BUILDING SOCIETIES.

Press, Volume LXI, Issue 18405, 11 June 1925, Page 4

BUILDING SOCIETIES.

MAINSTAY OP HOME-SEEKERS-In the general appreciation of Stat© Savings Bank work in overcoming the shortage of houses in Victoria, the utility and financial strength of private building societies has been overshadowed. That these societies still exist as a most important factor in-home building recently published figures amply prove. The reason why the societies have not been drawing attention to themselves by special propaganda is that they have been embarrassed by applications for loans, which, owing to the stringency of the money niarKet, they have not been able to fully accept, ' To the man with an income above the £-100 a year which the Savings Bank insists upon as the allowable maximum earning of its clients, tiic. building society is essential, There is reason to believe that these societies will soon command more capital, and accept more customers. The statement rercrred to shows that the building societies in Victoria are in a very sound position. In the years their gross profits Were respectively £149,023, £162,151, and £173,991. In the same period their net profits ranged from 11 to 12.5 per cent., and thoy paid dividends from 9 to 9.5 per cent. Such: concerns must always be an attraction to investors, and now that mortgage securities in actual property tend to becomo< irregular in value, the building society as a stable form -J investment cannot be overlooked. First share issues to-day 'would no doubt have a favourable reception*. Tho curtailment of credit fonder loans by the Savings Bank practically invites the societies to increase their capital and their dealings with home buyers and home builders. .