BUILDING FINANCE

Evening Post, Issue 19, 23 July 1934, Page 3

BUILDING FINANCE

NEW SOCIETY PROJECTED

Following on' the tremendous developments which, have taken place in Great Britain during the last few years m regard to the building society • movement, an influential body of citizens in Wellington baa decided to" form-a large society, with characteristics which have made the movement so popular in the Old Country Applications will shortly be invited from the public, for permanent, shares and for subscribing shares, the latter' being repayable at the end of approximately seven years. '•'.•■'' . . ' Following the British practice, all shares in the new society will' be subject to withdrawal, an 4it is also.provided m the rules that the deposits accepted by the society will be limited to one-third of the'amount <?f mortgage assets held, -winch will be only half the amount air lowed by the Building Societies Act. This provision is aimed tq make the society s financial position very safe in times of depression.. . .'; Owing to the. stringent financial, con; ditions ruling since,' 1929 ' few dwellings have been .erected in ;the Dominion during the past three years, and it is estimated that at the present time there is a shortage of at least 20,000 homes, and it is felt that there will be ample scope for the society's building plan. The building subsidy ifhick .is just announced' will stintulate house building activities, and the' societyl is b'eng formed." to" proV vide the, organised housing finance which willbe: required'to meet the situation. The 'directors will ba well-known as careful and capable.business men,'and .it is expected "that there will be a ready response Ito this new development in building society. finance. '.'■ ",' ■ ',-■;