Must Probe Recent Property Re-Sales

Northern Advocate, 29 June 1944, Page 5

Must Probe Recent Property Re-Sales

That where properties sold within recent periods came forward for consent to re-sales, they must be tested, even when there was little difference in the price and Crown valuation, was shown in a case before the North Auckland Land Sales Committee in Whangarei yesterday. The committee will sit in Whangarei today and will hear cases at Dargaville tomorrow.

Sold in July, 1943, for £1450, a property with six rooms and conveniences, in Main Avenue, came before the committee at a price of £1550. Private valuation was £2198 and the Government valuation £ 1505.

The margin between the proposed price and the Crown valuation was small, but: because of the sale only 12 months ago, and the increase in the price by £IOO in that time, it was necessary to test the case, said the chairman (Mr. S. I. Goodall), with whom are associated Messrs. H. C. Fraser and A. A. McLauehlan.

The vendor gave evidence of improvements he had effected during his ownership ando f his purchase of a farm property.

A master builder, Cornellius D. Windust, gave his valuation at £2198, and told tire Crown representative (Mr. D. Stevenson) that the depreciation in 29 years was negligible.

Ronald S. McNabb, State Advances Department. gave his valuation at £1505. and said he had used recent property sales in the area as a basis for his land values. He had depreciated the dwelling at 1 per cent for 20 years, and I*4 per cent for ]0 years.

Consent was granted. Valuations Below Price

A four-roomed dwelling in Mansi' Street, with all conveniences, was sought to be sold at a price of £1250. Sold itr 1935 for £435, the house had been enlarged and renovated in thar year, and had been revalued by the Government in 1930 at £BBO. The previous sale had been a mortgagee’s sale, at the amount of the Government mortgage of £435, said Mr. ,T. S. Day. who appeared for vendor and pur-

chaser. The reason for the sale was that vendor’s husband had returned after three and a-half years’ service in the Middle East, and was undertaking a refresher ecurse preparatory ro taking over a farm, purchase of which had been approved by tiio Rehabilitation Board. This statement was corroborated by the vendor in evidence, and Mr. Windust gave his valuation at £llBO. Mr. Day said it was realised this valuation was below the suggested price, but the vendor had agreed to this evidence being produced, stating that if £llBO were the value, it should go forward. Mr. McNabb stated in evidence that he valued the property at £1095. Consent was granted at £.1130. Grave Importance

A margin of only £3O was shown between tlie Crown valuation of £lllO and the price of £ll4O, for a property of one and a-half acres, with dwelling of live rooms in Morningsido Road, while private valuation was £llß6, and consent was granted without evidence being called.

The committee considered the proposed sale of a vacant section in King Street, at a price of £l2O. The section had been previously sold on October 15, 1943, for £llO, and on October 28, 1943, at £llO. the chairman stating that any further increase should be strictly justified, as the committee attached grave importance to the previous sales. Mr. N. Wyatt said that several sections had been cut up and the increase represented the cost of fencing. Albert H. Curtis, land valuer, said that fencing had been carried out, and his valuation was £lO. Tire sections were worth from £llO to £125. The valuation of Mr. McNabb was £llO, and he said that the only improvement he could see was that tire fence wires had been tightened since his previous inspection, when the fence had been in existence. Stating that (he 1943 sale weighed heavily with the committee, the chairman sai: 3 lhai consent would be given al £llO. yesterday’s Cases Sought to Ire sold at a price of £3llO. with chattels al £l9O. a total of £3300, a property of 63 acres at Maunu. four miles from Whangarei, was considered by the committee. Tiie property had been bought in 1935 for £2125.

Tire vendor gave evidence that if lie were farming the property himself he would have no difficulty in milking 40 cows and would expect 250 lbs. butterfat each. Last season 5000 lbs. butterfat had been produced by 30 cows milked by a 17-year-cid Maori boy without supervision.

Evidence that he had valued the property in 1940 at £2305 for the valuation roll, was given by Thomas O'Carrol!, farmer, of Maungakaramea. On a productive basis be valued the property at £2222. on a carrying capacity of 55 cows averaging 230 lbs. butterfat. His sight valuation was £3286. Stafford B. Steedman. State Advances Corporation, gave his sight valuation of the property at £2715, with £173 for chattels. Me would not like to carry more than 25 cows, with the usual replacement.?. through the winter, and considered

that £260 would have to be spent to make the farm an economic unit. Decision was reserved. Previously sold in 1928 for £1350. a farm of 147 acres at Tikipunga was considered at a price of £3524. with chattels at £1269. a total of £4793. The Crown representative said that the Crown was interested in the property for soldier settlement, and as a serviceman discharged after service in New Zealand lire prospective purchaser would have priority, providing he fulfilled tlre qualifications.

The vendor gave evidence that he was a returned soldier from the last war. and had taken up the property in 1928. bringing it in by his own labour and money earned on other work. Butterfat proauction during the past four years from 4a to 49 cows had averaged 12.500 lbs. butterfat.

Mr. O’Carroll gave his valuation of the property on a budgetary basis at £4244 and £1135 for chattels, a total of £5379. He would milk 50 cows and would expect a production of 12.500 lbs. butterfat.

Mr. McNabb valued the building r.t £450 while Mr. Steedman said he valued tlie property on a budgetary basis at £2577 with £1199 for chattels, a total of £3776. Decision was reserved.