1. What is the valuation for?
The valuations are compiled by statute, under the Rating Valuations Act 1998, mainly as a uniform basis for levying local authority and regional council rates. They also serve as a useful guide for property owners and other interested parties, which is impartial and independently assessed.
2. How often are valuations issued?
Every property in New Zealand must be revalued for rating purposes at least every once 3 years according to the Rating Valuations Act 1998. In Wellington they are assessed every year. QV is contracted by the individual Councils to include each property’s capital value and land value for rating purposes
3. Is the rating value lower that the market value?
While the RV’s are based on market sales they are a ‘snapshot’ of the market at a single point in time. In Whakatane District the effective date of valuation is 1 September 2007.
As real estate generally has tended to fluctuate over time, a rating valuation cannot be expected to reflect the true value for long. This has been particularly evident in the property market recently.
Rating values also do not include chattels, which often can be quite considerable- including carpets, curtains, light fittings and other loose furniture.
4. How do you assess Rating values?
When the value of your property was assessed, the valuers considered a number of factors, including:
· What properties are selling for in your neighbourhood
· The demand to buy or rent property in your neighbourhood
· The type of property: is it as house, townhouse, factory, or shop etc
· Improvements made since the last valuation
· Information in the existing District Valuation Roll
· Information about residential and commercial trends obtained from market surveys
Finally the valuers look at your property from the street, to check that it matched the information in their records and to compare it with similar properties.
The values are then subject to an audit process by the Office of the Valuer General prior to being sent to the property owners.
Do your valuations include GST?
The rating valuation includes GST, if any, for residential property. Generally in most residential transactions the parties are not registered for GST. For other property types GST is excluded.
5. How can you value my property without thoroughly inspecting it?
We conduct a significant amount of roadside inspections throughout the revaluation process. In some areas as many as 90% of properties are inspected.
It is not feasible to undertaken a full inspection on every property in the district nor do we consider it necessary. We already hold individual details about your property, which includes a plan of the main improvements, age, materials, floor area, construction type, other onsite improvements etc. We receive notification of any major change such as subdivisions and building consents issued from the council and carry out roadside inspections to record other changes.
6. Why has LV gone up and VI decreased?
In accordance with the Rating Valuations Act 1998 the Land Value is assessed as if it was vacant.
Assessing your rating valuations involves research into two distinct areas of the real estate market- improved properties and vacant properties, which often behave independently of each other.
In redevelopments areas where there is often a strong market for vacant sites while (older and obsolete) properties are not in demand, this occurrence is not uncommon.
If your Land Value is increasing at a faster rate than your Capital Value then the effect will be a reduction in your Value of Improvements, but remember that the improvements is simply a residual and does not necessarily equate to the replacement cost of the buildings on your land.
7. Will this valuation increase my rates?
Not necessarily. Valuations only affect the incidence of rating and some people will pay less. Usually only properties that increase more than the average will pay higher rates, but that will depend on whether Council decide to keep total rates the same and what differentials (between property/categories) they decide to adopt.
8. Can anyone get the valuation of any property they are interested in?
The valuations are available for public inspection at the council offices for a short period immediately following the revaluation.
Alternatively, you can use our website, see www.qv.co.nz to order up to date property information.
9. What rights do I have if I disagree with your valuation?
These are explained on the reverse side of your owners notice under the various headings:
"What can I object too"
"How do I Object"
" What happens if I lodge an objection"?
In the first instance you can telephone our call centre on 0800 QV Rating
(0800 787 284). When the call centre is unable to resolve your issues they will forward your details to one of the valuers to call you back.