Money there — for those who save

Press, 26 August 1977, Page 4

Money there — for those who save

By

MAREE MAHONEY

Money for housing is available in Christchurch — for those prepared to save about $2OOO with the same institution over a two-year period. The general manager of the Canterbury Savings Bank (Mr F. Dickson) predicted that his bank would lend at least SIBM this year' for mortgage finance in the Canterbury area — an increase of S4M on last year’s cum. Mr Dickson said there was still a high demand for mortgage finance, but the community should guard against minority pressure groups who were trying to create an impression that many people were living in tents. Mr Dickson said young people buying a house needed to have real equity, and there was too much emphasis on building new houses rather than purchasing a second-hand home. “By forcing them into this area, we are getting them into too much debt. They' can probably cope if they have two incomes, but if for some reason they are reduced to one, they will have problems.” He said his bank often lent on properties up to 70 years old, as long as they were in reasonable condition. Mr Dickson said that the Government should reduce the ratio of savings banks’ holdings in Government stock from 43 per cent to 30 per cent. “That would be a realistic figure; it should be brought in gradually. If it is cone all at once, it would be inflationary,” Mr Dickson said. “At present, trading, banks are investing S4OOM: | building societies contribute. a mere S2OM.” The general manager of the Canterbury Building Society (Mr M. E. Honeybone) said his comnany was still deluged with applications for mortgage finance. The money released by the Government last Monday was "a drop in the bucket.” “However, we sympathise with the Government, as it coes not want to build a lot i f houses: and if it were not for the builders, the houses would not really be needed," Mr Honevbone said. He was critical of the Government's decision to increase the building societies’ r*’i-i of Government storks from 5 per cent to 15 per cent. His view was shared by the district manager of lite New Permanent,

.Building Society (Mr V. T. Maffey) who said that the Government was trying to develop a free market situation. “The Government should encourage societies which . tend long-term table mortgage finance. It will not help the situation by making us invest in more Government stocks,” Mr Maffey said. “We are lending a lot more money now, but; inflation means that we are’

not really servicing a lot : more people,” he said. "But i the home-ownership savings scheme introduced by the Labour Government is a wonderful opportunity for young married couples with !two incomes. The trouble is ' I that most young people expect their new house straight away. j “It is hard work to buy a house, but it is not really any harder than it was 30 'years ago,” Mr Maffey said.