THE COST OF A HOME

Evening Post, Volume CXL, Issue 56, 4 September 1945, Page 9

THE COST OF A HOME

WORKING MAN?S HURDLE

BUYERS BY DESPERATION

During the renewed controversy regarding housing and the hurdles that discourage the average intending home builder emphasis has been put by some writers upon the foundation problem of finding a section, that he can begin to afiord, in or about Wellington. One of Wellington's best experienced builders invited a "Post" reporter to inspect some of a dozen of the 1945 houses he is building in one of the nearer suburban areas, and before starting out he stated frankly that though the sections were, by" today's comparisons, extraordinarily cheap, the houses still were too dear for a working man to buy, except in desperation. "But," he said, "those are the people who have bought the houses completed and who will buy the others just as soon as they can get in—out of desperation—yet I am selling them at prices that are fair by every business practice." As the visit continued, the costs — sections, fe.es and permits, timber, bricks, cement, wallboard and ceilings, builder's hardware, tiling, joinery, glazing, floor sanding, plumbing, down to the nails—were shown the reporter, in summary sheets, invoices, etc., and "any questions answered." The reporter, being fortunate in owning a home on an easy garden section, handy to shopping, schools, entertainments, and all the rest that go to make living pleasant, had a general objection to all the new homes: that for the sections upon which they are built they are too good, but he was asked: "What is the alternative?" The sections were purchased some time ago at auction, at low prices for even, such hill sections, on an occasional bus route, and well away from schools and the shopping facilities which womenfolk must have. So the section costs shown on the sheets of details were low. A typical case was one which was bought for £70, brought up by survey and other fees and expenses to £100; others were'a few pounds up or down. Given some years of weekend toiling the £100 section will, conceivably, be usable. Yet, though the section cost was onethisd, or one-fifth, of what would be asked in other parts of the city, the cost-sheet items still added up coldly, to over £2000, for a well-built, wellcupboarded, well-finished, three-bed-room home fora working man and his family. It was a basement house, of course, on such a section, but the basement height was not extreme and the space was availed of for a large bedroom. The builder was candid about his profit; it was something below the recognised margin. "If I had built this same house in one or other of several other suburbs I could have asked £3000 and it would have been rushed," he said. "I built this and the other houses you have seen at a fair price for a working man and his family, and the result is something that is too much for him to pay, except that he must. He buys by desperation, not by choice." HOUSES AT COST. He declined to draw any moral. There were the details and that was the cost to the man and his wife and family. From that hillside suburb a visit was next paid to Lyall Bay, where the City Council is having eleven homes built for sale to home-seekers. The council's housing scheme is one of facilitating loans upon favourable terms to intending home builders, but it branched out to actual building, by contract, to be able to show some samples of what could be done under its loan scheme. When the first batch of tenders were called the council was unpleasantly surprised, for the prices so far exceeded what had been in mind that none was accepted, and the specifications were called back for revision. Various economies were made and the houses are the plainer for thenr, though they are none the less very good houses of their type. The council found the same difficulties that discourage the private builder, in unexpected delays and shortages of materials, and always the overall hurdle of cost.. It will be some weeks before the first is completed, and very much longer before they are'all occupied. The council's houses also are built upon, low-cost sections Cpast the tram terminus on the way to the Maranui corporation depot), and they will be sold at cost, plus office charges. The selling price is not known yet, but, even after downward revision of the specifications, it will be steep for that type of home; but it will not reach £2000. The builder who took "The Post" reporter to see his contribution to the housing pool said that though normally he has no objection to the term "speculative builder" as applied to himself, he really must disclaim that distinction at the present juncture. "There is no speculation about it," he said. "I build the houses, with the certainty that they will be bought by people who cannot wait." It would be very interesting if later a comparison could be made between the figures for this builder's houses and those for the council's houses at Lyall Bay; floor area for area they will probably work out just about the same. And the same is very, very high for a working man with a family.