Home' Central District Times : December 13th 2011 Contents 4 CENTRAL DISTRICT TIMES, DECEMBER 13, 2011
Rating Revaluations – how this affects you
Rangitikei District Council ratepayers will soon receive updated Rating Values, more
commonly called Re-Valuations, from Quotable Value (QV).
The 2011 Re-Valuations will be used by Council as the basis for setting rates for the 2012/13 year, as specified by law. However, just
because your Rating Value may show a change in value, it does not necessarily mean that your future rates will proportionately change.
The total amount of rates required does not change as a result of the total value of properties in the district. Rating Values are just one
component, which is used to determine the share of the total rates that individual ratepayers need to pay.
Your Re-Valuation is due to be posted by Quotable Value on 7 December 2011. You may feel that
your valuation is incorrect, and if so, there is something you can do. If you believe your valuation
is wrong, or incorrect, you have until 20 January 2012 to place an objection with QV. Please
be aware that this is over the Christmas/New Year holiday period. You can make an objection
online at www.QV.co.nz, or call 0800 787 284 to request an objection form. Please note, you
must contact Quotable Value to make an objection, not Rangitikei District Council.
LINE Issue 1 December 2011
What does it all mean?
Capital Value – This is the assessment of the
probable price that would have been paid for the
property if it had been for sale at the date of the
latest general revaluation 1 September 2010. This
valuation does not include chattels, dairy company
shares, stock, crops, machinery or trees. The valuation
is deemed to include GST (if any) for residential
property, and exclude GST for other property types.
Land Value – Land Value is the probable
price that would be paid for the bare land as at
the date of valuation. The Land Value includes any
development work, which may have been carried
out, such as draining, excavation, filling, retaining
walls, reclamation, grading, leveling, clearing of
vegetation, fertility build-up or protection from
erosion or flooding.
Value of Improvements – This is the
difference between Capital Value and the Land
Value. It reflects the added value given to the land
by any buildings or other structures present on the
property, and any landscaping that has been done.
Ratepayer – The owner is deemed to be
the ratepayer, unless there is a registered legal
agreement giving another person the right to
occupy the property for a minimum of ten years.
Rating of property –
Rangitikei District Council
ratepayers will be sent your
updated Rating Value shortly.
You may have some questions and concerns over
what affect this could have on your rates, or even
what it means for your property value.
The calculation of Rating Values and how they
impact on rates is complex and varies between
council regions and is only one of the factors. The
process for determining the Rating Value also needs
to be kept in context with how they are used.
Rangitikei District Council
46 High Street, Marton
Private Bag 1102, Marton 4741
Ph. 0800 422 522 / 06 327 0099
Fax. 06 327 6970
What is a Rating Value?
A “Rating Value” is assigned to every property in New Zealand.
It is made up of:
1 The Capital Value; the likely price a property would sell for
at the time of the valuation.
2 The Land Value; the likely price that just the land (minus
buildings) would sell for at the time of the valuation.
3 The Value of Improvements; the difference between the
Capital Value and Land Value. It reflects the value, which
buildings and improvements add to the bare land.
The Rating Value may also include an Annual Value, which is
a calculation involving the rental value.
If you don’t look inside my house, how
do you know what it is worth?
Councils store details on every property in New Zealand,
including yours. Properties with similar attributes such as land
area, floor area, age of building, condition and location are
grouped together. A value trend (determined by relevant sales)
will then be applied to the group in which your property sits.
Some properties are also inspected throughout the year to
make sure details are updated where changes have occurred
(as notified on a building consent).
Why is the change in my Rating Value
different from the value changes reported
in the news?
As most councils re-value properties every three years,
any change in your Rating Value is compared with the last
revaluation three years ago. Most media coverage refers to
changes in property values over the recent past, such as 12
months. Therefore, different time periods are being reported,
resulting in different numbers.
If my house value drops, won’t my rates
This is not always the case. Your Rating Value is expressed as a
percentage of the total value of all properties when your Council
sets your rates. If all Rating Values drop by the same amount,
your percentage remains the same, and so do your rates. Of
course, this assumes your Council’s spending requirements
remain the same. If Council needs more money in their budget,
your rates could rise, regardless of changes to your Rating Value.
The money has to come from somewhere!
What is the difference between a Rating
Value and a current Market Valuation?
Your Rating Value is one factor used to apportion your rates at
an effective date set by your Council. Your Rating Value is
typically updated every three years.
Market Valuations are different. You can request one at any time
from a Registered Valuer; QV has many across NZ. The Registered
Valuer will thoroughly inspect the interior and exterior of your
property. They will also use their local knowledge and analyse
recent sales data. All this information will be presented in a
comprehensive report that will include a market value for your
property, which will be current at the date you request it.
How can my house have a Rating Value if it
wasn’t built at the time of the valuation?
Houses that have been newly built or renovated since the last
valuation receive an updated Rating Value that reflects what
it would have been worth if it existed at the effective date. As
Rating Values are used to apportion rates for up to three years,
all properties remain comparable, which enables the Council to
allocate rates fairly.
How is the index calculated to show the
property values over time?
The values of properties in an area are measured using the
QV House Price Index. This takes into account the ‘Average Sale
Price’ in relation to the ‘Average Capital
Value’ of properties sold, as well as
the volume of sales within that
area. The index provides a
measure of property values
caused by higher sales
volumes in one or more
(e.g. high volumes
of apartment sales or
Frequently Asked Questions
ed to pay.
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