LOANS FOR HOUSES

Ashburton Guardian, Volume 70, Issue 212, 23 June 1950, Page 4

LOANS FOR HOUSES

PRESENT LIMITS TO REMAIN GOVERNMENT POLICY (P.A.): WELLINGTON, June 22. “As the present market indicates that it Is still in the process of steadying, the Government doSs not in the meantime contemplate increasing the present loan limits for the purchase of existing dwellings,” said the Minister of Rehabilitation (Mr T. L. Macdonald). to the N.Z. Returned Services’ Association conference today. ’

“Any such increase at this stage, while benefiting a few former servicemen able .to purchase houses, would react unfavourably on the majority, as a long-term policy would tend to stabilise prices at a higher level,” said the Minister. ■ “I feel the attitude being adopted by the Rehabilitation Board is the correct one for the present.

“ Undoubtedly, the main need is for more houses to be built, and to this end every encouragement should be given former servicemen to take advantage of the substantial loan facilities offering for the erection of new houses, if it is possible for them to continue in their present housing circumstances for, say, the next 12 months, during which time their houses are under construction.” Discussing the returned servicemen’s 50 per cent, preferential quota of State house tenancies, the Minister said .that the association could be assured that, in general, this preference would continue, but where in individual instances it was evident that preference had accomplished its purpose, consideration would be given to amalgamation of civilian and former servicemen applications. The Minister said that in some of the smaller districts it had become inpreasingly obvious that serious anomalies existed in continuing the preference because of the preponderance of civilian applicants with circumstances of some urgency. As a, result it had been decided to set up combined committees to allocate all State rental tenancies in particular districts. In agreeing to the setting up of such committees, the Minister said, he had assured himself that in all cases former servicemen’s interests were adequately safeguarded. With the recent increase in loan limits .to £2OOO for .the erection of new houses, continued the Minister, the Rehabilitation Board had adjusted the loan term payments accordingly, to ensure that the annual repayments on the increased scale were within the means of the average former serviceman. On a £2OOO loan, less £2OO suspensory, and £IOO supplementary in-terest-free loan, for a term of 35 years, the annual repayments would be £7B 15s Bd. On a similar amount for a 30-year term the annual repayments would be £B6 Os lOd. On both terms the monthly repayments were less than 37s 6d weekly.

The Minister also advised the association that the administrative arrangements concerning the sale of State rental houses were still being considered, and that the association would be advised of the position as soon as possible.