DEMAND FOR HOUSES

Waikato Times, Volume 115, Issue 19270, 31 May 1934, Page 16

DEMAND FOR HOUSES

TIME FOR BUILDING REVIVAL. REVIEW BY LAND AGENT. A plea for a revival of house building in Wellington was made by a land and estate agent, who informed The Dominion that there was a brisk demand for new bungalows. Up to the present very few builders had made a start with “cottage building” because of the difficulty of obtaining sufficient money on first mortgage, but the financial outlook was improving. "Roughly speaking, costs of construction are still ahead of 1911 figures," the agent said, “ and there have been three recent rises in timber prices in Wellington; with the prospect of further rises if cottage building does start in earnest. To overcome any such tactics, it, would be necessary to remove the duty on imported timber. “ Mortgage money had been hard to obtain until recently, but there appears to be a loosening up somewhat at present, and first mortgage interest rales arc somewhat easier, as compared with three years ago. Lack of confidence on the part of lenders has contributed in no small measure to the lack of new building enterprise. City and near-by suburbs are very fully built upon, and it is now necessary for intending buyers of modern or new bungalows to purchase out of the city.” Sound Investments. First nfortgaglees need have no fear about tho safety of lending on house property in Wellington, lie said, for with few exceptions houses on which three-fifths or two-thirds of the valuation has been advanced on first mortgage were readily saleable for the price of the mortgage and a fair margin over the amount of first mortgage. The main difficulty was to close the gap between price of properly and the sum total of deposit and first mortgage; for few builders were in the position to take a vendor’s second mortgage. If second mortgage money were available in ample supply .ft reasonable rate of interest tho position would be eased considerably. “ Land values jumped up tremendously with the last building boom in Wellington; and this, added to the freedom with which the State Advances Office lent.up to 95 per cent of valuation, plus extra profits made on timber, caused housing costs to soar to unprecedented heights,” the agent continued. “ Wellington has always been noted for high rents; and to-day we see the disheartening spectacle of people in search of a home to rent, and finding it almost impossible to secure one; especially within their means. “Many so-called fiats are not, in reality proper fiats at all, and the city council has ‘ winked ’ the eye at llagrant breaches of its by-laws, evidently knowing the shortage, of accommodation in the city, if the bylaws were enforced, and the universal tram fare reduced to .'ls per 19-trip ticket, considerable impetus would bo given to building.