VALUE OF WOODEN DWELLING

Southland Times, Issue 25652, 20 April 1945, Page 6

VALUE OF WOODEN DWELLING

Case Before Land Sales

Court

Decision was reserved by the Land Sales Court Appeal Tribunal when an appeal concerning a wooden house in Ythan street was heard by it in Invercargill yesterday. The consideration price of £BOO had been reduced by the Southland Land Sales Committee to £675. Mr Justice Finlay presided and Mr W. E. Scott was associated with him.

Mr John Tait, who appeared for the purchaser, said that the purchaser opposed the vendor’s price. In Southland 50 per cent, of the workers obtained their finance through the Southland Building Society, and in this case the purchaser found that the amount available from the society was very much lower than expected on the valuation before the committe. Inquiries were made, and it was found that the house was much older than was believed, and there was a considerable portion on wooden piles. They had had other valuations made and these coincided with the valuation placed on it by the Southland Building Society. His Honour said that building societies throughout New Zealand were inclined to be conservative in their loans.

Mr Tait replied that that did not apply to the Southland Building Society. His Honour remarked that if building societies were doing their job they were playing for safety. Hugh Ritchie, secretary and a director of the society, said that the Land Sales Committee worked on 1942 valuations and the Building Society on today’s valuations, which they found were £lOO higher than those of 1942. In 95 per cent, of the valuations they valued over the amount assessed by the Land Sales Committee.

His Honour remarked that that might be the result, but as a matter of general principle the society would tend to safety. The average house coming before the society today was valued at practically the price paid for it, said Mr Ritchie. In the case before the tribunal there were exceptional circumstances. The society lent only half what the vendor paid. He did not know of any other place where a six-roomed house in good condition could be bought for less than £BOO, said his Honour. After further evidence had been heard the court reserved its decision.