HOUSE RENT.

New Zealand Times, Volume XXXIV, Issue 5554, 16 January 1879, Page 2

HOUSE RENT.

TO THE EDITOR OF THE KEW ZEALAND TIMES. Sir, —In a recent issue of an evening journal there are some comments on what the writer terms the “ exorbitant rent of houses in this city.”

Now, sir, I have built houses in this and other towns in New Zealand, and when the arguments adduced in that article are placed beside the few facts which I shall state, I chink it will be found that those arguments are fallacious indeed. I built a house three years ago worth £450, and have let the said house ever since for £75 a year, I paying all taxes, including water rate. This, then, is “ exorbitant.” The taxes amount to over £7, insurance £5, wear and tear £6, —leaving a profit of £57 a year. The land upon which the house stands is worth £550, thus leaving a profit of less than 6 per cent, being considerably less than any money-lending firm in the city or in the colonies receives as interest on loans. The writer I have alluded to has made a raid at h®use proprietors without counting the coat and with an utter disregard of justice and honesty. Despite ail his argument, it cannot be proved that there would be anything “ exorbitant ” if such a house as I have referred to —viz., one worth £450, standing on land worth £sso—were let for even double the rent that I have quoted, when the ordinary rates of interest are taken into consideration. But I admit that no one could be found to pay such a rent for such a house. £l5O a year would indeed seem “ exorbitant,” and yet it would only be equal to, say, 12 per cent, when rates, insurance, commission, &0., are deducted. I say nothing about the loss sustained by having a bad tenant, who goes away owing sometimes three, and even six months' rent, besides, as is often the case, doing considerable damage, and from whom nothing can be got; or ,the loss by tempest, or the natural decay of a wooden house ; —but will simply ask where will an ordinary wooden house be after thirty years have elapsed from the time of its erection ? These things, however, are but insignificant trifles to writers of a certain class. In conclusion, I would merely point out that it is unwise to rush into print with such absurd and crude ideas as I have animadverted on, and thus publish to the world entire ignorance of the subject treated of.—l am, &c;, A Landlord. Wellington, January 14.