SALE OF FLATS

Greymouth Evening Star, 22 March 1946, Page 4

SALE OF FLATS

ALEXANDER STREET DEAL DIFFERENCE IN VALUES A difference of £ 180 in the values placed upon a nine-roomed Alexander street dwelling, which is divided into three flats, was revealed ■ when the sale of the property was : placed for consideration before the . Westland Land Sales Committee, which sat at Greymouth this morn- ' ing. Mr. R. P. Dickson (Mr. A. M. . Jamieson) sought the committee’s approval for the sale of the building, which had been bought in 1943 for £750, to Mr. A. B. Walker for £975, this figure being opposed by the Crown, whose original value was £795. . The committee (Messrs M. Wallace, J. W. Greenslade and J. Mulcare) reserved its decision. For the vendor, Mr. G. F. Shallcrass said he placed the value of the section at £lOO, and the building at £875. The back portion of the dwelling had been erected in 1901, and the front at a later date. He knew the property had been sold in 1943 to.the present owner for £750, but considered this was due to the previous owner seeking a quick sale. The main part of the building he valued at 14/- a foot (a total of £1378), the lean-to at £lB2, verandah £32, and two bay-windows £3O, bringing the total to £1622. From this he subtracted 50 per cent, for depreciation for 45 years’ life, bringing the total to £Bll. Outbuildings, with the section and other ground improvements, brought the total value to £975. The property had been divided into three flats over 18 years ago, witness said, and its annual income was £2BO. Outgoings left a balance of £9B/1/4. Capitalised at five per cent., it brought in an income of £1969. On this basis, its earning capacity was over 10 per cent, on the price sought. He had subtracted 22 per cent, from the footage value of the property . because of excess area. He had made additions to the value because of the extra appliances foi' flats.

Evidence for Crown.

Mr. E. A. Warnes, valuer, giving evidence for the Crown, said the building was in reasonably good condition. Though the building was now in three flats, there were no separate conveniences. He had placed a footage value on the building of £l9lB and had placed upon it an excess area depreciation of 25 per cent; £479, leaving £1439. Depreciation of 57| per cent, for 46 years’ life amounted to £827, leaving £612 as the house’s value. To this he added £5 for the shed, £8 for paths and £lO for fencing. The total value, with the addition of £ 160 for the section, was £795. He considered excess area depreciation should be allowed, even though the building was used as flats, as the flats were not self-contained. Maintenance was good, but little over the ordinary. The building seemed to have sunk a little in the front righthand corner. He was satisfied that excess area should be taken out over the whole building. To Mr. Jamieson: He agreed that the house was too big for an ordinary family. Had he know that the whole front of the building had been renewed, he would have suggested that those repairs were necessary and would not have lowered the rate of his depreciation. He did not know that the back lean-to had been built within the last 25 years, but if that was so, the rate of depreciation should be slightly lower. The new front would have made no difference to his rate of obsolescence. He ad-

mitted, in view of his excess area depreciation, that he should have allowed a sum for the extra cooking arrangements. He would not, however, place more than £lO on them. He considered the value, £lOO, placed by previous witness on the section was too low. A Bargain in 1943? Regarding the earlier purchase for £750, Mr. Jamieson submitted that the committee should conclude that the present applicant had received a ,bargain in 1943. Mr. N. Clay, Commissioner of Crown Lands, said that his valuation would be brought up to £B3O by the lowering of the rate of depreciation on the lean-to portion of the building. Application Adjourned. An application by G. T. Grant and M. L. Vidulich (Mr. Jamieson) for consent to the sale of a Threadneedle street dwelling to J. Finlay for £550, was adjourned for two weeks.