BUILDING SUBSIDIES

Poverty Bay Herald, Volume LIX, Issue 17955, 6 December 1932, Page 6

BUILDING SUBSIDIES

PROPERTY, VALUES

j&LI SSiS

Gisftokfrfe liblferDEjßß’ vifefe

“There, is no doubt that there has been a substantial fall in the values of building property in this district, and whether it is due to the fact that subsidies sVKp-Pht-Jiinablß, 0.4 .«,bw work, or to tjjc g>o»iei-al t , fall ip ;iijjatjjml a nni|, Ifijior costs, v it; is none tJje less evident a-jnrd nip mistakable,” remarked a Gisborne real estate agent to-day, distitsstn'g the statement issued,. by the Wanganui timber and hardware .merchants yesterday,, in respect of the subsidy, .policy entered upon by the Unemployment fcoairl. , U H ,i j Xv . vfu i f.. The W^ngajiUji,.;jt^adesnicß, referred to tin? subsidy schcn\te |pr bqfldiiig purposes as a serious eyror',, having as 0,90 of its,effects an lntchsiliqct,. depreciation of values of existing, properties., and-a diseppntipg of equities,pi. house, property in partial it,, These ,view,s :i weft; gem Ciplty endorsed by, 1 Gisborne, business men *ini.oi:yie\v.ed jtq-aay on, tVicy. subject, all being, q fill p 6piujpq.|pat .soine alternative mean?, of stjmplatmg, building; as an aid to employment, should be found by the Cloy,eminent, ’.^h cl ' c wits some difference of .opinion however. .its tq. the principal cause,,for the fall in ,pi;qpqriy. values., . All Jijdd that,the existence., of,the subsidy scheme ,wM coptrihutory, to .the,piespiil,. position of depreciated values; but oh the other hand i{, was pointed out that ivery little new. work had been iinde'riaken under the Ifnenifilqymenfc .Board’s scheme,,,oll lines tbii-tuvfthtld .jpp.iiltqjy. ■ to , affect ■ dii:ed;!y /the • demand One'.hjnd apd, estate agent pointed out that,,.the- subsidy was.,heingbused as an argument by .people who .wished to invest; ..but, \yhn over-estimated the. value of, the. subsidy in,, terms, of. money* wjw.il, Offered .a hquse built,, a.t.,,abput £BSO two years ago, ;.»jid '.representing sound value, pt. .that ; time,] investors of fills, class' were wont, to. declare that thov ecuijd, buy ..cheap ,sections, and .build similar houses nowadays for about £6OO. This might, be true eiipugh, but the subsidy scheme was po.t, responsible, for the 'whole, of, thq Existing condiliqns. in tbe.buildipg kadp, with, contractors anxious to,get work almost at any price, and; apparently willing ’to gamble on their, ability try,cut costs. beyond tli.oiv competitors,, sftid .this agent, were making, it possible, to : -ha,ye- some wonderfully cheap.houses built, to-day. Those iwhp. copld,invest in this direction could, hardly suffer-W> through further depreciation of their property, and doubtless would .benefit . when ■ values hega hto vise, wyth j n,.,yeturn to more normal times in the Dominion. <,Nevert.hgipss, the , depreciation in- existing properties, was imperious.. matter, and probably only tipie i would correct the present difficult position. ■ 1 A. representative ,>vith some experience, of the application. .of the subsidy; pointed, out to a pressipan that on a house,.estimated to cost £BOO. today, the subsidy . ffqiTi the., tlnemploymeht Board would .not morp than, about £55. This was. pot a large proportion of the total value. of the house,, but it, was a consideration to.an investor. Tlie (jyop, for, existing residential properties was due not so much to the v possibility of getting a subsidy -on ,a,pew as. to the general shrinkage in biiildihg costs. . can gpt. a cut price, op almost anything id-day. if yey Hiring out. for it,” 110 remarked,, instancing his, experiences in' regard fo '•different lines of supplies which .handled from time to tiipq., ,lie. agreed .that Values Had shrunk tci the extent pf about So per cent.; but cofild see no early prospect of ,a. solid reppyery. .Only a freer circulation df . nimieyl .and the development of something in the nature of a mild buil.d.ing.Jmqin could force a recovery, he commented. His personal opinion was Ilia |, hujldiiig costs, 'YPuld not take an upward turn fur some time. Though lie regardtij, scheme as being contributory, duly in a minor degree to. the low.erinir bf costs, vto investors. .lie fully agreed wit h,the Wangaiiiji tradesmen’s, organisations in '. condemning it. Tho.hcsHonitt for the trade would lie 3, return ,of cOnlidcnqc, among investors, and while, subsidies and similar schemas.,.disturbed the- • minds - of those with enough capital to build, the cause of employment was suffering, he believed. _