THE LAND SALES ACT

Otago Daily Times, Issue 26607, 1 November 1947, Page 9

THE LAND SALES ACT

Sir.—The Land Sales Act has certain pernicious effects in the economic life of the country to which it is advisable to draw the public’s attention. A man may complete his purchase of a section and subsequently erect a house thereon, at whatever cost he pleases and free from the court’s' control, provided the seller of the section is not the builder. By contrast an owner-builder may not sell a section and contract to build a house for the purchaser except under the court’s control as to price of land and house. Result:—ln the first case the builder can make any profit he can obtain on the market: in the second case h e is ver Y lucky if hs nets 10 per cent, on cost. Thus it does not pay a builder to buy land and build houses for sale. Profit is denied him, and new house construction is further retarded. An owner of land builds a new house with the intention of selling. His builder quotes the building price. He sells section and house, but the court values the house at less than cost and he is expected to make a loss and like it. Result. No new houses being built by the investor for sale purposes. Again housing construction is retarded. An investor buys an old house, reconditions it thoroughly by contract with a reliable builder. The Crown comes Slong and says the value of the additions are less than the cost. Result: The investor loses capital. No- old or dilapidated houses are being conditioned as freely and expeditiously as when private enterprise was unrestricted. An owner, by change of employment or ill-health, is forced to sell. Result: >He receives only 1942 values. The t>urchaser will, in due course, when the Act is repealed, receive, without effort or merit on his part, the disparity or increase between 1942 value and the value when he sells unrestrictedly. An owner builds a new bungalow m 1942 and there is a vacant section next door. In 1947 the owner of the vacant section builds an identical house at £IOOO increase of cost. First owner sells and is cut down to 1942 values. Second owner sells and receives 1947 cost in fullAdoring wife says to fond “ There’s a sunny section, darling: go and buy it for wifey-pifey.” Husband dutifully responds, but comes home without the bacon, and complains that it is f 200 too dear. Wife says: “Go and buy t, or else ,” remarking that she has only one life to live, wants a home, what s £2OO, and so on. Husband buys, Land Sales Court says no-can-do. But Government says to husband and irate wile. your £2OO at the races, give it away, burn it, save it, buy booze, oi anything you fancy, hut if you want a sunny corner for your home, then tne answer it ‘ " No.”-I am, etc ’ observcl .