MORTGAGE INTEREST

Otago Daily Times, Issue 24716, 19 September 1941, Page 4

MORTGAGE INTEREST

A REDUCTION ADVOCATED STATE HOUSING SCHEME ESTATE AGENTS’ CRITICISM A suggestion that a reduction in mortgage interest should be made at the present ime was advanced by Mr A. McMillan at the annual meeting of the Otago branch of the Real Estate Institute of New Zealand last night. His views were supported by Mr P. W. Stabb. and both speakers criticised Hie State housing scheme and the Government's action in charging itself only 2.9 per cent, interest while lending money to the public at 4,J per cent.

“There is room for a reduction in mortgage interest." Mr McMillan said. “No Government bonds or industrial shares show as much as 4 per cent, interest. and the Government should give a lead in reducing interest. In the State housing scheme the Government charges itself 2.9 per cent., but lends money to the public for housing purposes at from 4.1 per cent, upwards. The interest rates to-day.” he said “ are from 4J to 5 per cent. The Housing Shortage “ The shortage of houses in Dunedin has never been so acute as it is now. Mr McMillan continued. “ Building costs are the highest they have ever been and the result is that little P r |‘ vate building is being done. The Fair Rents Act has also been a deterrent against building. There has been a definite influx of people to the town from the country,” he said, “and this has also affected the position.” Criticising the selection of tenants for State houses. Mr McMillan said that there were far too many tenants in them with small families, whereas the Government should have given preference to people with big families. The houses, he said, were not for the workers and there were lar too many professional men and people in a similar position occupying them at present. “Fallen Down On Its Job”

“The Government originally intended to build houses valued at from £6OO to £900.” Mr P. W. Stabb said " but it had not gone far when it found the cost being increased by 50 to 100 per cent., and the rents had to go up far above what the worker could pay. The Government has fallen down on its job, for not only has it failed to give homes to the working class and keep up with the demand for houses, but it has killed private enterprise. “What is going to happen when the men come back from the war?” Mr Stabb asked. “It will be found at the termination of the war that most of the men will want to make homes for themselves, and there will be no houses for them. And it will be because the Government has practically created a monopoly of building,” Mr Stabb added. Mr Stabb supported Mr McMillan's suggestion that mortgage interest should be reduced at the present time, and contended that private enterprise should be given encouragement.