REAL ESTATE INSTITUTE

Otago Daily Times, Issue 23592, 31 August 1938, Page 16

REAL ESTATE INSTITUTE

OTAGO BRANCH REPORT The eighth annual report of the Otago branch of the Real Estate Institute of New Zealand, which will be presented at the annual meeting of members of the branch in the Vedic Cafe on September 5, is as follows: During the year nine new members were enrolled, although seven of these became operative only as from the beginning of the present, financial year. This leaves very, few agents as nonmembers, and it was hoped that within the near future the principle of unitea membership will be. appreciated by mem, for there was no doubt that the immense amount of work which had been done by the Real Estate Institute for many years was deserving of recognition and, support by, every holder of a land agent's licence. Further progress had been made by the parent .body in the matter of a universal tariff as applicable to freeholds in sca,le - clause 1, everything else being universal, and it was hoped that this much-to-be-desired 'provision will materialise before long. Of course, it had to-be realised that conditions at this end of the Dominion were-differ-ent from 'those- ruling in the North Island,.; '■■ FAIR RENTS ACT The Fair, Rents Act was amended during'tfhe year by a provision in the Finance Act'making it, obligatory upon owners-of properties • which ".were subject to-the Fair Rents'Act, that before they could re-enter, in to. occupation for their own' persohal use of give possession to-a< : purchaser, they. must.secure for the' tenant suitable alternative•; ac-, commodation. This provision under the Finance Act was brought down and passed almost without warning.by the Government... The executive held a* l urgent meeting and expressed us considered opinion, to. the Minister in charge to the effect that this legislation would not have-a''beneficial, effect, but the Minister replied that all such objections had been considered and had been waived in favour, of the urgency of some tenants in very- necessitous circumstances, ■

The'Fair Rents 'Act, which was now rather anomalously named, had-ren-dered ' the sale of , tenanted dwellings almost' hopeless. All were agreed .at this end of the Dominion that the 'Act had done more' harm, than .good.-WO, one would build,dwellings for investment, and only .as a latt .resort' would owners let their homes, preferring to sell at a sacrifice if possible. Many unfortunate owners remained so in name only with the burden of upkeep, liability for' first' and often second mortgage, depression period rent, and under the liability of having to employ expensive litigation measures to prove their right to their own property; whereas the tenant, who may be quite a high-salaried individual, without any liability for mortgages, interest, or upkeep, who frequently aims at no particular standard of care (was, in, fact, not required to do so), and could

plead hardship or standard rent ittder the Act, which did not recognise mWte ingly rising costs, enjoyed'.the. right. of engaging his legal advice and aSSWt : ance free from the .Government Department of Labour.> v , '•" ■■ > housings schemes In the matter of housing, ernment was pushing on apace, but « was extraordinary that, in view, oi! the general urgent need of homes, the Pine Hill scheme, which was commenced so long ago, was not yet finished. Bund-" ing under the Government scheme had. been confined to outlying suburban localities, and it was doubtful whether the working or smaller salaried man for whom it was intended these houses should be provided would .find them an economical proposition by the time he and his family took the coirt or transportation. into consideration, *nd the fact that those of the household who were going to work must either take a cold lunch or purchase lunch. Of course, in its endeavour to keep down capital cost and carry out group building schemes, it was necessary to go a good way out. The local corporation housing scheme had much more to commend ;iti:'tri' that, individuality in the purchaser .-had' been'encouraged within limits aS'reV' gards architectural design and locality. The average liability was in the vicinity of £1250, which probably marked the highest average, level.eif. mortgage indebtedness yet undertaken by the working man in buying a hoffifr" It seemed unfortunate that;. fome expansion and extension,- of IState Advances finance could . not A have been' provided or derived,; ''w,h.fch;» would have • encouragedv investors, building . societies; and' other finance institutions to- ) ehtfr into fhis form of investment. ~ /*'■-.- ' QUARTERLY JOURNAL" This year had seen. the-.first :lssiie of the new quarterly journaldf :the institute. It was felt that the estab'i lishment of this issue was a step'in the right direction.: Its contributorii- tii» eluded members throughout New- Zea* land, and there Was no doubt-tht(t, in" time, it should develop Into a valuable adjunct to the library of every real estate agent '"/■.''■■■ \-\"\ ■'■'■■;