HOW VALUES ARE ASSESSED
The Commission states that the Now Zealand State Advances margin of security (75 per cent.) has proved sound. It is greater than_ the amount loaned by important institutions in Iturope and America. It is essential to success, says the report, that valuations should be on a sound and conservative basis. The embarrassment of at least one of the Canadian schemes is to some extent due to failure to ascertain the true productive value of land over a sufficient period. On the other band too conservative values will likewise militate against success. On the Continent land cannot bo mortgaged tor more than two-thirds of its value, and in most cases the amount loaned is less—not exceeding 50 per cent.
The Commission’s opinion is that in New Zealand the system and method of valuation adopted by the State Advances Office should be followed for long-term loans, but. that the valuation should be based on the productive value of the land ascertained over a period of at least five years, and the amount advanced should not exceed two-thirds of the valuation.
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Bibliographic details
Evening Star, Issue 19326, 12 August 1926, Page 9
Word Count
182HOW VALUES ARE ASSESSED Evening Star, Issue 19326, 12 August 1926, Page 9
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