PROPERTY VALUES.

Otago Witness, Issue 3987, 12 August 1930, Page 35

PROPERTY VALUES.

SERIOUS DROP IN AUCKLAND.

STATE ADVANCES FACING HE AVY LOSS.

AUCKLAND, August 9. “ There’s a batch of 50 instructions to sell properties on which the Government has lent money,” said a prominent land agent this morning, when asked about the losses facing the Department of State Advances. He produced his file and it showed cottages for sale all over the district. “ One has merely to look at the advertisements,” he said, “to see that many other mortgagees are also anxious to sell. Every day several properties come under the hammer. It is the inevitable accompaniment of bad times.” “ The Government adopted the foolish policy of advancing 95 per cent, of the value of a property,” said another agent. “ and that was in times when all valued were inflated. Now that values have come down with a rush, places on which the Government lent money are actually not worth the amount advanced, and 110 agent in the world could get the prices the Government is asking. There is only one thing to be done, and that is to face the loss. The Government will have to lose the difference between the sum lent and what the property will bring to-day in a dead market. “ Buyers to-day only want bargains,” proceeded the agent, “ and will not look at properties priced as high as those the Government is now anxious to get rid of. Almost without exception the properties are of the same class, places built for workers. Alost of the places the Government wants to sell have been abandoned by the mortgagors, who found it quite impossible to keep up the payments. “ People who got in early and got their money at a cheaper rate of interest are said to be holding on to their places, but people who built after the Government had to raise the interest (up to about 6-J per cent.) have not been able to hold ou through the present bad times.