SMALL HOLDINGS

Hawke's Bay Tribune, Volume XXVI, Issue 112, 24 April 1936, Page 9

SMALL HOLDINGS

Land Agents Report Brisk Inquiry FACTORS IN THE MARKET Inquiries for small farm holdings in the Hawke’s Bay district are increasing daily in number, according to Napier land agents questioned yesterday. Many investors are now attempting to buy small farms from about five to 50 acres in area, but the opinion is that they are buying purely for investment purposes, and not to work the farms. Waiting lists of land agents having business in farm properties, show hundreds of names waiting to purchase.

Although some farms have changed hands recently, in the majority of cases buyer and vendor cannot agree upon a price. This was explained by the fact that must farms are now carrying mortgages taken up in the land-boom period of some years ago, and the mortgages are now for a greater price than the farms are really worth at to-day's tallies. The vendor attempting to obtain an equity of about £5O above his mortgage, in the case of the small farms mentioned, is unable to agree with prospective buy ers and to arrange a price that is mu tually agreeable.

There is no shortage of money with which to pay a deposit on farms, or to buy them for cash. The majority of men who wish to buy have ample money, and one agent mentioned that there were clients with £2OOO or £l5OO with which they wished to buy land. Considerable interest is being taken in the policy of the Government in re gard to fixed prices and other legislation which vitally affects the tanner. Many farmers are determined to keep their farms, failing a good price being offered, in order to reap the initial benefit of any change for the betterment of the farming community, and to take advantage of the increased value that is expected to follow in the wake of the legislation. In the meanwhile, although the in vestor is willing to speculate with small land properties, negotiations for the sale of larger farms are not likely to experience any such stimulus until the attitude of the Government is clearly defined.

In regard to Crown Lands, there has been a decided increase in demand, from observations by those interested, and laud agents, while not dealing in the land, Lave said that inquiries are much more brisk than they were even a few months ago. In this type of land, there appears to have been more inquiries for properties than can be eas dy satisfied. Even in tho Wairoa district, where such land was seldom even inquired for, properties have changed hands.

in all, indications are that land values are on the upward trend, and that brisk competition tor available properties can be expected in the neai future, and more so when buyers can be sure of what the effect of uew land legislation will bo.