STATE HOUSING FINANCE.

Auckland Star, Volume LXXI, Issue 46, 23 February 1940, Page 6

STATE HOUSING FINANCE.

Regarding State housing caste, let m make another calculation, and in doing 00 I would remind readers that tki Income Tax Department h« reeeatly, and drastically, cut down its allowance for depreciation. Formerly 4 per cent on wooden buildings, it is now 2$ par cent. Taking a £1000 wooden house on a £200 section, rates (Mount Albert) . and insurance, as I hare already ebon," will be £1 17/6 per cent. Depreciation will be £2 10/, maintenance £1 10/ (a, very conservative estimate, especially' for houses framed with sap timber), and supervision and incidental lomm (say) £1, making a total of £6 17/ C per cent, without including a penny piece for "Jay See's" "costless" credit. Of course, depreciation and maintenance will fall on the house (only), and this will slightly reduce my estimate, though it will still be over 6 per cent, which the rentals will not cover. So Car *Jiy See" has. given w only his haU (Wtment that the rentals will pay far all outgoings. If ho really want*, to throw light on the subject, and not cloud -tie issue, lie will now produce bis own (or the Government's) itemised eetiwte of the costs, including what if any, the Treasury charges the Housing Department for the noney. I challenge him to put all the cards on the taAla face up, net down. Beplying to your correspondent, "R.C.5.," I would ask him to read my letter again and try to understand it. My statement that private enterprise will supply the demand was qualified by the -words "given free conditions." Has it had free conditions in New Zealand? Ask house owners and builders! ACCOUNTANT.