REAL ESTATE INSTITUTE

Evening Star, Issue 19000, 23 July 1925, Page 11

REAL ESTATE INSTITUTE

CONFERENCE CONTINUED Tho annual conference of the Real Estate Institute of Now Zealand was continued yesterday,--Mr P. B. Foote (Timarn) presiding. 1 CHAIRMAN’S ADDRESS. I The Chairman, in moving the adop- | tihu of tho annual report and balaucci sheet, said ho wished first of all to ; refer to the passing of a great s'tatcsi man during the year. Much had been i said by much abler speakers than ho was of the valuable services rendered to tho dominion and the Empire by their late Prime Minister, Mr Massey, and to dwell on this matter would be to reiterate wbat bad already boon so ! well said by abler speakers. The insti- ' lute itself bad to mourn the loss of their respected president, Mr W. I*. Harrop. Nows of his death had been | received with groat regret by all their ! members. Mr Itarrop’s record of service with tho Rou-1 Instate Instituts boon ono of groat usefulness, and no ono regretted more than lie did that iho was not with them that day. The I illness and subsequent death of their I njosideut and the illness of theu* secietary had naturally militated against the active prosecution of tho institute s obioets, and ho had been called on to gather up the threads in an endeavor to have matters in train for their mectj 1 BUSINESS GOOD. I It was usual at their annual conference for the president to niako some remarks on general conditions, and the most important to members was that of the state of land agency business throughout the dominion. He found on immiry in the various centres that without exception business in town arid suburban properties was distinct y good, but that there was very little business being done in farm lauds at tho present time. In the South Island, in all towns, there was a distinct imI provemenb in the_ turnover and values ! of business premises, and it was SU K" : gosted that, with the revival of confidence, investors who for some time i past had been devoting their attention to the Stock Exchange were now prepared to look favorably on investment in real estate in the shape of business premises. Tho coming Exhibition in Dunedin had no doubt already bad an | effect on values hero, but tho same ap- ] plied at least to Christchurch and innMORTGAGE MONEY NOT PLENTIFUL.

Mortgage money was still not too ! plentiful, and tho races still remained i high. Apparently, from replies to mi quiries, the rate in tho North Island I lor first-class first mortgages was from : (u per cent, to 7 per and ui tho I South Island 6 per cent, to (ij per cent., ! the lower rale, in each case predoimnatr ing. Second mortgage money was almost unprocurable, except trom vendors anxious to sell, aucl where second mortgage money was available veiy high rates wore being paid. H a P peered to him that there was too great a tendency for purchasers to rely on extended mortgage credit. Purchasers with a small amount of ready cash, instead of being satisiied with.the purchase of property within their means, purchased properties too big tor the amount of capital they had available; and while times were good they xnana"ed to struggle along, but they had not enough maigin ol safety m their linance to withstand even one bad season. It was to be regretted that purchasers did not inoro often recognise this fact and purchase according to their means. Pointed attention had been ( called during the past year to the Gcveinment’s activities in their Lending Department, and lie considered it was time a halt should be called, especially so far as loans made at a lower rate or interest than was generally paid, harm land values had throughout the year, with exceptions in certain localities, shown a falling tendency, and if this tended to establish stable values for farm lands tho fall would not bean unmixed evil. It was undoubted that farm lands during the boom rose beyond productive values, and the fall which was now taking place was only to bo expected. WOOL VALUES.

Wool values, after an almost unpreccdented rise, tell greatly during the . year, and, though there were uidica-1 tions that the fall had beou arrested, j the market was hy no means steady, j though he was optimist enough to believe that there would now be a. slight , rise, though it was doubtful it they: would ever again see the prices realised . at tho first wool sales this year. Too little attention was paid to tho economic law of substitution, nn’d with the increasing production of cotton and other fabric materials, which acted as substitutes to some extent for wool, and in an increasing ratio as the price of wool rose, wool prices should never rise to exorbitant values, notwitnstanding the statement that there was not enough wool produced to supifiy the demand. This same law of substitution had its illustration in the butter market, in that in the Home Countiy, when the price of butter roso too high for tho pockets of some users, the dc--1 mand fell off, and the consumption of 'tho butter substitute, margenno, increased until butter again fell to a price which induced increased consumption. A DISTURBING FEATURE. One disturbing feature in the internal economy of "the dominion was the increase in their imports, especially on those articled which might ho termed luxuries or quasi luxuries. It was of the utmost importance that there should be a wide margin between tho value of their exports and imports, and that the exports should show a considerable excess over onr impel ts to provide for the payment of our annual overseas interest bill. East year, though the balance of trade was on tho right side, it was not more than sufficient to pay this overseas interest, and it was to bo hoped that they had not forgotten the lesson of tho slump and the trials and troubles caused by over-importation. Increased production and general economy in public, local body, and persona'! expenditure should bo tho watchword of every loyal citizen, and if this motto were faithfully observed hy all New Zealand should have nothing to fear for the future. Unfortunately, there were on every hand indications, of too great a desire to increase rather than decrease expenditure, thus causing a shortage of money for mortgages and for the assistance of legitimate j industrial undertakings. INSTITUTE MATTERS.

