of invested funds,
\ | Borrowers Compete for Money | Borrowers of money fall into
Indianapolis plant, was one Many classes. Biggest is the fed- The amount of loan in any par-
leral government, For many years, {the government has spent more {than it has taken in, and of necessity borrowed the : difference, Cities and counties borrow!
anito pay for roads, schools, bridges his obligation.
and other public improvements. [Manufacturers, railroads, and utilities borrow to buy new build|{ings and equipment. And indi-
{business.
i A NOTE: This is the sixth of 3 series by “The Men Who Know" real estate, presénted, to Times readers to keep them alert to changing trends. With the cooperation of the Real Estate
Board, these reports appear exclusively in The Sunday Times.
as well as for what goes into them.
All these groups are in effect bidding against each other for the dollars available for lending.
At the end of World War II, {the lenders were “loaded.” During the war years savings had | accumulated faster than they. could be loaned out. People in de{fense plants made good money ‘and paid off their debts. As a re{sult, when the goods of peacetime economy, among them houses, ‘began to be produced again, lendjers were glad to put their money back to work at low interest irates, Four per cent mortgages were much better than idle cash {in the vault, or 115 per cent government bonds.
But in the past two or three |years this situation has levelled off, interest rates have risen, The sharpest impetus to _a rate rise jcame early in 1951. It was touched |off by the decision of the government to withdraw its guarantee to buy back certain lower Jnterest rate bonds at par. Since that time, the interest rate on long term ta ~~ vestments of . various kinds has BE; risen by a half of one per cent or... more. The price of ‘money has gone up! « a
Other Rates Increased
Government bonds, municipal and corporation bonds, bank loans and other forms of investment all now pay more interest than they did two or three years ago. And yet the mortgage lenders are asked to do business at the same old rate. It just doesn't | work that way. y - Particularly ‘when the lender has to meet increased costs of op |
erations just as other businesses must do today,
What would higher interest i rate mean in the way of increased cost to you, the borrower? The monthly payment for interestand | principal on a $10,000 loan for 20 years at 4 per cent is $60.60. At 43 per cent the payment would be $63.27, an increase of a little: over 4 per cent of the monthly cost.
And yet in the last five years
[to other commodities such asthe cost of the house itself has |
increased 25 per cent. Your mort= gage would still be the cheapest ' part of the deal, For the FHA borrower, the difference in payment would be even less. For the same $10,000 mortgage the extra cost per month would be only $1.20—an | increase of less than two per cent. | Chances are, much of this would. : be offset by a reduction in loan | closing expenses by a lowering | or elimination of the commission now usually charged by mortgage brokers for FHA loans.
VA, FHA Loans Sound
Both VA and FHA mortgages are good investments for the lender at a fair rate of return. The government guarantee make them go. And the experience has been good. What better proof of desirability can be offered than to point out that the 41% per cent rate proposed is no higher than the lowest interest rate now generally offered on conventional loans, where the borrower puts in 40 to 50 per cent cash: equity. At the right price, there's mortgage money available to finance a lot of housing, : Even if interest rates are permitted to go up, home buyers
the amount of loan shown in the Regulation X tables. Too many other factors enter into the pie- -
Regulation X is not a mandate to the lender, merely a ceiling.
ticular deal will still depend on appraisal of the property, its age and location, and—highly important—the credit standing of the borrower and his ability to repay
These are fundamentals of the They were in operation before Regulation X was thought of and will continue when it is a thing of the past.
Willis Adams . joining the present structure, the delegates from nine nations to Edgar E. Brodbeck — 1156 §. "a20 road today. work out world-wide standards Castle Row. The company has added a new for ball and roller bearings. Bruce Savage Co.—4420 N. gales office for their local dis- — Th ethene esse
Pennsylvania St, co-operating tributor, So-Lar Sales, Inc. Sobroker Willis Adams. {Lar was formerly located at 4726 M. G. Gerdenich — 1743 W.|N, Keystone, two blocks north of Fee Washington St. {the plant, So-Lar Sales, Inc., now § {will be able to give customers # ‘quicker, more dependable service, Mr. McKinley said. | While not yet quite complete, the So-Lar staff has already The Indiana Farm Bureau Co- Moved into this office. Announceoperative Association presented Ment of the formal ‘opening and diamond-studded buttons to five public open house will be made men who have been in its employ ’ for 25 years this week, at a ban- I} McKinley Co. manufacquet at Hotel Antlers. tu aluminum awnings and {They are Harold Apple, assist- canopies for residence, commertant manager, farm modernization cial and industrial use. They are
. also manufacturers of So-Lite department; Marvin J. Briggs, combination windows and stain-
less steel combination doors.
Big Outlook for TV --
EN bP po
ad
'25-Year Veterans
v RK “9
fieldman; Harry Goss, public relations and editor of ‘The Co-op
Official,” and Thad Macy, consultant, poultry and egg depart- NEW YORK--The United States ‘ment. . will have probably 1500 television
All five joined the Co-op .dur- stations and 50 million receiving ing the first year of its existence. sets within five years, according
Ta
BROAD RIPPLE—Carl ‘Maurice Supply and
25th anniversary celebration of chairman of the Radio Corp. of
‘the Co-op, being observed this America. He predicts an audience Ave.
Builders
{viduals borrow to pay for houses,