VALUES IN WHANGAREI.

Auckland Star, Volume LXIII, Issue 140, 15 June 1932, Page 3

VALUES IN WHANGAREI.

ASSESSMENT COURT SITS

REDUCTION ON TOWN PROPERTY

(By Telegraph.—Own CorrcsponUftnt.) WHANGAKEI, this day. A sitting of the Assessment Court tinder the Valuation of Land Act, 1925, was opened in Whnngarei to-day, when applications for reductions in the borough and county and Oncvahi town district were heard. An application in respect of the land and buildings on Jack's Corner was made by Mr. T. C. Webster. The. property has a frontage of 28ft on Bank Street and 107 ft on Vine Street, the whole being built upon. Previous values were: £4096 capital, and £2410 unimproved. Mr. Webster said the property had fallen into his hands as mortgagee, the leasehold interest costing him £4000. The ground rent was only £17 per annum, payable under an old lease to the Whangarci County Council. His rents from the restaurant and electric service station wore only £403 per annum. He considered that the two-storeyed brick building was too good for the site, and that the valuation should be based on the return from rent. Mr. J. G. L. Hewitt, S.M., said that valuations were not based on this principle. The Court had to consider the value of the section in a state of nature and the value of improvements individually. In the ordinary way buildings were not erected for to-day. A man might be satisfied in the expectation of doubling the return in the future. In these times, an owner could not expect to get a return of 10 per cent gross. The only true test of unimproved value was the selling price of other vacant sections in the vicinity. Mr. A. K. Blackburn, district valuer, said that a section on the opposite corner had sold recently for £.'3OOO. Prior to the sale he had received applications for reduction in the case of this section, as well as that belonging to Mr. Webster. He had reduced both from £5000 to £4000 unimproved value, and, on the sale being reported to him, had reduced the valuation of the section opposite to £3000. He was agreeable to make a proportionate reduction in Mr. Webster's case. This was agreed to by the Court, and the values were amended to £4450 capital and £1000 unimproved.