Every three years Quotable Value, our valuation service provider, revalues the property values within the Dunedin City Council rateable area.
This revaluation is required by the Rating Valuations Act 1988 which requires “every Territorial Authority must revise its District Valuation Roll at intervals of not more than three years by revaluing every separate Property within its District to ensure that the Roll represents values current as at the date of the revaluations.”
The revised values will be as at 1 July 2016, and all owners of property will be posted notices of the revised values from Monday 7 November 2016.
|Effective Date of Valuation||01 July 2016|
|Owners Notices Posted||7 November 2016|
|Objection Closing Date||16 December 2016|
The valuations are a snapshot of the market as at 1 July the year of revaluation.
Frequently asked questions
When will my rates be affected by this new valuation?
Rates won’t be affected until 1 July 2017.
What is the connection between rates and valuation?
Council rating valuations are one component in determining what portion of the District’s total rates you will pay. The total rates revenue that is required is set each year through council’s annual planning process, which goes through public consultation. This total is then apportioned across ratepayers using a combination of factors, including the value of your property.
My house has gone up in value; does this mean my rates are going to go up?
Not necessarily. Change in your capital value does not automatically mean that your rates will increase or decrease because of that change.
All rate accounts are made up of rates based on the capital value of a property as well as rates charged as fixed amounts per rate account.
Subject to any owner or occupier objections, these new valuations will form the basis for rating for the 2017/2018 year.
The impact on individual properties may vary. The final impact will depend on the level of general rates required for the 2017/2018 year and the impact of any changes to the rating values for the 2017/2018 year.
How are the valuations calculated?
Rating valuations are calculated using mass appraisal techniques. They are not individual valuations of every property like those undertaken by private valuers. Mass appraisal valuations are used for all rating valuations in New Zealand.
When the value of your property was assessed, the valuer considered a number of factors, including:
- what properties are selling for in your neighbourhood
- type of property: house, town house, factory, shop, etc.
- changes to improvements made since the last valuation
- information about industrial and commercial rental trends obtained from market surveys
Value levels are determined as at 1 July 2016.
What do the terms Land Value, Capital Value and Improvement Value mean?
- Capital value: The assessment of the most likely selling price had the property (including building/s and all other improvements on the land but excluding chattels) been sold on 1 July 2016.
- Land value: The assessment of the probable price that would have been paid for the bare land as at 1 July 2016. It includes development work such as drainage, retaining walls and leveling, but disregards any buildings or other improvements to the property.
- Value of Improvements: This is the difference between the capital value and the land value. It reflects the value of the property’s buildings and other structures
Do these values reflect market value?
Capital value is an estimate of market value (excluding chattels) of the property as at 1 July 2016. Council valuations are used for setting rates and as such, they are not intended for other purposes such as for marketing or for mortgages. We strongly recommend that private registered valuations be obtained for these purposes.
What is the difference between capital value and market value?
Capital value is the probable price that would have been paid for the property at the date of the date of the valuation (1 July 2016). Market value is the probable price that would have been paid for the property at any given time, depending on market factors.
What is the Valuer General’s role?
The Valuer General audits Rating Valuations to ensure the values and processes undertaken meet the standards set out in the Rating Valuations Rules. The Valuer General’s office checks the data and undertakes an audit of the council’s revaluation process to ensure its robustness and that it meets all legal requirements. Only when the Valuer General, is satisfied is approval to publish the proposed Rating Valuations given.
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