My property has gone up 15 per cent in value, does this mean my rates will go up 15 per cent?
No. The new 2016 valuations change how Council’s total rates requirement is shared out between properties. If your property’s value increases by more than average then your rates bill will go up by more than average. If your property’s value increases by less than average your rates bill will go up by less than average. How much the Council needs in rates, and how much you will actually pay in rates, won’t be known until the Council sets its budget through the Annual Plan in June 2017.
If you don't look inside a house, how do you know what it is worth?
Rating Valuations are a fit for purpose method used to help councils set rates fairly. Your value is based on actual market sales prices for similar properties in your area at the time of the revaluation (1 August 2016). Councils store details on every property in New Zealand such area, floor area, age of building, condition and location. Properties with similar attributes are grouped together. QV then uses relevant sales to determine a value trend and apply it to the different groups of properties. Some properties are also inspected throughout the year to make sure details are updated where changes have occurred. QV is notified about changes as part of the building consent process.
What if someone has done renovations without the need for a building consent?
There is a lot of work that can be done to a property without a building consent, such as modernising a kitchen or bathroom, reroofing and landscaping etc. Generally, this type of work will increase the value. Owners should tell QV about the work to ensure it is captured in the new or updated rating valuation.
What information is used for commercial rating values?
Market estimates are used for commercial industrial valuations, not the actual lease details for a property. QV requires information from property owners to help establish rental levels and yields so it sends out questionnaires to properties that are known to have been leased or sold to help establish 'fair market value’. The more information QV receives, the better. Legislation requires owners to give QV this information. Any known damage to buildings is also considered when assessing the value of commercial property.
How can a house have a Rating Value if it was not built at the time of the valuation?
The new 2016 rating values will form the basis of the Council’s rates charges from 1 July 2017 until 30 June 2020. All properties built or renovated after 1 August 2016 must be valued at whatever market price they would have sold for had they existed in their current form on 1 August 2016. This ensures that everyone’s rates are charged on the same basis, without anyone being charged more or less just because of subsequent property market movements.