Sections Cost More In Christchurch

Press, Volume CIII, Issue 30533, 31 August 1964, Page 12

Sections Cost More In Christchurch

The average section purchaser in Christchurch is paying an extra £9O over his counterpart in the other three main centres because of the imposition of contribution charges on sections, said the president of the CanterburyWestland branch of the Real Estate Institute of New Zealand (Mr R. W. Simes) in his annual report to the branch.

“There has been growing dissatisfaction with the unfair contribution charged in Christchurch, compared with other centres. In collaboration with the Institute of Sur-. veyors the committee has written to the Christchurch City Council and circularised individual councillors with no effect. It would appear this imposition once levied is almost impossible to have removed or reduced,” Mr Simes said.

“Every member of the council personally received a letter setting forth reasonable claims for reduction in fees, but not one councillor replied to the correspondence. Since then our representative (Mr J. Dyer) has brought the matter to the notice of the Progress League which intends to pursue the matter, but it would appear as if we are. flogging a dead horse.” Private Sales Drop

Mr Simes said that the number of subdivisions available for private purchase had fallen off. It was increasingly difficult to purchase a desirable site in a good residential locality. Many sections were being held by builders for their own development and large blocks were being developed by the Government for group building. "All this tends to restrict the choice of the private individual who wishes to build his own particular way on a section of his choice,” Mr Simes said. Ownership Flats

He said that purchasers of home ownership flats should study carefully the formation of companies. Some flat purchasers had shares in companies but no voting power This was a dangerous tenure “A case of this type was brought to my notice recently where the builders of the flats retained 10 per cent of the shares under the articles of the company with sole voting rights. This would make it possible for the holders of

the minority shares to mortgage the property at some future stage without the flat owners being aware of the fact.

“Financing sales of home ownership units has been troublesome. The Government being aware of this is proposing to introduce legislation enabling a company to mortgage .the whole of the land and buildings and lend the money to intending purchasers.” Industrial Land

Mr Simes said there had been some dissatisfaction from overseas concerns arriving in Christchurch with the intention of setting up an in. dustry and finding no suitable land available. Town planning maps showed some areas zoned as industrial but this was no indication of what was available for .purchase.

“Whilst the present unsatisfactory system is in operation Christchurch is going to continue losing industry to the north. The committee offered some time ago to assist the town planning committee in this matter but so far we have not been called upon," Mr Simes said.