HOUSE SHORTAGE

New Zealand Times, Volume L, Issue 11661, 27 October 1923, Page 5

HOUSE SHORTAGE

GOVERNMENT ADVANCES,

BUILDING HAMPERED BY DELAY

Per Press -Association DUNEDIN, October 20. At the I -and Agents’ annual meeting, Mr Ritchie (president), while commending the Government’s legislative attempt to relieve the house shortage, stated that at first it was anticipated that the legislation would apply solely to houses to be erected, but it* had teen made also to apply to the purchase of houses already built. It should be clearly understood that while the department would probably umialty advance in the vicinity of 95 per cent, on new properties, it would not necessarily regard the price paid for older houses as the value of tho property, in which caee the purchaser might have to find more than 5 per cent., anti if further finance was required pnva[o lenders would he loath to accept a second mortgage when the first mortgage was given to the State. Another hinderance was the delay. He was informed that applications had been received in great numbers, and unless the staff of the Advances Department could oope with this extra business it might bo months before a definite answer wno received. Vendors could not be expected to wait an indefinite time, and then find the buyer unable to finance the purchase. Nor could agents bo expected temporarily to fund the finance between the time application was made and when the money was forthcoming.