3. other, have in regard to the nonsubdivision of the lots, (which has also been complained of as a disadvantage), will have vanished.
I have hitherto considered the sum paid annually to Government by the lessee of each parcel of ground termed rent; but it may be doubted whether it is right to call it by such a name. Land does not necessarily produce any rent, and until its productiveness or unproductiveness, or that of land similar in all respects, has been tested, it cannot be certainly said that it will afford rent. Rent is the surplus produced above the cost of production.
If a person borrows a piece of land belonging to another, builds a house costing £1000, the market rate of interest being five per cent, and the cost of repairs four per cent; and finds a tenant who will pay £120 per year for his house, it is obvious that he cannot afford to pay any ground-rent at all to the owner of the land; though he can afford to pay all that he gets beyond this sum.
But it has been shown that when lands were bought here, no judgment could have been formed as to whether any lot would or would not afford permanent ground-rent; in fact, it turned out that lots for which the highest rentals were bid were not in some instances the most valuable. It was the eagerness of the demand, caused by the circumstances above described, that raised the prices.
Had everyone been permitted to build where he liked, and a rent been afterwards assessed on the lands, the proportional payments would now be very different from what they are. There is a question whether the total sum accruing to Government from rents paid in their present unequal proportions is much less than the sum of the annual rents of all the properties.
Page 19
406
AVCR(85)72
18.
3
other, have in
regard to the nonsubdivision of
the lots, (which also been complained of as disadvantage), will have vanished t
a
I have hitherto considered the sum
as ren
penh
paid annually to Govenment by the lesser of each parcel of ground termed; but it may be doubted whether it
has
for
so it is
ang right to such a namò. Land does
rents, and until
not meccesarily produced any its productiveness or unproductiveness, or that of land similar in all respects, has been "tested, it cannot be certainly said that it will afford pont. Rent is the susplus produced abwe the cock of production. If a borrows piece of land belonging to
Quaid on a
another, build a house
pounds,
the market
costing
0100)
thousand?
ket rate of interest being
sight and the cost of repairs four por cont;
and
him
caunch
On 820)
pounds a
find a tenant who will
than
w bue
hundred and
pay
twenty
year for his hones, it is obvious
406 19
that he cannot afford to pay any ground-rent
at all to the owner
Caw
of the land; though be
afford to pay all that he gets beyond
this fum. But it has been shown that wher
lands here
AVCR OI
thestimate could
bought, no jush
have been formed as to whether
Ed would or would not a
ground
any lot of afford permanent .
rent; in fach it turned out that lots for which the highest pentals wow bid,
ivers)
in Lome instances the beast valuables. It
dvas
the greataces of the demand, caused
above described, that raised
T
Hard encry
the pries.
as
ritted to build where
beens pornsite
he liked, and a pent been afterwards
assessed on the lands, the proportional
payments would now be from what they a
determining
ard. There
very different
of
are ao OU COAS
whether the total sum accncing
in
from acut's paids to Government six their present unequal proportions
is nacio
less than the
sum of the sixtural ponts of all the compied
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