VALUES OF LAND

Wanganui Chronicle, Volume 77, Issue 83, 9 April 1934, Page 8

VALUES OF LAND

FACTORS IN DECLINE. 0 r INFLUENCE OF LEGISLATION. ? The question of the effect of the 3 mortgagors’ and tenants’ relief legislation on land values, when put to a j’ number of Auckland estate agents by the New Zealand Herald, proved to be c an intricate one capable of a variety of answers. The circumstances of each s property differ so widely that it was found difficult to make statements that J would have a general application. . There was a consensus of opinion that ’ the price of land has definitely come down during the past 12 or 18 months, but of this there are several explanations, while numbers of individual exceptions can bo quoted. c One ageut sumtned up the position a by saying that while the mortgagors’ t relief legislation was disturbing for d the capitalist, it had proved a good l thing for tho man having a hard strug- r gle to keep going in business or 0:1 r the land. It had undoubtedly enabled a many men to carry on who otherwise c would have had to give up the strug- c gle, but it might be questioned whether c this was a desirable result. There were those who took the view that it c would have been better for men unable 1 to pay their way to face the worst at once and give up rather than have the inevitable day of reckoning indefinitely postponed. f Another land salesman with wide j practical experience of farming was c definite that legislation had not g brought down land values. There was s no reason why it should have such a tendency. 'ihe Mortgagors’ and t Tenants’ Relief Act was not really in- j. tended, as some thought, to reduce in- t dated land values, but to prevent the exploitation by mortgagees of farmers j who were in difficulties through no • fault of their own. The fall in farm- j ing values, he considered, was due to q the drop in the price of butter-fat. a The far-reaching possibilities of the t chilled beef trade were pointed out by this agent. Many dairy farmers were s now changing over to breed beef lor export, and this would undoubtedly tend to ease the butter position. One immediate result was that weancr calves which had been worth from 10s L to 15s for dairying purposes, were now i worth from £2 5s to £2 10s for tho s chilled beef market. This in turn c would have its effect in improving land I values. a “It is not legislation that lias re- ' duced land values at all,” said c another. “It is the price of butter- * fat. The farmer does not worry about :1 Government legislation, and it does not affect his idea of values.” In the I: opinion of this agent land values were 1 about on a par with those of 12 or 18 1 . months ago, although in exceptional c cases farms had been sold at very x cheap prices. He agreed with others that legislation had practically stopped the lending of money on mortgage. A legal firm which put through about £30,000 worth of that business in 1932 [ did only about 1 per cent, of that amount last year.