Rental Or Freehold?

Dominion, Volume 36, Issue 308, 23 September 1943, Page 6

Rental Or Freehold?

Sir, —1 would like to take up A. Mansford’s challenge in today’s “Dominion." Suppose at 25 years of age 1 bought a house mid section for £l4OO and borrowed the amount on a -40-year table mortgage at 4 1-8 per cent. The yearly instalments would amount to £7l/15/-. Average rates, insurance and repairs would amount to £25 per annum. At the end of 40 years I would have paid at least £3870. 1 would then own an old place but subject to heavy maintenance. Suppose, on the other hand, 1 bad rented a place and paid during the term, as Mr. Mausford suggests. £2600 in rent. I would, 1 suggest, have saved £1270, and, being thrifty, this amount was iii the bank. I would then have £1270 plus accumulated interest thereon, to bdy (if I then desired) a new home. A modern home, no borer, no maintenance. Now 1 challenge Mr. Aliuisfoid or any Nationalist to disprove my case. For you believe in thrift and interest, the foundation of my argument.—l am, etc., LABOUR IN VAIN. Palmerston North, September 21.