PERMANENT BUILDING SOCIETY OF NELSON

Nelson Evening Mail, Volume LXVI, 4 September 1934, Page 8

PERMANENT BUILDING SOCIETY OF NELSON

ALTERATION IN SYSTEM OF SHARES INCENTIVE TO SELF-HOME OWNERSHIP Recent alterations to the rules of the Permanent Building Society made provision for the directors-to authorise the issue of another class of share in addition to the system of share, at present in force, which has remained unaltered since the inception nearly seventy-three years ago. The original, or 3s share, has served its purpose during all these year's, and the Board of Directors consider that the time is now opportune to bring into eifect a new class of share, to enable the lower wage earning class of the community to take advantage of the facilities offered by .the society for the purpose of members providing homes for their families. The new class of share, for the present. will be available only jn connection with loans required for the erection of new dwelling houses,, thereby encouraging the erection of new homes' ahd incidentally providing Avork for the building and 'allied trades, as well, as helping the unemployment question. 'V® • The new shares will be known as “B” shares, the monthly subscription being' Is 6d as against 3s under the former class of share. Under the old systeirfrof shares, it took nine years for the shorts to mature at £2O 7s. provided profits were allotted each half year at the rate of 5 per cent, per annum, and under .the new class it is anticipated that provided the same rate of profit is maintained throughout, the shares will mature at £2O in fifteen years. ! ' Vv

As the monthly ’ subscription on the new shares is exactly half of that on the old shares, and the period greatly ex-, tended, it means that borrowers will be able to finance their home at a comparatively easy monthly payment, as the payment- on a loan of £SOO would be only £2 19s 2d per inentli. or less than £l' per week. In deciding to issue the new shares, the Board of Directors have departed somewhat from - the existing: conditions,ahd to encourage the building of new homes, the shares will be restricted to the erection of new homes as already ftated. and os the society has maintained the rate of profit on shares at 5 per cent, (half yearly) since 1901, there is every reason to believe that the same rate will be continued in future. Should, however, the rate of profit be increased or decreased, the maturity for each class of share will he decreased or in.' creased accordingly. The society is to he congratulated on the progressive step it has taken in the interests of the members, and it is anticipated that the valuable aid to self--bwnevship that- it has given in the past 73 years, will he greatly increased in the near future. The society’s advertisement in another part of “The Mail” sets out the monthly payment regarding loans, etc

The society also has in connection with tlie loans what is known as the Combined Plan Scheme, whereby borrowers may on the payment of a comparatively small single premium which the society ad-, Vances if necessary, make provision whereby in the event of the death of the mortgagor during the mortgaged term, the Government Life Department would pay to the society the balance owing under the mortgage.