HOUSING AND FINANCE.

Auckland Star, Volume LVII, Issue 135, 9 June 1926, Page 11

HOUSING AND FINANCE.

THE POSITION EASING.

STATE ADVANCES OPERATIONS

REPAYMENTS INCREASING

(By Telegraph.—Special to - Star.")

WELLINGTON", this day

Over eight millions sterling in loans were authorised last year by the State Advances Department, a record in its operations. Of this sum, advances to settlers account for £5,409,310. to workers £2.763.644, and to local bodies £157,(520.

Housing loans also made a record, and it is believed that the peak of this demand has now passed. The authorisations for dwellings amounted to £2,460,----214, compared with £950,100 in the previous year.

It is understood that the arrears of housing applications are being caught up with, that the pressure on the State Advances Office of an urgent class of application ia not as great as it was. and that the loan authorisations and 'in due course) the advances will be reduced.

When the Minister of Finance stated the purposes of the new six million London loan, he did not include housing. As a matter of fact, the Government has been borrowing money locally at 5 J per cent for housing, and some Australian money has also founfl its way into New Zealand Government 5J per cent debentures.

Borrowing for housing at anything over 5 per cent is not very good business, but the State Advances Department is now getting nearer and nearer to the position of self finance. Its annual repayments are growing as the house famine demand fall 3 away from its -peak, and as the repayment process gathers momentum the State Advances Office hopes to avoid raising fresh capital at over 5 per cent. Following are amounts repaid to the State Advances Office by borrowers: —In 1925-26. repaid by settlers. £1,010,354: repaid by workers, £514.773: repaid by local authorities, £103,660: total. £1.628.792. These figures are striking evidence of the growing independence of loan capital.

HOUSING IN AUCKLAND

A WELLINGTON VISITOR'S STATEMENT. fßy Tele*rapS.—Special to "SUr.'i WELLINGTON, this day. With respect to the housing question a recent visitor to Auckland states that he saw evidence there that the house famine peak has been passed. He saw very many empty houses, he says over a hundred. They are empty because the owners cannot secure their own terms from either tenant or purchaser. The reason that the owners cannot secure their own terms is that the house famine is not so intpnse. Many owners desiring to sell are prepared to accept mortgages, but will not give the long term mortgage that the State Advances Office gives, and thus the terms offered by the owners become too high for the purchaser, who is not prepared to liquidate the high price asked for a house within an ordinary mortgage period of seven or ten years.