LAND VALUES.

Auckland Star, Volume LXXIV, Issue 213, 8 September 1943, Page 2

LAND VALUES.

A brief land agency experience would reveal to your correspondent "E E.N." that the land dealings of speculators, whilst providing political propaganda for the gullible and camouflage for Socialistic legislation, represent an infinitesimal percentage of total property transactions. It would also reveal that the average speculator is of benefit to the community. He buvs what no one else wants —neglected property—and he therefore secures it cheaply. He improves it and resells quickly at a profit. The essence -of his success as a speculator is a quick resale, to secure which his price must be below that of similar properties. The influence of the speculator, both in buying and selling, is therefore towards lowering prices, not booming them. The rocketing prices of houses and of practically everything else are due to inflation, high wages and competition. "E.E.N.'s" apparent ignorance of the amazing inconsistency of Government valuations in the same city and even in the same street, as shown by his proposal that Government valuations be adopted as a basis for price fixing, reveal the extent of his experience as a property owner. If speculators and land agents cause booms, how is it possible to have depressions, for are not speculators and land agents always with us? LUX