Page:Hints About Investments (1926).pdf/118

 This advantage, however, is only one of degree, because even houses that are too elaborate for a declining neighbourhood often have to be converted into flats or "maisonettes" before they can produce a revenue; and in spite of it, mortgages on house property seem to me to be nearly as unsuitable for the private investor as outright ownership.

If he indulges in mortgages he lends money to the owner of house property or to the owner of a lease, usually up to what is believed to be two-thirds of the value of the freehold or the lease. The owner pays him interest, half-yearly or quarterly as may be arranged, and is usually bound to repay the amount of the loan at any time, on receipt of such notice as is provided by the contract. The lender can at any time transfer the mortgage to any buyer to whom he chooses to sell, and in case of default by the debtor can exercise the right of foreclosure already described.

At first sight one might well ask, What more by way of security could Shylock or Master Dumbleton require than property which is worth half as much again as the amount lent, with a right to demand repayment at any time, and seize the property if the debtor fails to pay? And in fact those wise and wary investors, the insurance companies, habitually place enormous