PURCHASE OF HOUSES AND FARMS

Dominion, Volume 37, Issue 120, 16 February 1944, Page 6

PURCHASE OF HOUSES AND FARMS

Supplementary Loans For Ex-Servicemen INTEREST-FREE GRANTS A decision of the Government to grant interest-free supplementary lehabilitatiou loans .to ex-servicemen wishing to buy or build houses or to purchase farm properties was announced yesterday by the Minister of Rehabilitation, Major Skinner. This, he said, had been found necessary because, though the State Advances Corporation already had authority to lend to exservicemen up to 100 per cent, of normal lending values, this was not always sufficient to enable an ex-service-man to finalize a deal, as. it was frequently found that sale prices fixed by the land sales committees, owing to the different bases of calculation, were in excess of these values. It had therefore been decided that subject to certain conditions and particularly the condition that the ex-serviceman first contributed'as much as possible from his caslr resources, the Rehabilitation Board would, through the State Advances Corporation, grant a supplementary loan to cover the difference between the normal lending limit c f the Corporation and the price approved by the land sales committee in the case of sales, or the actual cost in the case c-f new houses. It was recognized that this additional loan on its own would not materially assist the position as the amount of mortgage payments would in many , cases be beyond the means of men receiving normal wages. It had therefore been decided that though the additional loan would be secured by mortgage no interest would be charged and no repayment of principal would be required except in the event of the sale or transfer of the’ property. Limit of Advances.

The total loan available from the State under both headings -would be confined to the present limits approved by the Government, namely £l5OO in the case of houses, and £6250 in the case of farms (including advances on stock). Certain administrative details still required to be worked out, but as soon as these were finalized the scheme would be put into operation. “ The general question of interest rates on rehabilitation loans had also been reviewed, and the following rates would now be charged : — Farm Loans. —First year, 2 per cent.; second, third and fourth years, 3 per cent., and thereafter full rate. House Loans. —First year. 2 per cent.; second year, 3 per cent., and thereafter full rate of 4 1-8 per cent. It was considered that with these concessions ex-servicemen, in the absence of abnormal circumstances, should now be in a position to re-establish themselves satisfactorily in the civil life of the community. In regard to the actual charging of interest, it had been decided that subject to the. keeping of the covenants. of the mortgage th - actual collection of interest would in future be at the reduced rate as already indicated. Any amounts already collected in excess of the reduced rates as now approved and held for credit of the fnortgagors would be applied against future interest charges. “These measures,” said the Minister, “should stimulate the erection of new houses and materially assist ex-service-men who wish to erect or purchase houses or to buy farm properties. “One of the most difficult problems we have had to face in connexion with rehabilitation, is the provision of homes for ex-servicemen, and we are anxious that as many houses should be built as the supply of labour and materials will permit. it has accordingly been decided that the erection of houses for ex-servicemen in the cities and in rural areas will be given a priority equal to that accorded to the erection of State rental houses.” BACK TO CIVIL LIFE Rehabilitation Problems RETURN TO INDUSTRY Phases of the rehabilitation problem were discussed by the Minister of Re habilitation, Major Skinner, in an address yesterday to the Wellington branch of the New Zealand Institute of Valuers. AU departments of State, he said, were being utilized by the rehabilitation organization to get ex-servicemen and ex-servicewomen settled into jobs. Administrative difficulties which had been encountered ?*• first were becoming smaller, and in a short while would disappear. , , ' Major Skinner said that almost every fdrm of rehabilitation envisaged financial assistance of some kind. When he was first asked to undertake. Ministerial responsibility for rehabilitation he y as in Scotland, and before his return to New Zealand he contacted all authorities on the subject he could in Great Britain, the United States of America, Canada and Australia to ascertain what was being done or contemplated in,the way of the rehabilitation of men and women discharged from the armed forces. He found that very little had been done in Great Britain, and that though a report had been prepared there was no organization in working order. Up to the time of his departure from Britain in July of last year not one serviceman had been rehabilitated in the Old Country apart from the payment .of pensions. He found also that little had been done in the United States and that no plans for rehabilitation had been formulated. In Canada the 'authorities had gone, quite a long way in the rehabilitation of service personnel, and an organization had been established much the same as the one in New Zealand. The only really helpful suggestions received from overseas had come from Canada. Australia had set up several committees, but nothing practical had been done. . An important part of rehabilitation was the reconstruction of industry. Just on 30,000 men had already been discharged from the forces and 22.000 had gone back to secondary industry. The majority of men would be absorbed in industry. After the last war only 10 per cent, of the returned men wanted to go on the land, and he did not anticipate there would 'be any more this time. Related industries were grouping together and getting out their own plans for the change-back from a war-time to a peace-time footing. “The Government is prepared to do everything it can within the limits of the resources of the Dominion for our ex-servicemen and ex-servicewomen,” said Major Skinner. “There is no lengtl to which it will not go to assist them. It will go as far as the national resources will permit.” The president of the institute, Mr. J. Jenkins, presided. A number of visitors were present