HIGH PRICE OF LAND

Ashburton Guardian, Volume 54, Issue 192, 28 May 1934, Page 8

HIGH PRICE OF LAND

WANGANUI PROPERTY

FARMER'S VIEW OF REASON. WANGANUI, May 24. -Land Is at a premium in the Wanganui district, and inquiries for it are hard to satisfy. There are large tracts of country in the far back regions which have been neglected for some years, largely because of weakness in the wool market. Much of this country has bone gack into scrub and fern, and the price asked for it by. mortgagee owners is too high to Interest purchasers. Better class of land, however, is hard to obtain and prices, despite the slump; show no sign of falling. The latest sale on record, is that of a sheep property at Fordell, which, sold by a mortgagee in Wellington, brought in the vicinity of £26 per acre. Inquiries were made by a newspaper representative, and it was learned that there is plenty, of money awaiting investment in land if it can be bought at a price within reason. A legal firm in the city, administering estates, has a. good deal of capital for which good investments are hard to find. Land is too dear, and the investment of trust moneys is watched over by a very exacting statute. Asked for a reason as to why land was so high in value, a. farmer stated that it was a tangible asset. "It is doubtful what is really tangible, and What isn't these days," he said. "Those farmers who have been able to hold on to their land, are doing so with aU the power they can command." "With the assistance of the Mortgagors' Relief Commission?" the interviewer asked. "Yes, and no," the farmer replied. "I ,admit that the operations of the Commission have merely put off a rainy day, but hundreds of farmers who are in reasonable circumstances have a far greater regard these days for the bit of land they own, than they have for all the bank balances in the world. I doubt if that was true a few years Continuing, the farmer indicated that extensive dealing in land when prices for produce were high, had forced the price of land to the figure it was valued at a few years ago. With the fall in produce markets, there came a writing down of land values, but before that had proceeded far, the population as a whole suddenly seemed to realise that what was' being whittled down was the only tangible asset a New Zealander had. People came out of a false paradise in which they believed that money was their best asset "The mortgagee saw his investment suddenly vanishing into thin air, tne farmer proceeded. "He was prepared to make sacrifices to ensure,that it didn't vanish altogether. He made I those sacrifices, but that did not lower the price of land to a purchaser Whatever sacrifice was made had behind it the object of keeping the farm in workins order-of maintaining production If a purchaser came along and ottered the mortgagee cash for the mortgage would the mortgagee have been any better off with no land as a few thousand pounds in the bank " I very much doubt whether he woulci In some cases he might have been At any rate, he would have had to keep ag Lts on the scout to find him a suitable investment for his money at the bank It is true that he could hate found a few investments worthy -.*Mb* name, but if the he was faiming ceased production, would that not bfhelping to undermine the +«r a +hk country is built on? It o ul S 3 ceaseXq productive we cease our existence; that is **7 *« *"£ of land is high I will quaMythat fe y saying that land can come down a good wav vet however, and conditions would She better for it, but there » a pgnt below which.it must never come-that based on its productive value.