DROP IN LAND VALUES.

Pahiatua Herald, Volume XXII, Issue 5854, 29 September 1917, Page 5

DROP IN LAND VALUES.

DUE TO HEAVY TAXATION. Electric Telegraph—Press A*soc .ation. Auckland. Last Night. The opin on expiecssed bj the Pr-rue M-xkister, whan apeakmg ou the quetsuon of rents on I. ■ , that New Zealand was not rar away from a s> r.oua drop u land rali*3», hat, bee n dsc u seed oy representatives of hmancial institutions and auU agents here. One promine.it a-ui-<?a«r said he presumed the Pr. mo Minister s stattnwnta were made 011 the assumpt-on that the heavy taxation necessary to meet the Dominion’s war liabiliit.ee wouid cause a drop ,u land values. If such were the hash, of tlie statement he did not agree With the oprn.on expi cosed. The fact that the country was exceptionally pfaoeperous and that rural industries had st ululated by the war, enabled tli ivam unity to bear the extra taxation. Town population was bong -uinewhat depleted by the demands at the war, but the extfiu production fu the country means that the iwwd population would be kept fully employed. With such conditions and immediate fall am land values was remote. The potss bitty of a drop :n the value cf rrfhal Land.- afte: tee conclusion of the war he cons dered much more imminent. There would likely be an unprecedented tuiverrsai effect, to grow foodstuffs, which might result in the staple products of this country being somewhat deptx' at«d in value.

Local land agents were inclined to agree wth the Prime Minister’* opinion, giving as a reason the heavy indheiis,, i n land taxation. It is antic pated by them that any fall in values will he most serious felt in town and suburban property®, though aii decrease must be reflected to some extent in the values of riiihal lands. As showing the effecA of the texat on, the eas*. <>f a Queen street property was oted by aa agent, who said th*> owners paid' £7500 cash on the place, the remainder of purchase money being on mortgage. The land tax alone amputated to £250 a year, in addition to which the mortgagee was taxed on income from tho mortage. The investment returned less than 1 per cent, after taxation was paid. Exper ences of this 11aittiT'o. tho agent considered, wore bound to affect, values