SPONSORING FAMILY HOME

Chronicle (Levin), 25 October 1946, Page 5

SPONSORING FAMILY HOME

* — — r FRAISE FOR NATIONAL PARTY SCHEME WELLINGTON, Oct. 24. "Alr. L. J. Arcus, secretary of the N.Z.Building Societies Association, said there were 90 building societies in New Zealand with a total lueinbership of 57,000 and Alr. S. G. Holland 's proposals to assist in the acquisition of family hoiues would be good news to them, People who took up shares in tliese concerns or obtain ed advauces to complete a purchase, frequentiy asked whet'her the home should be placed in the name of husband or wife or their joint names and were often troubled bv the position whicli might arise- if oue should die, as to wliat death duties have to be paid and liow inortgage payinents. could be kept up. Alr. Arcus believed they would welcome Alr. Holland 's proposals to overcoiue their difficulties. "It is a stroke of real statesmanship to propose that home owners be allowed to register their homes as family homes witliout any gift duty ou the transaction, ' ' he said. ' ' The State will not lose any present source of revenue.' It will mcrely remove an obstaele which now deters many married people from making this arrangement. The wife will have the comfort of knowing that by having the home in thejr joint names, it will be liers on the untimely death of her husband aud both will have the satisf action of knowing that only one payment of death and succession duties 011 the home will have to be made instead of two. "As 1 understand tlie proposed family home selieme, there will also be provision under which ( by payment ot a small weekly sinnj ihe wife will have the home entirely free from debt on the death of her husband. This principle has already been adopted to a limited extent by some of our members thro.ugh insurance companies but will receive a great Allip if put into legislative form. I feel snre building societies will gladly lift the level of advances from 75 per cent to 90 per eent of the value. of the securily, on tlie termjUwhich Mr^ Ho1'* land forecasts. Years ago the Wellington City Council obtained legislative powers to enable these liigher advances for new houses and the local building societies have cooperated with the council in giving effect to tlie scheme under which 240 houses costing £350,000 have boen built. Certain _other local bodies have also obtained similar powers but the National Party's proposals would have the great advantage of making it universal."