FARM LAND VALUATION

Press, Volume CII, Issue 30155, 12 June 1963, Page 14

FARM LAND VALUATION

Explanation Of Methods

Some rural valuers were prone to value old farm buildings higher than they should, the Valuation Department dis.net rural valuer for Canterbury (Mr C. A. Fairweather) told a meeting of about 50 farmers from the ■Rangiora district at Fernside last evening. Farm buildings were valued on today's values less depreciation, and it was quite possible they are worth more at present than they were 20 years ago, Mr Fairweather said, when asked if buildings were valued on current or replacement value.

Available mortgage money was a very important factor in the regulation of land prices If money was hard to obtain the price of land tended to ease, or at least remain steady, but if mortgage money was readily available prices soared, said Mr R. Holland, a stock firm land valuer.

Government valuations could not be expected to remain at a low level with the inflationary land prices of recent years. Premiums also had to be paid for farms if the purchaser wished to live in a more favoured locality, he said

Bo:h Mr Holland and Mr Fairweather emphasised that comparative values of similar land sold in a district was the only reasonable basis Tor farm-land valuation.

Because of the competition from neighbouring owners isolated sales of bare land in the settled districts would not be used as a comparison for valuation, Mr Fairweather said.

The latest statistics compiled on farm sales in relation to valuation showed valuations to be 23 per cent, below the value realised for the properties when sold. Land values were based on the price paid, by “prudent, well-informed ‘ purchasers" not only on the auction price, although the Valuation Act said the valuation should be on the sale price, Mr Fairweather said.