HOUSING SCHEME

Hawke's Bay Herald-Tribune, Issue 97, 11 May 1937, Page 5

HOUSING SCHEME

Knowledge Lacking As To Conditions In moving the adoption of the report and balance sheet at the annual meeting of the Waipawa Building Society, the chairman, Mr A. E. Jull, made reference to the housing scheme recently inaugurated by the Government. Since the announcement of the Govern/nent's intention to enter upon a big homebuilding scheme, there had, he said, been a diffidence on the "part of private persons to embark on building, largelj because of the lack of actual knowledge as to the conditions. One difficulty was the need for information as to the amount of interest the Government Housing Department would pay for its finance. A eum of three and a half million pounds would be available through the Reserve Bank, but although the question had been asked many times in the House when the legislation was being put through. the public had not been told what rate of interest the deparbmeht would have to pay for its accommodatiou. If the rate was a very low oiife it would have a very disturbing elfect on building societies and other lendiug institutions, including the State Advances Office. The question of rentg would largely be determined on the cost of a house and the rate of interest to be charged. For instance, with a house costing from £1000 to £1200 at 4$ per cent the annual payment would be from £50. to £60, but at 1^ per cent it would be only about £18. If such a low rate were adopted it would have the effect of .argely'reducing the equities of people who had been erecting their own homes Until the Government made some prOnouncement on the question of rents the unsettled feeling would continue. This was Operating to a greater extent in the larger towns than in the country, and in Napier and Hastings there Was almost a stoppage of house-building. There were many people wanting to build, but they were waiting to see what the effect of the Government housing scheme would be. It was to be hoped that the Government .would be wise and reasonable, because many million s of pounds were invested in house property in New Zealand