MORTGAGE MARKET

Poverty Bay Herald, Volume LX, Issue 18089, 16 May 1933, Page 9

MORTGAGE MARKET

IXCOTEBT IN AUSTRALIA

The mortgage market in Australia is avowing .signs of recovery from the •hcicks „ administered by the Legislature last year,' states the Melbourne Argus. Many ' people are still hesitating to lend on mortgage because of the fear thai at some - future date Parliament will interfere with contracts again. The widespread existence of this feeling in the past has fdreed considerable sums into gilt-edged. securities, and also into time'deposits in the banks. The result is-tiuit interest, returns from Governmeot .securities are lower on the average.than they have been for many years, and; hanks are discouraging further dePQcfta -on fixed terms even at the reIJba' general . ‘downward trend of in-

terest- returns from such investments and deposits is causing money to seek an outlet in other directions, among tljem the real property market, where the risks are greater, but the prosEective returns are more attractive. illustrative of the renewed activity in the real property market is the experience of one important building society, which, at its last meeting of directors, dealt with more applications for loans than the total of the previous six months. Most of these loans were for the purchase of homes already built. Some of the life assurance companies also are dealing with increased numbers of mortgage loans, the ruling rate being about 5| per cent.