REDUCTION OF RENTS.
Sir _As "Simple Simon" appears to be a reasonably-minded tenant I will give him a few figures to ponder over and then see whether ho still thinks rents arc too high. It costs nearly £2OO per room to build a sound house with the necess.ny conveniences demanded nowadays, such as sewerage, hot and cold water, electiic li.rht, bath, copper, wash-house, etc., i.e., say, £9OO, for a 5-roomed house, section, £200; fencing, living out paths, etc., £SO; total, £llsO. For such a house 30s per week' is now about the rent, i.e., £73 per annum on the receipts side. Expenditure as followsßates, £ls; depreciation, £2O; painting, £5; repairs, £6; loss of rent through change of tenants, £5: rent collection, £2; total, £53; leaving a profit of £25 per annum, and this is provided there are no bad debts. Now suppose "Simple Simon" had invested in a house like this and had a mortgage of £9OO on it-at 7 per cent., i.e., £63 per annum, he would be losing £23 per annum and getting no interest on his deposit of £250. Would he then, being a landlord, think rents were too high ? Simon Puke.
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https://paperspast.natlib.govt.nz/newspapers/NZH19320311.2.172.2
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New Zealand Herald, Volume LXIX, Issue 21129, 11 March 1932, Page 12
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195REDUCTION OF RENTS. New Zealand Herald, Volume LXIX, Issue 21129, 11 March 1932, Page 12
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