PROVISION OF HOUSES

Poverty Bay Herald, Volume LXIV, Issue 19453, 12 October 1937, Page 5

PROVISION OF HOUSES

STATE PLAN NOT ENOUGH FASTER MEANS NEEDED AID IN PRIVATE BUILDING (Special to the Sordid.) DUNEDIN, this day. The effect of the Government's housing scheme on building costs was discussed by Mr. P. W. Stabb, the president, in his address to the annual meeting of the Otago branch of the New Zealand Real Estate Institute. The conclusion he reached was that unless the Government gave more encouragement to the private builder, the existing shortage of houses would not be overcome for many years. In view of the heavily increased cost of building, Mr. Stabb said, there had been very little speculative or investment building going on and consequently a great shortage of homes existed. Houses to rent were almost unprocurable, and, on the other hand, there had been a marked slackening off in the demand for building allotments. The corporation and Government building schemes were now well under way, and some of the houses were occupied. A good deal of criticism of costs of these homes had been made, and it seemed to him that those whom the scheme was intended to benefit would find it very difficult to keep up their engagements.

He realised that the Government was in earnest in its endeavour to give better housing conditions to the people, and, to some extent at least, these houses were lessening the acute shortage. In his opinion, however, it would be many years before thh shortage could be overcome unless the Government gave more encouragement to private enterprise to build for investment purposes.

There was a plentiful supply of money available for first mortgages at the current rate of interest, 4| per cent. Mr. Stabb said, but the difficulty was to obtain money on second mortgage so as to bridge the gap between the first mortgage and the amount the purchaser had to buy his home with. If the Government would assist purchasers who desired, with limited deposits, to buy or build properties in their own choice of position and to their ov/n particular requirements, he believed it would, if not solve the problem, at least make it easier to obtain homes.

Speaking of financial conditions generally, Mr. Stabb said it was true that there was a certain amount cf prosperity in the Dominion at the present time, and, while the Government was able to go on spending money ad lib. this would continue, but if there should be a serious fall in the price of exports a depression might be nearer than legislators realised.

There was no doubt that the financial barometer was very jumpy, and, during the past few months, they had seen a very considerable drop in stocks and shares. This brought him to his point that the best investment was real estate. It was not subject to the same fluctuations as other investments, and, if judiciously bought, could always command a reasonable return and a bigger margin of safety than any other form of investment.