WHY PAY RENT?

New Zealand Times, Volume XXX, Issue 6678, 28 November 1908, Page 13

WHY PAY RENT ?

OH-OPERATIVE HOUSE-BUYING EXPLAINED. A public lecture in explanation of tho . principles of the Co-operative House-buying Association was delivex - - ed in tho Town Hall Concert Chamber last evening by Mr Alwin Fischer, of Adelaide, the originator of tho system. The chair was occupied by the Hon. C. M. Luke, M.L.O. One of the chief points which had to be considered, said the lecturer, was that concerning rent, for if that difficulty oould bo dealt with satisfactorily and tho constant drain thus done away with, tho effect would be that even during hard times men would be better off with small wages than they were before with much higher ones. There woro several systems in vogue whereby people were assisted to purchase their own houses, hut he contended that that originated by himself was very much better than any other. How to run a Co-operative House-buying Association was then explained. A member applied for as many shares as he required hundred-pound loans; that was, if he wanted to purchase a £SOO property he took five shares, and so on. For each share he paid a weekly subscription of Is or 9d, according to circumstances, into the fund. Ballots were held at three-monthly intervals for what money was available, the idea being to assist members with the margin of security (or one-third of their requirements), which was needed to enable thorn to arrange for loans from elsewhere. The weekly subscriptions ceased when tho loan was arranged, and whatever had been paid in, plus interest, was placed to the credit of tho loan. The-balance was repaid by weekly instalments of 4s or 3s 6d per share, according te circumstances, this being continued until the loan itself and" the amount received from the association had been paid off. Ho contended that his scheme introduced a principle of equity which removed a serious defect existing in others. Year by year a •member gradually became the owner of his own house—at first slowly, but afterwards increasingly quicker and quicker. Those joining the association became entitled to the full privileges of membership without delay. In South Australia the association had proved most successful. Its membership had grown rapidly when the system had become known, and its operations had resulted in quite a largo number being assisted te purchase tbeir own homes.

Tho lecturer was bombarded with questions for ■ about three-quarters of an hour, and then accorded a vote of thanks for his explanation.