STATE ADVANCES

New Zealand Herald, Volume LXXII, Issue 22211, 11 September 1935, Page 14

STATE ADVANCES

REVERTED PROPERTIES TOTAL IN TOWNS 3607 CAPITAL INVOLVED £2,836,000 £158,975 COLLECTED IN RENT [BY TIXEGRAPn—SPECIAL REPORTER] WELLINGTON. Tuesday Dctaib are given in the annual report ot tho State Advances Department of the actions of the department in assuming control of town securities as mortgagee in possession. It has confined its activities to tho letting of these reverted securities, holding that the state of tho property markot docs not justify any variation of that policv. The capital represented in tho rentals is £2,830,448, or about £786 per houso. At the end of the financial year there wore 3G07 rental cases, of which all but 73 wore let. Tho rent collected during i;he year was £158,975, which was 94.43 per cent of tho rent payable, and 79.38 per cent of the gross instalments payable during that period in respect of tho relative mortgages. The policy of extending every reasonable opportunity to the mortgagor ha* been continued, the report states, but in 15S eases the mortgagor's position rendered necessary the sale of his security, With regard to securities in urban and suburban areas, the dopartment has continued to make regular and frequent collections from its mortgagors i:n arrcar. During the year 364,701 collections were mado untiethis system, giving a gross return of £'606,520 Summarising the year's accounts, tho superintendent, Mr. G. E. Miller, states that tho total amount advanced from the inception of tho State Advances Office in 1894 to the end of the last financial year was £75.878.207. Payments of half-yearly instalments, together with repayments in full to release securities, had totalled £34,622,507, leaving" n balance outstanding of £41,255.700. Total losses during tho same period amounted to £885,39(3, or £1 3s 4d in every £IOO advanced. Instalments of principal repaid during tho year amounted to £1,671,591. and the interest collected from all sources amounted to £1,991,57b. The payment of interest on loan money? was £1,652,376, and interest amounting to £40,294 was capitalised during tho year. Under the heading of miscellaneous business, it is stated that no money was expended during the year in acquiring land, preparing land for dwellings, or the erection of houses. The amount outstanding in respect of 473 homes under agreements to purchase was £251,906. and the arrears at the close of the year were £12,469.