REAL ESTATE INSTITUTE

Evening Star, Issue 22147, 30 September 1935, Page 1

REAL ESTATE INSTITUTE

IMPROVED BUSINESS DURING YEAR The following -is the annual report of the Ileal Estate Institute of New Zealand (Otago branch) Your executive has already taken steps to record its very deep regret, at the passing of the late Mr E. L. Macassey, blit it is fitting that reference should be made to that sad event in the annual report, Mr Macassey was one of the original rnenibcrs of the Otago Land Agents’ Association (subsequently the Ileal Estate Institute of Otago), and through all his long connection with us was of great assistance in many ways. His death is not only a great loss to our ranks, but a great loss to the community, where his influence was widely felt.

• Perusal of the annual statement of accounts will show that there has been a slight financial gain for the year, but a better income would naturally allow the branch to widen its activities. Business in the real estate market for the year under review has, generally speaking,' shown an improvement, but vendors must be prepared to meet the market.. The volume of business is far from what may be regarded as normal and a lack of confidence is still evident in some quarters. The most noticeable point in regard to the real estate market is the pronounced advance in the price of building allotments within easy access of the city. It is also interesting fq note that the residential areas are( peeping further and further afield, houses appearing in places that were unthought of as building localiI ties a few years ago. • The ruling rat© for first mortgage ' money is 4f per cent., though with specially good securities and a wide margin of security it is sometimes possible to obtain finance at slightly less than the figure indicated. It was pointed out in last year’s report that 'there is no finer type of security and no finer asset than freehold property in a good locality, provided that the valuation or price is right. There are signs that investors are slowly beginning to recognise this, as a number of sales of investment properties have been made 1 during the year, the buyers concerned realising that it is far better to get 5 per cent, net or more from the rents of 1 a good real • estate investment than to I be satisfied with the 3 per cent, or 3J i per cent, obtainable from the ordinary ; gilt-edge investment. There is also evidence that people with money to lend are regaining confidence in mortgage securities as there is considerably more money available for investment. A number of sales of city properties has taken place during the year, and any such properties for sale attract considerable attention, business resulting if the vendor is willing to accept a price which promises the purchaser a moderi ate return meantime. There is. a very keen demand for houses to rent, and rents remain steady compared with those ruling a year ago. There_ is a considerable amount of house building in evidence, ho doubt stimulated by the building subsidy, and this should tend to relieve the demand for residential properties.