INFLATED VALUES.

Kaipara and Waitemata Echo, 29 April 1920, Page 3

INFLATED VALUES.

IS THERE GAMBLING IN

LAND ?

In an editoral reference to the large prices realized for the Kopane lands at the Feilding sale, the Star says : "Taking a lons view of the prices of primary products, have the men who take up land at £150 or £170 an acre a reasonable prospect of paying their way? We doubt it. We fear that one or two motives are behind such purchases —either the intention of selling again at a substantial profit, or reliance on export prices being maintained at their present level or going to a higher one. It may seem absurd to suggest that men would speculate at such figures, but we know of a case in Taranaki where dairying land was bought for £150 an acre and re-sold shortly afterwards for £180. Speculation in farm land is going on all over the country, resulting in under production and dangerous inflation of values. As to the future of pricos, about nothing perhaps is it so diffioult to make a forecast, but surely it is well to be on the safe side. It seems to us that to buy land at a figure that will pay only if prices do not fall is a gamble. It is a form of gambling that is being widely practised, and if prices tall appreciably the consequences may be disastrous We admit that a remedy is not easy to find, but suggest that Parliament might give its best attention to the whole problem of inflated land values and speculation. The person we would |ike to see taxed heavily is not so much the one who buys at such prices as the one who sells particularly if he has previously bought as a pure speculation and has got improved the land. It would he interesting to know, by the way, what is the Government valuation of this block near Fielding. The Government itself, by its policy of buying so much improved land for soldiers at high rates is partly responsible for the fact that values are soaring.