“UTILITY” VALUE

Greymouth Evening Star, 1 November 1946, Page 7

“UTILITY” VALUE

SALE OF PROPERTIES AT PAROA COMMITTEE TO INSPECT The “utility” value of two dwellings at Paroa, as compared with the values which could be attached to them by the approved methods of ascertaining replacement value, was stressed by Mr. C. R. McGinley, at to-day’s sitting of the Westland Land Sales Committee at Greymouth. Mr. McGinley appeared for W. C. and A. S. Wright, who sought approval of the sale of one acre freehold and railway lease, with two dwellings, to W. S. and M. E. Frickleton, at a consideration of £750. The price was opposed by the Crown, for whom Mr. N. Clay, Commissioner of Crown Lands, appeared. The members of the committee were: Messrs. W. M. Wallace (chairman), J. W. Greenslade, and J. Mulcare. Mr. McGinley said that the property was purchased by the vendor some time ago for £250 when the buildings were just standing. He had effected considerable improvements and alterations, amounting to some hundreds of pounds. The witness for the vendor valued the buildings and property, from a replacement point of view, at £650, but, from a utility point of view, at £7so—the price asked. The latter figure would be substantiated by the value of the property from a rental basis.

Evidence as to the valuations was given by Messrs. G. F. Shallcrass (for the vendor) and D. H. Thomas (for the Crown). The former’s figure was £650 and that of the Crown £513. It was stated that the buildings were very old and that the improvement work was done by an amateur, opinions as to its value varying. Mr. Shallcrass contended that it was possible to provide three sections by subdividing, but the Crown disagreed, on the ground that it would be essential to include the railway reserve, over which there was only a year-to-year title. After hearing lengthy evidence as to the state of the buildings, the committee decided to adopt Mr. Clay’s suggestion that it should make an inspection of the property, and reserved its decision in the meantime.