REVALUATION OF LAND.

New Zealand Herald, Volume LXVII, Issue 20618, 17 July 1930, Page 8

REVALUATION OF LAND.

WHANG AREI EXPERIENCE.

SELLING VALUE THE BAS18«

DRASTIC REDUCTIONS MADE.

BT B.J.E

When the lands comprised within tba Whangarei County were valued about 10 years ago, the Government estimate of their unimproved worth was; £2,035,000. According to this year's revaluation the unimproved value of the county is noir £1,731.500, a fall of £303,500. . Widespread comment was caused a weeks ago when the figures associated with the revaluation of the county wer« announced. Many individuals were astonished to find that their equities had been seriously reduced, and those who had mortgages falling due vrere alarmed at the prospect that they might not b« able to renew People who had their land on the market for sale suddenly found themselves faced with a reduced official value to place before prospective clients. Those in the enjoyment of State advances those who were not carrying mortgages and those who fortunately regarded their farms as permanent homes and did not desire to sell were, of course, not perturbed. To them the lower valuations meant reduced Government land tax and less death duty in prospect. A general unrest vfas occasioned, however, by the fact that in the opinion of the Government valuers the land within the county was worth (unimproved) £303.500 less than it was ia 1921, notwithstanding the many thousands of pounds that, had meanwhile been spent on the construction and maintenance of roads, improved mail and rail ser\'ices, the extension of telephone lines, tha progress of draina'ge works, and the mous development of the productive capacity of the individual farms. The Basis of Valu<;s. During the past years the general opinion has been prevalent that, the Government values represented ;i defined assessment for taxation purposes, and that in some mysterious way the "selling value" was about 20 or 25 per cent, higher. The information issued with this year's valuation notices, however, makes it definitely clear that the valuers hav« endeavoured to arrive at the actual selling value of the land based upon the productive capacity of the individual farms. This is the departmental definition of value:—

"Unimproved value" of an:r land means the sum which the o-vrner's estit« or interest therein, if unencumbered by nn7 mortgage, or any charge thereon, might be expected to realise at the time of valuation ii offered for sale on such reasonable terms and conditions as a bona fide seller might be expected to impose.

There can be no doubt tlhat the sales actually recorded in any particular district have in the past always influenced the Government valuers in making their assessments. Thus, in 1920-21, when peak prices were being realised for this Dominion's primary products, extravagant ideas of land values prevailed. With tha falling markets that were subsequently experienced thousands of second and third mortgages became valueless.. Thus the assessments of 1920 and 1930 were made at times when prices were at their very, highest and very lowest, respectively. Hence the extraordinary disparity betvreea the two sets of figures. Variations in Reductions. A review of the values shows that the reductions varied in the different localities from 5.59 to 40.92 per cent. The variation was so marked as to call for soma explanation. In the various ridings tha percentage reductions were as follows: Onerahi town district (Manaia Riding), 40.92 per cent.; Kiripaka, 25.84; Maungakahia, 23.06; Otonga, 22.13; Hikurangi, 21.52: Wairua, 20.61; Mangapai, 18-61; Manaia (outlying), 17.74; Maungakaramea, 16.41; Maunu, 11.33; Waipu, 5.59. . Expressed in a different vray, farms in the different ridings which were valued at- £IOOO 10 years ago are considered to be approximately worth only the following amounts to-day:—Kiripaka, £740; Maungakahia, £770 ; Otonga. £780; Hikurangi, £785; Wairua, £795; Mangapaf, £815; Manaia (outlying), £1322; Maunga. karamea, £835; Maunu, £388; \\ aipuj £945. For many years Onerahi was the shipping port tor Whangarei and further nortl to Opua. It. was there that the boat* and trains junctioned. The coming oi the through train to Auckland eliminated the Onerahi line so far as the passengei and most of the goods traffic was concerned. But there was an added caus« for the collapse of values at Onerahi namely, the construction of a metal roat through, which enables week-enders t« reach a greater variety of more remoU resorts further down the harbour. Ao cot ding to Government standards a seo tion that was worth £IOO ten years ag« is valued at- only £69 to-day. Th> altered shipping conditions and the im proved motoring facilities, plus the it> flated prices of a decade ago, explain am perhaps justify the value fall. Position at Waipu. At the other end of the statistical tabh is Waipu. Here the minimum fall <s* curred, 5.59 per cent. The explanation of the maintenance of values in that dis trict is that one of the finest bitumei roads ir. the country had been constructs there, between Oakleigh railway statioi and Waipu, a distance of 17 miles. Tb cost was about £II,OOO a mile, and tis work was done with Government money the road having been made in lieu of i promised railway. Here is a direct in stance where Government values have be« maintained because the access roads wer made at the Dominion's expense. If th Oakleigh-Waipu road had been made witi moneys raised by special loans, the repay ment of which had been undertaken -bj the ratepayers of the district, the Waipu revaluat ion would have approximated mor« closely to the average reductions sustained by the other ridings. It must not be thought that the perience in Whangarei County is pecuhai to that district. Reports from other provinces, according to a local valuer, indicate that in certain districts the writing down in values has been even mora drastU than it has been in the Whangara County.