Workers’ Advances

Sun (Auckland), Volume 1, Issue 83, 29 June 1927, Page 12

Workers’ Advances

How They are Obtained

Some Handy Information

IN these days of high prices of land, it is almost impossible 4 for newly married people to afford a home of their own. Renting or flat-letting appears to be the only resource.

The undoubted advantages of the Government advancesto'workers scheme seem to be largley unknown, or at best thought too difficult to obtain. That such is not the case can be seen from the information below.

THE chief provisions of the scheme, as contained in the State Advances Act, 1913, are set out in a little brochure distributed free ?»y the State Advances Office. A copy came recently to THE SUN, and from it we learn the details of this magnificent scheme The business of the State Advances Office is the advancing of money in New Zealand on first mortgage of lands and improvements held under certain classes of tenure, free from all encumbrances, liens, and interests. The classes of tenure are fully set out in the booklet. Loans of not more than £1,250 are granted, and these loans are paid back on the instalment plan over 361 years. The department will loan as much as 95 per cent, of the cost of the dwelling house, inclusive of the cost of land and improvements, when a home is being built, which is a very considerable help to anyone contemplating building. A WORKER DEFINED A worker is defined as a person of either sex engaged (whether as employee or on his or her own account) in manual or clerical work who is not

in receipt of an anuual income exceeding £3OO, increased by £25 in respect of each child or other person dependent on him, and is not the owner of any land other than that offered as security. INTEREST PAYABLE Interest is charged at the rate of 64 per cent., reducible to 52 per cent, provided payment is made not later than 14 days after due date, and no arrears or other payment under the mortgage remain outstanding. As this really includes both capital and interest, it will be seen that the rate of interest is remarkably low. A copy of the plan and specifications for a proposed building must be provided for the department’s use. One or two other stipulations are made, such as three valuations being carried out by the Valuation Department, but the loans can really be obtained without any great difficulty. Enough has already been said, however, to indicate that prospective homo builders should make an early opportunity of calling at the State Advances Offices and inquiring for further particulars.