No now associations bad affiliated during the year, but an endeavor should be made during the year to bring in those districts that were not at present represented, but whoso member’s were gaining a general advantage from the work of the uustitute. It was pleasing to him to see tim activities of affiliated associations in dealing with applications for new licenses, especially in those cases where the applicants were not considered lit and proper persons to hold licenses. It was only by constant vigilance that undesirables could bo excluded item tiro benefits of the Land Agents Act, and affiliated associations wore to bo congratulated on their action in opposing a grant of licenses where they con* siefered the applicant was not a fit and proper person. The motion was seconded by Air Stott, and carried miaiiiuiously, nicinliers making eulogislic references to lire lino address which had been given by Mr Foote,

REMITS. A large number of remits were submitted, the following being the most important —Shortage of Houses. —

The following remits were submitted from Otago:—“That in view of the present shortage of house accommodation the reduced State Advances Funds now available should bo used to assist only those who by reason of _ their financial position cannot obtain finance in the open market, and whoso only hope of securing a home on reasonable terms is by availing themselves of the cheap money and comparatively small margin of security required by the department. “That until the demand tor State Advances loans under £I,OOO has been met no larger applications for loans on residential properties be considered. “That when a property which is subject to a State loan has been sold the buyer shall not, bo allowed to take title subject to the loan unless he can ■satisfy the Superintendent of State Advances that his financial position is as described in clause 1 or this remit; if ho fails to satisfy the superintendent the loan is to be paid off, and the money thus made available for those whose need is greater. This recommendation not to apply to existing advances.

“That if the foregoing three clauses or any of them be approved, the executive take steps to make representations to the Government with a view to having the Act amended in the direction indicated.

“ That should it be suggested that, the terra of the Rent Restriction Act bo continued after next August the hardship inflicted upon property owners having only a small income be brought under the notice of the Government. Note: Under the legislation in question the rent allowed is practically the pre-war rent, while the cost of living and wages have materially increased." The remits were carried unanimously.

THE EXAMINATION QUESTION. Mr Ritchie submitted the report on the question of examination of agents as drawn up by- the sub-committee, consisting of Messrs B. Foote, E. JTaylor, and Ritchie. The report was adopted cn bloc, and tho members of the sub-committee were thanked for the work they had put into it.

The members of the sub-committee were appointed to draw up the syllabus governing the examination. it will not come into operation till next year, and will not bo compulsory. REVISION OF RULES.

The remit from South Canterbury that the rules be revised and submitted to the next annual meeting was adopted, NEXT ANNUAL CONFERENCE.

It was decided to hold the next annual conference at Waikato. DOMINION INSTITUTE.

The following remit was submitted from Hawke’s Bay “ That the Real Estate Institute at its annual meeting affirms the principle of one Dominion Institute (incorporated), with branches in each district having local control.” The remit was defeated. DELEGATES ENTERTAINED

In the evening a social was hold in the Savoy Mr L. Deans Ritchie was in the chair. The Chairman proposed The Real Estate Institute of New Zealand.’ He referred to the good work being done by the institute, and said Auckland had the honor of forming the first Land Agents’ Association. Then came the associations throughout the North Island and the South Island. The delegates to the institute had been meeting for the past ton years, and he was sure the institute had done good work for the public and had also raised the status of the real estate agents. The speaker wont on to refer to the many branches of their work, and said that land agents should have a knowledge of all of them. Ho thought it was a pleasing feature of their deliberations that day that the institute had unanimously agreed to adopt the regulations for the examination of agents, and that many of the agents had stated that they would he the first to sit for the examination. Mr Foote, in responding to the toast, stated that Mr Ritchie was -mainly responsible for the introduction of the svslein of the examination of agents which had been adopted that day. Mr TTeslop proposed the toast of Mr ,T. R. Bartholomew, S.M., and said the land agents in .New Zealand were under a deep deli*' of gratitude to their magistrates in their endeavor to raise the status of the profession. Ho said Unit they were fortunate in having in New Zealand such a high standard in their magistracy. . Mr Bartholomew, replying, said ho must thank Mr Heslop for the remarks ho had made regarding the magistracy. 1 The speaker said that reference had been made to the legislation dealing with land agents. Ho considered that the present Act was bettor than the old one, as it simplified matters. He referred to the necessity of having documents signed, because they could not expect people to have a definite 1 and reliable recollection of what had taken place some time previously. The Land Agents Act was only bringing up to date a very old statute. He went on to state that something more w r as required in granting an applicant an agent’s license than good character and financial stability. Other requisites were necessary, because it by no means followed that though an applicant could fill the legal requirements, I he would prove a competent and qualified agent. The speaker concluded by congratulating the institute on intro-, ducuig the examination system. Mr Clayton proposed the toast of the Dunedin Chamber of Commerce. . Mr A. Ibbotson responded to the toast. Ho said the chamber recognised that the institute was a very important body, and no doubt they would have to come together to discuss matters of mutual interest to themselves and to the public. He thought the Land Agents Act was a good Act, because it eliminated cor- , tain individuals who wko only out to ! make a few pounds in commission. Ho ! also thought the Act had raised the status of land agents. agents : who had not joined the institute should do t so. (“Hear, hear.”) They would then he able to present a more united front, in the event of proceeding for any legislation that might be thought desirable. Ho was quite sure that the institute would go on and prosper. (Applause.) Other toasts' honored wore “ The . Otago Law Society,” proposed by Mr Badger and responded to by Mr W. L. Moore; “The Accountants’ Society,” proposed by Mr W. Paterson and«>responded to by Mr Greenfield; and “The Surveyors’ Institute,” proposed by, Mr Clark (Auckland) and responded to by Air 11. L. Paterson. | A musical programme was submitted i by Messrs Beg. Tapley, S. H. Osborn, iR. Bryant, and J. A. Haggitt. The 1 accompaniments were played by Air H. ; Freed,