Revaluation 2023
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 revaluation
- The Land Value: the likely price the land would sell for at the time of the revaluation, and;
- The Value of Improvements: the difference between the Capital Value and Land Value, reflects the value which buildings and improvements add to the bare land
The Rating Value may also include an Annual Value which is the calculation involving the rental value.
Rating Values are just one component in apportioning the rates.
Who determines your Rating Value?
Rating values are prepared either by your council or on behalf of your council by a valuation service provider. Waipa District Council has Quotable Value contracted for the valuation services.
How are Rating Values calculated?
Rating Values are calculated using a complex process called mass-appraisal.
In its simplest sense, valuers consider all relevant property sales which occurred in an area around the date of the last valuation. A market trend is established and applied to similar properties in the area.
A number of assessments of individual properties are completed every year as a result of issued building consents, subdivisions, sales inspections, objections and rate payers requests to update their Rating Value These individual assessments supplement the mass-appraisal process.
The process of calculating Rating Values is independently audited by the Office of the Valuer General and strict quality standards must be met before a revaluation is confirmed.
When are Rating Values calculated?
An important aspect of a Rating Value is its effective date, which is the date of the revaluation.
The Rating Value of a property depicts its value at the effective date and it is usually updated once every 3 years (depending on the Council).
As time passes the Rating Value will diverge from the current market value, until a new revaluation of the district.
If you don't look inside my house, how do you know what it is worth?
We store details on every property which QV and other Valuation Service Providers use.
When Rating Values are calculated, a market trend is established from similar properties which have recently sold and applied to the properties in the group. Similar properties have similar attributes such as land area, floor area, age of building, condition of the property and location.
Properties are inspected throughout the year to make sure their details are updated where changes have occurred (as notified on a building consent).
How can my house have a Rating Value if it wasn't built at the time of 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, this keeps all property values comparable and therefore enables the Council to allocate rates accordingly.
Why is the change in my Rating Value different from the changes in property values I hear in the media?
Most Councils revalue their properties every three years, therefore any change in Rating Value is compared with the last revaluation three years prior.
Most media coverage refers to changes in property values over the last 12 months, therefore different time periods are being reported on which explains the different numbers.
If my house values drops, will my rates go down?
Not necessarily. Your Rating Value is expressed as a percentage of the total value of all properties in order to apportion the rates.
If all Rating Values drop by the same amount your percentage remains the same, and so do your rates. Of course, this is assuming that the expenditure requirements remain the same.
If Council expenditure rises, your rates could rise irrespective of changes in your Rating Value, as the money is apportioned across the district.
What is the difference between a Rating Value and a Current Market Valuation?
Rating Values exist for the purposes of apportioning rates and are determined at the effective date for each Council.
Market Valuations can be requested at any point in time. They involve an extensive interior and exterior inspection, as well as an assessment of the comparable sales so that an accurate depiction of an individual property value can be presented in a comprehensive report.
The valuer will use their expertise and will analyse recent sales data to arrive at a figure which will be current at the date the report issued.
What should I do if I disagree with the Rating Value on my property?
You can object.
If you wish to object to the valuation of your property you will need to lodge a formal objection before Thursday 29 June 2023. The fastest way to find out how to object is to:
• read the back of your rating valuation notice - in the mail from 17 May 2023,
• you can object using this online portal.
If you need more help you can also email rates@waipadc.govt.nz or call us on 0800 WAIPADC (924 724) and ask for the rating team.
