LAND VALUATION

Hawke's Bay Herald-Tribune, Volume 81, Issue 40, 10 November 1937, Page 6

LAND VALUATION

Press Association,)

Adoption " of New Method

(Bv Telejrraph--

WELLINGTON, This Day. A question. as to - the basic principle oa which ' valuers ■ employed . by the Yaluation Department operate was asked by Mr H. M. Rushworth (Country Party^Bay. of Islands) of the Minister in charge of the Department, the Hon. F. Langstone, during consideration of the Valuation Department estim'ates in tho House of Bepresentatives last night. "We have had; recently legislative provision - for what is ' apparently an entirely ^new method — eapitalisation of the net income that can be derivcd from the - pr'operty," Mr. Eushwortih said. "Can • the Minister tell me whether the valuations are being made in this way?" * ' The law lay s it • down that . it must be the fair selling value," said the Minister. in reply. Valuation was not an exact- science. . He had heard a lot of people talk i.bout valuation, but so far as they were able to ascertain it to-day under existing conditions it was pretty difficult to find a better system. . "I understand, then," said Mr. Eushworth, "that the valuers are, in effect, operating - on two different principles, In one case they are valuing on the selling value of the land and, in the ad.iustmeht . of mortgages, they are valuing on a eapitalisation of the net income." Mr. Langstone: That is correet. v ' 1