Understanding your Rate revaluations

Published: 14-Oct-2016

Overall Waimakariri District value increases 9.6% since 2013 

If you own a property in Waimakariri District, shortly you’ll be sent a letter with your property’s updated rating value. 

Your rating value reflects the value of your property (not including chattels i.e. movable personal items you can take away from your house, like curtains and appliances).  Rating values are one of the factors councils use to assign your rates.  

The effective date of your rating value is the date that your home’s rating value was re-assessed.  Your council rates will not be assessed on the new values until 1 July 2017. 

Rating values were prepared this year on behalf of the Waimakariri District Council by Quotable Value (QV).  A mass-appraisal process is used where similar and relevant property sales from Waimakariri around the time of the revaluation (except mortgagee sales) are considered.   A market trend is established and applied to similar properties. 

The mass-appraisal process is supported by some valuation assessments of individual properties every year as a result of building consents, subdivisions, sales inspections, objections and ratepayer requests to update rating values.

It’s important to remember that while a rating valuation should reflect the likely price a property would sell for at the effective date of the rating revaluation (for your city/town/district) it does not include chattels i.e. movable personal items such as curtains and appliances). Also they are not designed to be used as a current market valuation which can be provided to banks for use in raising finance or for other legal purposes. Current market valuations require an individual inspection of a property and full written report by a Registered Valuer. 

Following that, rating values are independently audited by the Office of the Valuer General. Rigorous quality standards need to be met before a revaluation is confirmed. 

Luke Van Den Broek, Southern Rating Manager at QV, said; “The overall capital value of Waimakariri District is now $15.5 billion which is a 9.60% increase from 2013”. 

“The residential property market has experienced a moderate amount of growth over the last three years since the previous district revaluation with residential capital values increasing 6.0% since the last revaluation.”

“The commercial and industrial sectors have experienced strong growth since 2013 (an increase of 21% in capital value) which has been largely driven by significant population growth and construction”. 

“Overall rural values have increased 17% since 2013. Rural property sales from early 2014 to early 2015 were strong, with pastoral and arable prices hitting new records. However in the past eighteen months with the traditional winter season slowdown and a reduction in international dairy commodity prices from historical highs, we are seeing a reduction in market activity.”

In the Waimakariri District, rating values are updated once every three years. When viewing the Waimakariri property value index over time, you can see the change in property values that has occurred up until mid-2016. 

Residential-Propertu-Values

 

If your new rating value has changed that doesn’t necessarily mean that your rates will change, it depends on your council’s requirements and how rating values have changed over the rest of the area.

If all rating values drop by the same amount, your percentage remains the same, and so do your rates, but this does depend on your council’s funding requirements.

Your new rating value will be posted to you after 17 October. If you disagree with your rating value you have the right to object. The objection close-off date is 25 November 2016. You can object online at www.ratingvalues.co.nz or call 0800 787 284 to request an objection form.