VALUES TOO LOW

New Zealand Herald, Volume LXXIII, Issue 22399, 21 April 1936, Page 11

VALUES TOO LOW

INCREASE REQUESTED ASSESSMENT COURT CASE « UNUSUAL APPLICATION An unusual request was made to the City Assessment Court yesterday, when Mr. 1?. McVeagh, on behalf of a client, asked that the valuation on two properties in Berest'ord Street and Somerset Place should ho increased. Mr. W. 11. McKcan, S.M., who presided, said this was the first time lie had received such a request, hut Mr. McVeagh said it was not new in his experience.

The properties were a section and wooden house in Somerset Place, which was assessed at £.'i6 for rating purposes, and a section in Beresford Street, which was assessed at £.' SO. Mr. McVeagh snid his client. Miss S. P. Fallon, was a trustee in an estate and she felt it was her duty to say that the valuations were too low. She did not want it to bo said that she had acquiesced in the valuations.

After consultation with the City Valuer, Mr. P. F. Notley, the president said he was prepared to increase the assessment on the house property from £.'56 to £l6, but as the section was gully land he did not think it was worth more than £6OO and he would not interfere with the figure of £3O.

Mr. McVeagh said he would accept that and the increase was made.

Rental Return

A reduction from £477 to £425 was granted in respect of High Street Chambers, a two-storev building on the west side of that thoroughfare. The Public Trustee (Mr. Ryan) claimed that as the total rental to-day was £4OO that represented the full rental value. Evidence was given by Mr. C. E. Bennett, who valued the property at £8360 and on that he assessed the maximum rental value at £4lB.

Mr. McKean: If you have a build- | ing worth £8360 you would expect to get more than 5 per cent in rentals. Mr. Bennett: Not just now. Mr. McKean: Well you won't get many people to invest in buildings if j they can't expect to do better than | that. South British Building ! . The right of the City Valuer to base ; his assessments of the rental value of i various floors of the South British Insurance Company's building in Shortj land Street on the amounts charged bv the company to its head office and Auckland branch departments was challenged by the company, for whom Mr. Hose appeared. The City Valuer had assessed the rental value of the ground floor, occupied by the Auckland branch of the company, at £1250, and the seventh floor, used by the head office of the company, at £9OO. When Mr. N. H. Newcomb expressed the opinion as a valuer that the rental values should be £IOOO and £735 respectively, Mr. Notley asked whether it was not a fact that the company charged the branch office £2OOO a year rent and the head office £1350. He was told that this was so. but it was merely an internal arrangement by the company. It waS later explained by the general manager of the company, Mr. J. Morton. that these rentals were fixed when the building was first erected and were in keeping with rentals it was expected the company would receive for suites rented to outside tenants. However. the building had been practically empty for nearly two years and it had been necessary to reduce rentals, but as the rents charged to the branch and head office were merely book entries they had been allowed to stand. He thought £I2OO with rates would be a fair rental to-day for the ground floor and about £740 for the seventh floor. The Court reduced the assessments to £llOO and £832 respectively.