The Tararua District Rating Values for 2017 are now confirmed and property owners will have received a 2017 Notice of Rating Valuation with an updated rating value for their property in December 2017.
The new rating valuations have been prepared for 10,360 properties on behalf of the Tararua District Council by Quotable Value (QV).
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 2017. 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 person(s)/company entered in Council’s rating information database are the ratepayer(s).
Rating valuations are carried out on all properties in New Zealand, usually once every three years, to specifically help local councils determine the allocation of rates for the following three year period.
Rating valuers consider relevant property sales from your area around the time of the valuation. A market trend is established and applied to similar properties. The mass-appraisal process is supported with a proportion of valuation assessments of individual properties every year as a result of building consents which were issued, subdivisions, sales inspections, objections and ratepayer requests to update Rating Values.
The process for calculating Rating Values is then independently audited by the Office of the Valuer General, a government department. Stringent quality standards need to be met before a revaluation is confirmed.
The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 September 2017, but do not include chattels.
If you believe that your Rating Value is not accurate, you should object. You can object online at www.QV.co.nz or call 0800 787 284 to request an objection form. The objection close date for the Tararua District Council is 2 February 2018.
You can also get in touch with the Council team by emailing email@example.com or calling 06 374 4080 or 06 376 0110.
Frequently Asked Questions
What is a Rating Value?
A “Rating Value” is assigned to every property in New Zealand. It is made up of:
The Capital Value; the likely price a property would sell for at the time of the valuation.
The Land Value; the likely price that just the land (minus buildings) would sell for at the time of the valuation.
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.
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 go down?
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 without fluctuations caused by higher sales volumes in one or more property sectors (e.g. high volumes of apartment sales or investment properties).