Difficulties in buying homes

Press, Volume CXV, Issue 33858, 2 June 1975, Page 12

Difficulties in buying homes

High interest rates, combined with the amount of mortgage money required, made buying a home for the average buyer in the medium price bracket, very difficult, the president of the Canterbury-Westland branch of the Real Estate Institute (Mr P. T. Battersby) said in his annual report.

Since September, 1974, .property sales had improved. Although the market had ! steadied, a large number of , properties were for sale in | the $20,000 to $30,000 .bracket, he said. There was still a reason- f able demand for the .higher priced properties although the prices had fallen by about 10 per cent. Fewer ownership flats bad been built since Christmas and inquiries for them had fallen. But flat units within Housing Corporation price .limits remained in good demand. Mr Battersby said he believed that some ownership flats were a disgrace to those building them—just plain I shoddily built, he said. “By this I do not refer to flats built by competent builders.” The sale of sections was I governed by the terms offer- ) ing. Sections $16,000 and over were difficult to sell. Mr Battersby said his re-, port last year had indicated; a sharp rise in the value of

industrial land, basically brought about by the rapid growth in industrial development requirements. This year had seen a downturn in demand and consequent steadying of prices asked for j the land. It was true that there were a number of cases ■ where the price asked for land was less than that of last year, he said. In some respects, land had . been held by developers who had placed the land back on the market as their need for liquidity demanded. Because of increased costs, particularly of materials and labour, and the percentage required by the investors, project prices were rising. This factor was reflected in rentals m some cases being more than the tenant had budgeted for. Sites in the central area, inside the belts, were not ; readily available. The purchaser for the larger site was finding it necessary to make .his selection from the areas available, often up to four miles or more from the city.