How are the valuations calculated?
Rating valuations are calculated using mass appraisal techniques. Mass appraisal valuations are used for all rating valuations in New Zealand and globally. When the value of your property is assessed the factors considered include the following:
- What properties are selling and renting for in your neighbourhood
- The type of property: house, flat, dairy farm, shop, etc
- Information in the District Valuation Roll, which contains the valuation details of individual properties in the Invercargill area
- Information about industrial and commercial rental trends obtained from market surveys
- Changes that have been made to your property since the last revaluation (2017). The 2020 revaluation value levels were determined as at 1 September 2020.
What do Capital Value, Land Value and Value of Improvements mean?
- Capital value: The assessment of the most likely selling price had the property been sold on 1 September 2020.
- Land value: The assessment of the probable price that would have been paid for the bare land as at 1 September 2020. It includes development work such as drainage, retaining walls and leveling, but disregards any buildings or other improvements to the property.
- Improvement value: Improvements add value to the land i.e. buildings, drives, paths, fencing etc. Improvement value is the difference between capital value and land value.
Do these values reflect market value?
Capital value is an estimate of market value of the property as at 1 September 2020. Council valuations are used for setting rates and as such, they are not intended for other purposes such as for marketing or for mortgages.
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 valuation (1 September 2020) excluding chattels. Market value is the probable price that would have been paid for the property at any given date, depending on market factors.
What is QV’s role?
QV has been contracted by the Council to conduct the revaluation and QV works closely with LINZ regarding methodology and revaluation results. QV will also handle objections from ratepayers who dispute their valuations.
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. The Valuer General’s approval is required before the values can be published and used for rating purposes.
I have received a questionnaire in relation to the rental of my building – why does Council need this information?
For rating valuation purposes, potential rental income of a property is a factor that valuers need to consider when valuing an industrial or commercial properties as these properties often sell on the basis of rental return relative to sale price. Rental information is not readily available in the public domain, hence this request is made under the provisions of Section 45 of the Rating Valuations Act 1998. This information will be treated as confidential except as required in a Court of Law. Requests were sent to owners where our records indicate the building might be rented. Any information provided will assist us to produce accurate rating valuations.
Can I object to the valuation?
Yes, you have six weeks to object beginning from the date valuations were publicly notified.
You can make an objection online, or by personal letter and posting to QV. Whichever way you make an objection; you’ll need to include these details:
- The valuation reference number
- The address of the property you’re objecting about
- A daytime contact telephone number
- Your postal address
Your reason for objecting
- An estimate of what you believe is the true value of the property
NOTE: Use this link to make an online objection.
When and how will rates be affected?
The 2019-2020 rates are based on the 2017 revaluation with the effective date of 1 July 2017. The new 2020 values will be advised in November 2020 and will form the basis for rating for the 2021-2022 year.
What is the connection between rates and valuation?
Council rating valuations are one component in determining what portion of the city’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. The amount of rates that you pay will depend on a number of factors based on the Council’s rating policy.
Related QV website links