A REMARKABLE TRANSACTION.

Otago Witness, Issue 2934, 8 June 1910, Page 4

A REMARKA BLE TRANSACTION.

DEAL IN CLOSER-SETTLEMENT LAND. ASHBURTON, June 4._ Under the headings of "Dealing in Closer Settlement Land" and " Suggestive Figunes," to-night's Guardian says:— " When the Government first began to acquire estates for closer settlement, and to place people on the land so acquired;, very few foresaw the profits that would accrue to those who at the ballots were fortunate enough to secure sections. As years went past, however, holders of sections sold from time to time,, and received large sums, amounting in some cases to> thousands of pounds for goodwill. The latest example of this is a sale which took place in this district recently—in fact the transfer of the section was passed by the Canterbury Land Board at its meeting on Thursday. The section in question is situated on Highbank Estate, which was acquired by the Government in 1896, and the settlers took possession at rentals averaging about 7s 6d per acre. The sale recently effected is said to have realised to the holder the large premium of £ls per acre for the goodwill of the lease. On a basis of 5 per cent, interest on the capital amount thus paid, the new possessor will pay an annual rental of £1 Is lOd per acre, including the original rental of 6s lOd. As the area is 591 acres, the unearned increment secured by the seller amounts, less he cost of improvements, to £7365. Another feature of the transaction is that the buyer has assessed the value of the section at £22 per acre, or an increase of 200 per cent, on the average price of £7 10s paid' by the Government lor the land in 1896."