The real value of a property valuation
The most recent property valuations are out and have been causing a fair amount of conversation around the Hurunui District, and nationwide.
By law, local authorities are required to update the values at least every three years. Quotable Value New Zealand is contracted by Council to maintain the rating valuations in the District and carry out the revaluation. The revaluation process is audited by the Office of the Valuer General before new valuations are posted to owners. The 2022 valuation will be used to set rates from the 2023/24 year.
Rating valuations are based on market values, a snapshot of the market at a fixed point in time.
Jason Beck, Chief Financial Officer at Hurunui District Council, is aware of the misconceptions around what a property valuation means to the ratepayer.
He has identified the common misunderstanding that a revaluation will mean increased rates but assures this is not the case.
He explained that generally, the ratepayers whose property value increased less than the average increase in rating valuation across the District will pay less rates, compared to those whose property value has increased by more than the average, who subsequently will pay more because of the revaluation.
“For most ratepayers these changes are not significant unless their value change is significantly different than the average change.”
Beck clarified that rates are driven up by the increasing costs to Councils for providing services such as libraries, parks, emergency management and street cleaning, and providing water and roads as part of key infrastructure.
“A valuation allows us to make sure the rates paid are accurate and shared fairly across the District.”
In other words, the rates amount on a particular property is affected by the total amount of rates revenue required to fund the services and programmes approved by the Council in the annual budget, and the number of new properties created through growth.
Some clarification around land value and capital value also helps to understand the revaluation process.
Land value is the market value of the unimproved land, and capital value is the market value of the improved land, including any dwellings or buildings. Capital value does not consider emotional factors like sea views, waterfront access and building appeal, which can at sale time make a big difference to an asking price.
“The improvement value is merely the difference between capital value and land value and is not related to the construction or installation cost of any improvements.”
Beck urged property owners to keep their record up to date at Council, with any renovations or improvements.
If property owners are unhappy with their revaluation, they have an opportunity to object. Property owners have a statutory right to object to their rating valuation following a revaluation review. They can be lodged online on the Quotable Value website, or in writing.
“The Council is committed to having its valuation rolls as accurate as possible and encourages property owners to use this new initiative to check records and let us know about new information or correct any errors.”
The general revaluation reviews rating values for the whole district are at three-yearly intervals. The next rating valuation will be held in 2025, then in 2028.
Resources:
Link to webpage: https://www.hurunui.govt.nz/property-rates/rates-c...
What is a rating value? (Video credit: www.qv.co.nz)
Lodging an objection with Quotable Value Ltd:
Website - https://qv.co.nz/services/
Write - Quotable Value Ltd - Business Support, Private Bag 39-818, Wellington Mail Centre, Lower Hutt 5045.
Please note - Information on the objection process and time frames for objection will be advised with valuation review notices.
Updating property details with HDC:
Update My Property (https://updatemyproperty.co.nz/App/MyHome/MyHome.htm). You can also upload photographs of recent improvements made. Information is verified by Quotable Value prior to being accepted into Council records.
Image credit: www.qv.co.nz
