LAND AND RENTAL VALUES

Evening Post, Volume CXXI, Issue 36, 12 February 1936, Page 10

LAND AND RENTAL VALUES

(To the Editor.)

Sir, —A correspondent who writes under the nom de plume of "Equity," has a good deal to say on the question of tenants, landlords, and rents. When it is boiled down there are quite a few rash assertions which are' at variance with common sense or economic facts. It appears that during the depression some of the tenants were actually making money out of the landlords. The tenants (as cited) were cut 20 per cent, in their wages, and turned round and hit the landlord to leg for 50 per cent, on the rent. This is a cruel and bitter thing; '*. surely these tenants could not have voted for a Labour Government. ' , .

However, what I am curious to learn is whether there is any real base of computation of land and rental values in this country. '/Equity's" basic idea of values seems to be the most popular one; a man or woman pays £2000 for a place worth £500, then automatically the poor victim who rents the property has to pay a rent I commensurate with outgoings, and a little bit of fat when around.the corner. "Equity" seems desirous .of everyone owning their own home, saving a small deposit, and buying on long-term' mortgages. I believe this method used to be pretty popular. I would like to cite two cases, and the results. The first is an item from "The Post," 13/3/1935, headed "Bankrupted by Home." The case cited was that of a man and his wife who were unable to meet a demand for £180 on the second mortgage. From the figures cited there was in all £1350 11s Id outstanding; bankrupt had paid £50 oft' one mortgage and £100 on the section which cost £300. ' The man's wages, after paying sick benefit, union fees, superannuation, etc., were £2 11s 3d per. week. The solicitor for the bankrupts said that apart from the house there were no other debts; it was an entirely honourable bankruptcy. The Official Assignee said: "It looks that way to me."

Some eight or nine years ago I was interested in land and the buying and selling of land. I called at a house in one of the suburbs intent on selling a building site. The occupant of the house told me he did not want to build a house, but wanted to dispose of the one he was in, as he was going to Australia. This house was of four rooms and a small kitchen and was built in 1917 as I happened to know, because I helped to build it. It was sold for £495 out of the builder's hands. The details I was supplied with were as follows:—First mortgage £800, at 7 per cent; second mortgage £500, at 9 per cent. A table mortgage of £200, repayable at 10s per week.

This must be one of the £2 10s a week houses reduced to- 255, referred to by "Equity," which made the tenants better off than ever they had been in their lives. I would like to ask "Equity" two questions: Does he know what is the average rental of a fourroomed house in New Zealand? What is the mean or average wage paid to men?—l am, etc.,

R. H. VANEY.