HOUSE PROPERTIES

Evening Post, Volume CXXIII, Issue CXXIII, 10 April 1937, Page 11

HOUSE PROPERTIES

WELLINGTON SALES

GOVERNMENT LOANS

THE SALARY MAXIMUM

.It is. reported froni/. Christchurch that'there has. been .; almost a complete reversal of the position in the j house property market, in the last six or nine months. Previously land agents there had difficulty in making sales,-but now, it is stated, the demand is so keen that they have ..difficulty, in. securing, sufficient 'houses^ to meet the requirements of clients;. With a" view to /ascertaining1 the Wellington position some inquiries were made today and these showed that, although the demand has shown an. upward tendency during -the1 .past twelve months, there is ho feverish activity locally in the house property .market., '■ One land" agent' .stated that, there was a feeling that.some people-were marking time in view; of the Government, housing scheme.,".. Sales, '; how-, ever,- were being" made, and the: -past twelve months hadsho«vn an improvement. So far as house, properties were concerned there were buyers if the price was: reasonable.1 There was little second-mortgage money available;, private individuals were chary of, -lending money' on second, mortgage and this'of course was .a hurdle :to some who probably otherwise, would be .prospective buyers..* ;;,; ' .-'■' ■ ■.;■ : ;. ..'.." >;. ' ; ■ ; V- '.;IN THE:OPEN MARKET. /"[ ■ The land agent :wa's asked; what chance, a" steady-going married man, a desirable type in every ..wa'y, who is in a permanent position arid .could put up £150 to £200 deposit has of acquiring a good bungalow of: about five room's in one of the suburbs within handy distance of his 'Work in- the city. -The reply'was /that such.a'person wasin the open market." ;•/ :■; ;/Another', land'- agent who was. approached stated ..that::since; September the sales of what he described: as the: better class,of houses had been.noticeably': stronger/ but, his; views 'on the Sale of the four-to-five-room bungalows 'handy to the city were much' the :sarhe as, those, expressed; :by .the first estate 'agent.- The same question: was put as to the prospects in the house property market of the,1 desirable ■■ type of married.man' on £7 a week who is anxious, to acquire ;a home, and . .the agent agreed that the-position, was'not easy, but his view was that it was not abso 7 iutely'hopeless. He; said he had' a house on., his .books for which 'the owner wanted £1350 and would accept a deposit, of £150. This property was in a very .conveniently-situated - suburb' and he. had no. doubt that with, a deposit'.yof £150 . a prospective' buyer would':be''able 'to /make; satisfactory arrang/ients, as-to the balance of' the purchase1 price.'; .., ;"' / '•'. '■''"■'■ 'v ' : Particular .reference has /been made, to the £6,10s or £7 a week man—not one who has had this salary for years —and/who has a small amount of cash available as a deposit, because they are people who because of •their salary are unable to take advantage of .'the,. Government housing scheme1' and. cannot get a largei enough loan from the State Advances,:Depa'?trherit to ."enable them to build. Vl The"1 position at the; present timers that-if-a'man'is earning'over £ 6 a week,,he..can .only get, an advance from ,'the". State ,Advarices; Department of up to two-thirds of the total value of the property; if 'the weekly wage is uhderr£'6"'.a;weejf"^"/^avance' of/up to 85 per cent, may be obtained. ■.■■■' '/■/■' 'FINDING,THE BALANCE. ~'. :- ■, It is claimed, by. those who have.had the unpleasant experience- of trying..to sort but a home to : buy in Wellington that the-minimum price: asked for a modern- wbrth/vvyhile • place handy to town is about,'£l3so. If this-is so,, a man earning over £6 a week would be required to have, £450, before he would be able to /get/a -.two-thirds ■ advance from the State Advances Department. With the.help : of friends he may. be lucky enough/to/collect- £450, .but pro-bably-nine; .times but of ten-he will not, -arid,were .a married man with a young family to attempt to save that amount his children. would be- all grown up and he probably would have no need, for a: house \ anyhow by the time he got -within striking distance of the sum. : , , /. ..-;■ '.'■■' How many there are in this position is not known,'but s there are some and they, feel .that they , are .entitled to equal consideration at any rate to those who are and will be able to take advantage of Government loans arid the Government housing scheme. They contend.that the position would be made' more: equitable if ; the present wage maximum of £6 per week for a two-thirds advance were raised to, say, £7 or £7 10s ,per;week. They would then be:in the"position- of being able to put their .savings.; into a. house property. ' V ■-.•,■."'. "■- /: . ' ' ■■/ •'■ ■'.' - -