COST IS NOT VALUE

Gisborne Herald, Volume LXXV, Issue 22585, 13 March 1948, Page 4

COST IS NOT VALUE

ISOLATED BUILDING SALES COMMITTEE RULING The dictum that actual cost of building does not necessarily represent value for sale purposes was applied in the decision of an application which came before the Gisborne Land Sales Committee at its sitting on Thursday, when a pro- > perty which had been subirdted at an agreed price of £BSO was approved for sale at £630 only. The case was a difficult one, the property being a hillside one at Whataupoko bought in 1941 and improved since by the erection of a small dwelling. Two private valuations submitted were £755 and £7BB, and the special Crown valuation was £4BO. All the valuers agreed that the cost of the improvements would show a higher figure, but the committee’s task was to find the fair value, which did not necessarily include any allowance for additional labour in bringing materials to the siteAn inspection was made by the l committee before fixing the fair 'alue of the property, comprising 2J acres and 'a small house, at £6OO. Another application of some interest was that concerning acres in Waimii road which the Kaiti Residents’ Improvement Association intends to develop as a recreational centre. The upset price was £750, and the special valuation £630, 'and the committee adjourned the hearing to enable the parties to bring evidence bearing on the discrepancy between these figures. Reductions With Vendors’ Consent The price of a house in Richards street, Opotiki, with lac., was fixed by the committee at £790, the vendor agreeing to a reduction from £BSO. Areduction from £2750 to £2550 was }

agreed to by the vendor of a new house on 28per. in upper Ormond road; a reduction from £4OO to £385 was agreed to by the vendor in respect of a house on lrd. 20per. in Stanley road; and a reduction of £ls to £260 was made in respect of a section of lrd. loper. in Iranui road, also with the vendor’s consent. A house in Aberdeen road, bought in October last for £414 and since improved, was approved for sale at £llOO, as against an upset price of £I3OO.

Other sales approved included a section of 2rd. at Te Karaka, at £75; a section of 2rd. with some chattels, at £375; a section in Upper Stout street of lrd. 20per., at £120; a section of lrd- 19per., at Opotiki. at £25; a house in Aberdeen road, with lrd., at £s7o^

Leaseholds were approved, as submitted for premises in Low 6 street, the terms being for £750 per annum for 10 years; a motor garage at Tolaga Wj Bay, for 10 years at £1 per v*eek plus rates and painting cost; and a section of lrd. at Tikitiki, at £ls per year.