Page 1 Advertisements Column 2

Southland Times, Issue 2115, 12 May 1875, Page 1 (Supplement)

SOUTHLAND BUILDING, LAND, AND INVESTMENT SOCIETY. Established under the Building Society's Act 1866 TKT7STEEB. William Panton Grigor, Esq., Jas. Blacklock, Esq., John Walker Mitchell, Esq. President. J. Walker Bain, Esq. Commutes of Management. Messrs Kenneth Rose, Geo. Trew, Robert Tapper, D. L. Mntheson, William Blackwood, Peter M'Ewan, William Barbara, Robert Buchanan, William Sloan. SOLICITOB. T. M. Macdonald, Esq. Bankehs. National Bank of New Zealand. Secbetaby. Mr James Brown. Office. Esk street, Invercargill. THE above Fociety was established in 1869, and the number of shares is now 2814, representing the capital of £70,350 when realised. The present lending capacity of the Society is over £19,000 per annum. The leading features of the 3ociety|are as follow : — The net profits are credifed at the end of every year to each Shareholder in proportion to the amount then Btanding to his or her credit in ,the books, except subscriptions paid in advance. Shares date from the first pay night in the months of May, August, November, and February. Shares represent when realised the sum of £25 each. The Ruleß provide that borrowing members can repay the whole or any portion of the amount borrowed, in sums of £25 and upwards at any time, without previous notice, interest ceasing at once on the same. Members are of two classes, Investors and Borrowers. Investors pay Is per week per share, and this amount, with the profits added, annually accumulates till it reaches the sum of £25 per share, when a cheque is given for the shares invested. Borrowers pay in addition to the Is a week per share, interest at the rate of 8 per centum per annum, and when the Is a week per share, with profits, reaches the Bum borrowed, the property given as seourity is released, and becomes the freehold of the member. The Society has made arrangements whereby the mortgage charges are reduced to a minimum. Borrowers building houses according to plans and specifications approved of by the Committee are allowed progress payments od the Architect's certificate. ,It is considered that shares will mature in seven years, and on this data the following calculations have been made : — Investors of four shares pay 4s a week, or £10 8s per annum, which multiplied by 7 gives £72 16s, che actual payments in seven years, and then they are entitled to receive a cheque for £100, the difference of £27 4s having accrued as profit during that period. Suppose the sum of £10 8s were saved by an investor, and deposited half yearly in a Bank in payments of £5 4s each half year — the Bank allowing 5 per cent per annum — the result would be that in the period (7 years) while £100 would be accumulated in the Society, only about £87 would be accumulated in the Bank, so that a clear pjtrin of £13 in the period would result by investing savinge in the Society. Borrowers who have realised on four shares pay, in addition to subscriptions, interest at the rate of 8 per centum, per annum, making £18 Bs, which, multiplied by 7, gives £128 16s as the totul payments in seven years. Deduct from this sum the amount borrowed, and it leaves £28 16s, which sum divided by 7 shows that about 4 percent, has been paid for the use of the money. Suppose a member purchases a house for £200, for which he has been paying a rent of 10s per week, and he obtains from the Society an advance of £150 on the security of the same, his payments would be— Interest ... £12 0 0 Subscription ... 15 12 0 Total ... £27 12 0 per annum' In seven years his actual payments would amount to £193 4s, and the property would be his own. Had he not become a member of the Society he would have paid £182 as rent, and the property would still belong to his landlord. In order to arrive at the exact sum he has paid for the house by the aid of the Society, add to his actual payments in 7 years to the Society the £50 paid on pur« chaseActual payment £193 4 0 Paid on purchase 50 0 0 £243 4 0 and from this sum deduct the rent that he would have paid, and it is soen that £61 4s is the actual cost of the house to the member. Results such as these show the advantages of co-operation — how working men may acquire property which would otherwise be beyond their reach — and how those who can save a few shillings per week can find a most profitable investment. JAMES BROWN, 19th February, 1875. Secretary,