LAND VALUES-GAINS AND LOSSES

Evening Post, Volume CXXXIX, Issue 50, 28 February 1945, Page 4

LAND VALUES-GAINS AND LOSSES

Officers of the Lands Department, according to the Minister of Lands, are on. the look-out for breaches of the Servicemen's Settlement and Land Sales Act. The statement directs attention to the operation of the legislation and its effect on the determination of values. While it is desirable that transitory and speculative values should be excluded from the price at which i properties are allowed to change hands, there are other factors which have an important bearing on transactions. When other values are- changing property has an added attraction as a form of stable investment, and the soundest way of keeping land prices at a reasonable level is to take such steps as are necessary to bring about a general stability of values. Otherwise the effect may be, not only to exclude ti'ansitory and speculative values from land transactions, but to peg land values at an artificially low level. Mr. Skinner quotes figures to show that the total amount of reduction directed in the 5967 cases dealt with between October, 1943, and the end of 1944 was £713,857. Although he does not claim that the whole of this sum represents a saving to buyers, as some transactions were abandoned by the vendors when the price was reduced, he makes the statement that, taken all round, "it is possible that the Act has saved buyers a total sum approaching £750,000." It should be pointed out, however, that there must be deducted from this "saving" administration charges and other costs arising from the new procedure vendors and purchasers must go through. And, at best, the saving is no more than a transfer of money from sellers to buyers. What is one man's gain is another man's loss.