Two-value house might ease finance

Press, 2 August 1977, Page 2

Two-value house might ease finance

The Chnstcnurch City' Council could do more toj ease pressures on residents, who- properties are destined for public works, according to a special study released yesterday. Some steps would require' manges in Government stat-1 Utes and regulations. Government valuation; notices should show two values, the housing and pro-j perty committee said yesterday, and there should be mortgage finance help for those who want to buy designated properties on the private market Vai lation notices now show only the market value, which is often considerably lower — because of the designation — than the pnce the council or Ministry of Works and Development will pay when the property is finally required. The council must pay an amount that reflects the property's value compared to a

; similar property not under a i-public works designation. Councillor Maurice Carter • said it was not right that J owners did not have both •I values before them on a | notice. In the past, some > owners hao sold at less than 'I what the? would have received by waiting for a local lauthority purchase. I A chans , f th Valuation ’I of Land Act would be ’ net de to have both figures Jon valuation notice. 'I Since many lenders are reJluctant to provide mortgage .•money for designated pro- ; perties, the study also says t that » special fund cou’d be ' set up to provide mortgage •.finance. <1 That would also require - Government action, since 5 much more money than is f now available would be * needed. Money could be lent 5 to persons buying designated ’ properties which are not rei quired for many years. - The Municipal Corporat11 ions Act allows council’s to

advance money for the purchase of hoiue» and sections, to be r id by instalments, with interest. But a council report said there must be "considerably more finance" available to do that. The council’s loan i..jney for buying land is already fully committed. The first $250,000 loan was sanctioned in 1969, and had been depleted by mid-1975. A further $200,000 was sanctioned last year. From 1969 to 1976, the council had purchase requests for designated properties with a total market value of $440,000. Three to four purchase requests a month are still being received by the housing and property division, and more money could be asked for in next year’s estimates.

The Mayor (Mr Hamish Hay) suggested that more loan m> ney could also be sought, instead of going directly through rates.