HOUSING AND MORTGAGES

Evening Post, Volume CXVIII, Issue 20, 24 July 1934, Page 8

HOUSING AND MORTGAGES

(To the Editor.) • Sir, —I read with interest "B. Fair's" letter and his- criticism of your attitude on the mortgage question, but I do not propose attempting to answer his iemarks on that point, as you are well ablo to defend yourself. I would suggest,' however, to "B. ■ Fair" that lie should "bo fair" in his criticism of those who have invested their all in vacant land, at their opportunity, after seven years of depression, of liquidating Bomo of their losses. In 1928 I invested my all in vacant land for subdivision purposes as an investment on which I carry mortgages for over £3000 at 7 per cent, interest, averaging, say, £210, plus rates and taxes of £42 odd per year. "B. Fair's" investment is on rcnt-produeing property bringing him in gross £400 per year, whereas my income on the vacant land is nil. 'In other words, vay loss, amounts to. £250 per annum, whereas' he admits his'net return is £100 per year. "Well, Sir, "B. Fair" says he is not squealing, but I say he is a squealer in so far that he resents other poor mortgagors frozen land assets suffer-, ing heavy annual losses from getting an opportunity of turning their frozen land assets to account. If "B. Fair" had lost £1750 in interest over a period of seven years ho would have had something to squeal about} whereas, on the other hand, on his own -admission, his net gain was £700. In 1928, the last' year of the boom period, my rates were only £36 per annum, but because there is a slump on ,Jhey Jjave increased to £42 odd per annum,' plus 10 per cent, penalty. Does a slump increase land values, and a boom decrease land: valnes for rating purposes? It would appear so, and especially when vacant land is nonrevenuo producing. "Would it not be a graceful act on the part of our city fathers if they were to forgo the''lo per cent, penalty'on holders of vacant land for late payment of rates, seeing that vacant land has been practically of no commercial value during the past seven years! Perhaps even'"B. Fair" would like to assist a more unfortunate mortgagor by admitting tliat this concession should be granted; or would he like to exchange investments with" me? Let us all get busy on tho new deal, for houses are badly needed; keep smiling, for the sun has not gone out of business yet.—l am, etc, SMILING THROUGH.