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CHEAP HOMES, INSURANCE. AND PENSIONS.

PROVISION FOR PRESENT AND FUTURE.

AN ATTRACTIVE SCHEME.

Some publicity has been given to a scheme formulated by Mr. F. Watts, of New Plymouth, which, in the words of the author, is devised for the purpose of settling land for all those requiring in small areas and providing freehold homes, with pensions at an early age in connection with fire, life, accident, and sickness insurance." The matter is one of special interest just now, and the outline of the scheme given below, which has been prepared by Mr. Watts, will no doubt attract a good deal of attention. The weekly payments referred to relate to three classes of houses — namely, five-roomed houses on half-acre sections, six-roomed houses on acre sections, ' and seven-roomed houses on acre and a-half sections. Particulars of the scheme follow :—: — j "The Government of New Zealand at the present time are bhe owners of many valuable properties bought on various occasions for the purpose of cutting into small allotments with a view of getting the working men (under the heading of Homes for Working People) to settle thereon. So far the plan has not proved the success it was anticipated. Without attempting to show why, it is sufficient to say that under no circumstances whatever can a man take up land to build thereop except under the leasehold system, a system repugnant to a large section of the general public. A man enters into possession of a house, say of five rooms and built on a quarter of an acre of land ; he has a rent of about 11s per week, the rates and taxes Is 6d, with fire and life insurance 4s, brings the total up to 16s 6d per week, and no matter how many years he occupies the property he can never get beyond the position of a Crown tenant, and should he die early in life (no matter what the value of his estate might be), leaving a wife and family behind, he is denied the peace and comfort of mind which at such a time should rightly be his, in the knowledge that his family will be required by the Government to give up their home. "A man aged 25 years, desiring to buy a house and section "of land valued at £400, borrows from a fund this amount repayable in 25 years; he tljen insures his life for £300 under an endowment policy maturing in 25 years, and pays a. weekly instalment of 10s, 12s 6d, or 15s, according to the size of his house and land. This includes principal and interest, premium on life, accident, or sickness insurance, and fire insurance on the house and furniture. "Now the position of the man at the end of the 25 years (provided he is alive) is as follows : — The insurance policy with the engagement to purchase the house and land within a term have now matured. The house and land, free from all encumbrances, is the man's own, and he can draw on the insurance fund for a considerable sum, or, by mutual arrangement, apply the capital to the purchase of an annuity of nearly £40 per annum. In the event of the decease of the man during the currency of the term, then (even though only a single weekly payment has been paid) the house and land would there and then become the property of his wife or heir at law. The premium under the insurance policy would cease, and the insurance policy become paid up ; increasing in value from year to year by the addition of the bonuses, it would soor become a valuable asset, but it would not have any commercial value till the full term had expired, thereby securing the further provision against the possibility of future penury. ''In what other way could a man with no capital secure to himself, wife, and children such a happy and prosperous condition of affairs and in so short a time? The payments he has been called on to make being all under one heading, he has known from the commencement what tho maximum amount would be, with a reasonable expectancy of their becoming 1 less from time to time, according to how the Government accounts "pan out. The family have had a roof over their heads with the insurance on the house and furniture, while the man's life has been well insured from death, sickness, or acci- ] dent. "It is further provided that when a tenant ie totally disabled by sickness or accident that the Government shall grant immediate relief either by a rebate of his payments, an advance in cash, or by medical treatment free of charge, it being suggested that as these settlements become sufficiently closely populated an arrangement of this kind would materially add to the numerous benefits of the scheme. Now, take a man living in a house of equal value (say, £400), and paying, rent accordingly, in a term of 25 years on a basis of 8 per cent, he will have paid his landlord over £1000, and his interest in the house and land will be nil. "In all cases of tho employment of labour the employer shall be made acquainted jvitli what his men have to pay towards -this fund, 'and he shall be empowered to deduct these sums of money from the earnings of his employees. All our costly and magnificent homes under charitable ai.i, open to all, but availed of mostly by 'those broken down in health, old age, and sometimes dissipation, separating the man from his wife, will in time undoubtedly cease to exist. From this department we might reasonably look for a "grant of money. "As, also, the Old-age Pension Fund will probably follow suit, as our pensioners will be enjoying the many privileges under this scheme, with this difference, these have been worked for and in no way savour of charity. Further, that whereas the Old-age Pension Act does not encourage thrift, this rewards. . r "The benefits are so many, easily obtained at a very early age in life, and without any capital whatever. A grant of money from the Charitable Aid Department, and also from the Old-age Pension Fund, probably gradually working out of existence both these Departments, and, what is- more likely, special donations from outside sources." In another column, -Messrs. Johnstono and Co. notify the public that thoy liavo purchased tho business of H. H. M'Dougall, news agent and bookseller, Moles-worth-stroet, which will in futuro be carried on as a branch of the business opposite tho Opera Hquso, Matinors-strcot. Mr. M'Dougall also rolurns thanks for the measure of support accorded him, and bespeaks for his successors a continuance) of tho same. < At last Thursday's mooting of the Wellington City Council, it was Ueoiclod to disposo of tho unsold frcohold sections in Ailkon-stroot. Tho Town Clerk has now instructed Messrs. Georgo Thomas and Co. to announco tno salo by public auction of tho sixteen building allotments remaining. Aitken-strcet connects Molesworth and Mulgravo streets, tho Corporation having replaced a rolio of tho past by tho formation of a spacious thoroughfaro, through whioh tho oleotrio trams now run. Tho sections liavo frontages ranging from 27ft to 30ft by depths* of 90ft to 100 ft. Tho salo will take place on Wodnosday, tho 26th July, at tho Chamber of Ooinmorco, Customhouso-quay, and tho auctioneers aro instructed that tho rosorvos are fixed with tho idea of disposing of tho wholo of the sections. Plans may bo obtained on application to Mossrs. Goorgo Thomas and Co., Harris-street.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/EP19050718.2.60

Bibliographic details

Evening Post, Volume LXX, Issue 15, 18 July 1905, Page 6

Word Count
1,261

CHEAP HOMES, INSURANCE. AND PENSIONS. Evening Post, Volume LXX, Issue 15, 18 July 1905, Page 6

CHEAP HOMES, INSURANCE. AND PENSIONS. Evening Post, Volume LXX, Issue 15, 18 July 1905, Page 6

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