THE PRINCIPLES OF VALUATION.

Manawatu Times, Volume XLVII, Issue 2763, 3 October 1923, Page 7

THE PRINCIPLES OF VALUATION.

ADDRESS AT LUNCH CLUB. The address at yesterday’s Lunch Club in Messrs. Collinson and Cunninghanies’ rooms was delivered by Mr N. H. Mackle, on “The Principles of Valuation,” Air D. Morrison presided. In the course of his address. Mr Mackie dealt with the various phases of the valuation of land, confining M remarks to general principles and avoiding all reference to controversial details. Land values, the speaker said wore purely hypothetical, a.nd the market was the only real test. The reasoning of the sound-thinking man was always preferable to the home method calculations of others, and the state of things that had prevailed during recent years had necessitated sound judgment in matters of valuation in order to survive. It was a common impression that the sale of land was the only guide to its value, but this was not so, and the speaker pointed out that many other aspects were also to be considered. The facts influencing values were numerous, some of which were very difficult to understand. The carrying capacity had to be judged, as well as productivity, accessibility, relative producing value, and general popularity. The speaker explained each element In the principles of correct valuation, and said that guesswork was fatal in accurate working, the only way being to make a thorough test beforo'-'plac-ing any figure. Improvements were considered only as they affected the selling value of the land. The system adopted hero owed its origin to an American. A depth of 100 feet was taken as a unit value —this in valuation of town properties only—and all calculations on sections of varying depths were made on this basis. At the conclusion of the address, several questions were asked, and the speaker was accorded a vote of thanks, on the motion of Mr It. Luke.