SPENDING WITH CAUTION

Sun (Auckland), Volume II, Issue 531, 7 December 1928, Page 13

SPENDING WITH CAUTION

PROPERTY OUTLOOK GOOD MORE CONFIDENCE WANTED The property market in Auckland is re acting slowly to the bright industrial outlook, and inquiries are numerous for house and farm-holdings. It is expected that business will not improve materially until after the holidays, however, as there is a decided note of caution in property dealings. Throughout the business world here there is a. Lone of health and vigour—the expectancy of better times to come as soon as the people realise that produce promises exceedingly well —and a post-election lull which is experienced this month is in no way accepted as indication of a generally dull marWe can get money now at G per cent.,” one dealer in farm properties said this morning, when discussing the future, “and this assuredly has helped things along toward better prices and greater inquiry for rural securities. “In fact, it can be safely said that there is more inquiry for country holdings now than there is for suburban and city securities. The suburban enterprise was overdone, and now some of the holders of shops are not getting a return of 3 per cent, on their money. On the other hand, there is a good prospect for the small farm, and inquiries are l>eing made with much more confidence than a year or so ago.” STOCK TOO HIGH One of the difficulties which farm dealers see in this situation is the exceptionally high price of stock. “Stock for the farm is far too high to warrant any encouraging sales,” another man commented. “At the present time we have to pay up to £5 for the animal which we used to get for £1 15s or £2. This turns prospective buyers off farming propositions, and has caused several big deals to hang fire lately. In the suburbs of Auckland, and, indeed, further down the province, there is a steady demand for one-man payable farms, and those who are occupying this class of property are holding in anticipation of a return to high prices, irfome of them paid big prices, and when the market stiffened recently, they withdrew their low-priced offers, and hardened in sympathy, always hoping to get their money back. In house-property people are reluctant to buy. Land agents consider this to be due to a variety of causes, one of which is the delay in obtaining Government loans. “What is the use of applying for a Government loan?” many prospective home-builders ask, as they sign up for the lease or the rental of a suburban house. UNCERTAIN TRANSPORT The low price of building is a contributive cause of a brisk inquiry for sections just now, which seems to indicate to agents that a period of activity might be expected shortly. The prevalence of flats close to the city, however, must offset the renting of houses, while the consistent failure of the authorities so far to solve the transport problem has turned many people from buying in suburbs some distance out. “There is a good tone in the market,” one land agent ventured this morning, “and I fully expect that as soon as the holidays are over, and the people settle to a calm review of tho country's prospects, business will become quite lively. There is a lot of money about, but it is slow in loosening up.” A solicitor who handles a great deal of linance for his clients said: “There is so much money to come in within the next few months for our produce that I don’t know where we are going to be within the year." PROFITING BY MISTAKES “Do you think there is to be another boom?" he was asked. “No, I cannot believe that,” was his reply. “In fact, I consider that the present reluctance to spend is evidence that the young generation appreciates the fallacy of wild spending, as evidenced by the boom a few years ago, and they are progressing with extreme caution. “A little more confidence is required before tilings become sufficiently fluid to meet the obviously bright outlook." Rents are dropping slightly throughout Auckland suburbs, assisted largely by the flats being erected, and also by the sluggish buying forcing owners to let their places. Houses demanding above £2 in rent are hanging fire, but below that there is a steady demand for homes in close-in suburbs.