LOANS FOR HOUSES.

Star (Christchurch), Issue 17181, 26 October 1923, Page 6

LOANS FOR HOUSES.

A LONG DELAY. Phr Press Association. DUNEDIN, October 26. At the Land. Agents’ Association annual meeting, Air Kitchie, the president, while commending the (Sk>verninent’s legislative attempt to relieve th house shortage, stated that it was first anticipated that the legislation would apply solely to houses to be erected, but had been made also to a-pply to the purchase of houses already built. It should be clearly understood that while the Department would probabiy usually advance in the vicinity of 05 per cent on new properties, it would not. necessarily regard the price paid for older houses as the value of the property, in which case, the purchaser might have to find more than 6 per cent <and if further finance was required, private lenders would be loth to accept a second mortgage when first mortgage was given to the State. Another hindrance was the delay. He was informed that applications had been received in great numbers, and unless the staff of the Advances Departmentcould cope with this expeditiously, it might be months before a definite answer was received. The vendor could not bo expected to wait an indefinite time, and then find that the buyer was unable to finance nor could the agents be expected to temporarily find the finance between the time the application was made for a loan and when the money was forthcoming.