REAL ESTATE INSTITUTE

Otago Daily Times, Issue 23320, 12 October 1937, Page 5

REAL ESTATE INSTITUTE

Annual meeting The seventh annual meeting of members of the Real Estate Institute of New Zealand (Otago branch) was held in the office of the secretary (Mr R. Hanning) yesterday afternoon. The president (Mr Percy Stabb) occupied the chair. Moving the adoption of the annual report and balance sheet, the chairman said he would like to thank members of the executive and their secretary for their valuable assistance during his term of office. EFFECT OF COSTS OF BUILDING The year had had its problems, yet he thought he was safe in saying that there had been considerably more activity in real estate than for some years past. In view of the very heavily increased cost of building there had been very little speculative or investment building going on, and consequently a great shortage of homes existed. Houses to rent were almost unprocurable and homeseekers were forced to buy. hence the increased demand for residential property. On the other hand there had been a marked slackening off in the demand for building 'allotments. The corporation and Government building schemes were now well under way. and some of the houses were occupied. A good deal of criticism of the costs of these homes had been made, and it seemed to him that those whom the scheme was intended to benefit would find it "cry difficult to keep up their engagements. He realised that the Government was earnest in its endeavour to give better housing conditions to the people, and to some extent at least these houses were lessening the acute shortage In his opinion, however, it would be many years before this shortage could be overcome unless the Government gave more encouragement to private enterprise to build for investment purposes. MONEY PLENTIFUL The chairman said that there was a plentiful supply of money available for- first mortgages at the current rate of interest, viz;. 4J per cent., but the difficulty, was to obtain money on second mortgage, so as to bridge the gap between the first mortgage and the amount the p_urchaser had to buy his home with. If the Government would assist purchasers who desired to buy or build properties in theii own choice of position and to their own particular requirements with limited deposits, he believed it would, if not solve the problem, at least make it easier to obtain homes. CITY IMPROVEMENTS While there had been limited sales of business premises during the year it was pleasing to note that considerable sums of money had been spent on renovating and alterations, and a much brighter city had been the result. Two hotels in the main street had been renovated, added to, and improved at a reported cost of over £70,000. He understood that there was also an extensive building programme contemplated in connection with another of their leading hotels. Visitors and tourists to their city could now be assured of accommodation equal to the best in the Dominion. REHABILITATION ACT They would note from the annual report that the commission set up in Dunedin to adjudicate on cases brought before it under the Mortgagors and Lessees Rehabilitation Act expected to finish its work by the middle of November. This was in marked contrast to the experiI ence of many of the other commisI sions, some of whom had only heard | one-third of- the cases set down for adjudication. It was indeed pleasing to note that the mortgagees and mortgagors in their district had required the

assistance of the commission ■in so few cases, and it said much for the conciliatory spirit existing on both sides. He was of the opinion that this Act had done much to clarify the position as to mortgages, and provided no further legislation was enacted so as to interfere with the “ rights of contract ” it should prove beneficial.

THE FINANCIAL BAROMETER The unsettled conditions of world affairs and the serious European situation, to which had now to be added the conflict going on between Japan and China, made the future full of doubt. It was true that there was a certain amount of prosperity in the Dominion at the present time, and while the Government was able to go on spending money ad lib this would continue, but if there should be a serious fall in the price of their exports depression might be nearer than their legislators realised. There was no doubt that the financial barometer was very jumpy, and during the past few months they had seen a very considerable drop in stocks and shares. This brought him to his point—that the very best investment was real estate. It was not subject to the same fluctuations as other investments, and if judicially bought could always command a reasonable return and a bigger margin of safety than any other form of investment. The aim of the members of their institute should be to see that investors and home buyers seeking their advice should be given their very best services and professional knowledge. If they did that it would tend to give the public more confidence in real estate and ultimately be to their own individual benefit. Mr Stabb said he felt certain that the institute had to a large extent fulfilled the wishes of those who had created it. It had helped to give estate agents a better standing in the community by instituting examinations, thereby helping to make members more qualified to give professional service; brought down tariffs, which were almost uniform; created better understanding and friendly relationships between member,s; had at all times been willing to arbitrate on any misunderstanding between its members and the public; scrutinised applications for land agents’ licences: and, while not at any time taking part in party politics, had always been watchful of any legislation that might have unfairly affected their profession.— (Applause.) Mr T. F. Basire seconded the motion.

Mr L. J. Ireland referred to the value of the institute in safeguarding the interests of those desiring to purchase property. He thought that their chairman had covered the ground regarding the Government building scheme very ably They had however, the anomalous position of rapidly increasing costs of housing while on the other hand they had legislation which provided fo- the lowering of other liabilities There seemed to be some inconsist-' ency here, though they realised that the Government was trying to do its best. He congratulated Mr Magnut Johnson on his appointment to the local Adjustment Commission, and said that he had done excellent work on the commission. Mr L. D. Ritchie referred to the excellent work of the institute, and said that the introduction of examinations for members was a valuable move. If the Real Estate Institute of New Zealand had done nothing else but introduce these examinations it had justified its existence.

The motion was carried. ANNUAL CONFERENCE

It was stated that the annual conference of the Real Estate Institute of New Zealand would be held at Wellington on October 21 and 22, and it was decided to hold a special meeting of the executive to consider the remits to be presented at the conference. Mr Stabb will represent the Otago branch at the conferenco.

ELECTION *OF, OFFICERS The election of officers resulted as follows:—President, Mr L. J. Ireland; vice-presidents, Messrs T. F. Basire and H. L. Young; committee (five vacancies) —Messrs J. A. Macdonald, T. Irvine, R. S. M'Kenzie, Douglas Spedding, and Magnus Johnson. The chairman referred to the fact that Mr L. D. Ritchie was unable to accept nomination as a member of the committee. He said that Mr Ritchie had been one of the stalwarts of the institute since its inception and he was sure they would regret that they were now losing his very valuable services on the committee, though they realised that he would always be ready and willing to assist them whenever possible.— (Applause.) A motion expressing appreciation of the work of the retiring president, Mr Stabb, was, on the motion of Mr Johnson, carried by acclamation. A motion expressing appreciation of Mr Hanning’s services was also carried.

Mr C. R. Smith was reappointed auditor.