2 Appendix C.
illegal practice still prevails as there is still the demand for accommodation.
5. FINANCE.
I do not attempt to go into the intricate question of finance, but I do say that "rates of interest" on loans available for building schemes are of vital importance in connexion with house building.
Capital invested in building is locked up over a long period of years and in order to convince house owners to rebuild, it is necessary that a return is made to cover interest, depreo- iation and other charges.
The cheaper the rate of interest at which loans oan be borrowed, the lower the rents at which houses can be let. The question is to make finance available to house owners to repair, rebuild or redevelop their properties at a low rate of interest. If banking institutions are not prepared to finance such building loans at reasonable rate of interest (I do not suppose they would at present), Government should encourage and aid private enter- prise to rebuild damaged or old properties. If anything is to be done to relieve the acute housing shortage, rebuilding has to be carried out on an adequate soale to meet the demand. Without Government aid, it only means that the deplorable slums, conges- tion and overcrowding have to remain and this housing shortage has to take its long tedious course to die its natural death.
Another factor that house owners are hesitating to rebuild is the "wait and see" policy, with the hope that building cost will settle down in time.
6. BUILDING SOCIETIES.
It is remarkable that there are no Building Societies sponsored by private enterprise in the Colony. It is here where Government could stimulate public building by subsidies or by granting special facilities to responsible Building Societies so formed in financing house-purchase systom.
7. HOUSE-PURCHASE SYSTEM FOR THE MIDDLE CLASSES.
There are hundreds or perhaps thousands of middle class working people in the Colony who would like to build their own homes provided there are facilities granted them. A part of the purchase price can be put down and the balance borrowed from a Building Society; an annual sum which meets interest and provides for gradual payment of the principal over a period of, say, 7 years, after which the house becomes his property.
8. WORKABLE SCHEME.
Detached, semi-detached or two storey terrace houses
oould be built to suit different purses.
Areas for development for housing schemes of this nature, for say, 300 houses could be earmarked at, say, 50 cents per sq. ft., with a nominal building covenant of, say, $40,000 per 10,000 sq. ft. Roads and sewers to be laid by Government, Government to grant facilities for land prices to be paid in, say, 3 instalments.
In order to obviate any speculation, it is to be stipulated and insisted upon that houses completed are not allowed
36