LUCKY LAND AGENTS.

Taihape Daily Times, Volume XI, Issue 3529, 16 July 1920, Page 5

LUCKY LAND AGENTS.

BIG INCOBJVICS AND I\fOTOR CARS.

SOME INSIDE I;\'F()RMA'I‘ION

CL‘-IRISTCHURCH, July 14“

“I honestly believe the boom has blll'St_.” said u Chl*istoliurc.h land agent to u Sfar reporter to-<121.‘.V H 0 gave as his chief reasons for the dOVOIOP' ment tlle witlldl'aWal Of fld""3nC€‘-" *0 I'9turned soldiers -and settlers and the high prices of building niatel'i:il. “ Tll9l-0 are at present about 100 land zigents in Christchurch,” he said. .».-Abouf five yezlrs ago there were S(.\lllG fol.“/._ The boom oume along justaftor the zu-niistice, and men seeing its 1,0,-Sumggaos got into the business. Most of them did well.V One man made £3OOO nefprofit in 12 months, and miother who started a. struggling business on his own now emDlO.Vs five men. There are still l‘l,llndl‘eds of people after houses, but they are of the }~.(,(,]-or 1:§'])0. Many are pitiful eases. Tliese people show" no lefftei-.~; from lznvyers «irdering them out of present hou.<e:~:, and may ofi'er. say, £SO or £IOO on deposit. No one will sell or a £SO deposit ‘now. A man can get from £4O a year for a. ‘house, :i.iid he is not going to take a £SO deposit. give up the house and take £1 a week or less tlian tlizit, in reduction of the purchase price. _ “The housing ._'problem is still -as acute as eveg, but prices have risen to 'such an exteni that the people can ’t buy. The price of timber has made some big rises lately, and t-he/fact that there is no money available for returned soldiers has made I’-I—_g’l‘("::'-li‘.

in full swing two out of three of our clients were returned ;so}diers. Then the advances ‘to .s«3{tlers have been stopped, and zuorr.-.ov’er new business ventures have :xhso:bed a lot of capital. Instwd of taking up 111ortgages at 6 per cent_ people are buying up 511 a-res and debenture_s in companies which oifer bigger returns and are as Safe, if not safer, investments. There is always the possibility of a. crash such' as in 1893, which was entirely due to_ lending money out on inflated values, as is being done now.

“Profits in the ‘land selling business have admittedly b'éen big. Hardly nny capital has been necessary, ‘and the operating costs have been comparative-; Iy small. Recently a well-known land agent sold his goodwill for £IOOO, and during five years he had possibly taken 3 £IO,OOO out of the business. Nowa-l days pl'act.ically-, every laud agent in Christcllul'eh has his motor car. Those who engaged in farm business made still greater profits. l "“'l.‘he rate of commission islfixed by l the Chamber of C-onllm9.'ree, but often 21 man is willing to pay. double thoscl rates to et‘t'eet_. a good sale. I honest~ ly believe, however. that the boom has burst. Business has slackened ofi? greatly”. Recently two agents have gone out of business. Bigger firms] will, of course. stand it out, while thesmall m-an-will go down or get out.”l