The Whanganui District Rating Revaluation for 2016 is now confirmed and property owners will soon receive a 2016 Notice of Rating Valuation with an updated rating value for their property.
The rating valuations for 21,400 properties are prepared on behalf of the Whanganui District Council by Quotable Value Ltd (QV).
Rating valuations are fit for purpose valuations carried out on all properties in New Zealand, usually once every three years to help local councils set rates for the following three year period. Rating values are just one of a number of factors councils use to allocate rates.
The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which is 1 September 2016, but does not include chattels. However, council rates will not be based on the new 2016 rating valuations until 1 July 2017.
QV ratingvalue Team Leader, Simon Willocks said, “The Whanganui District’s overall capital value has increased 6.0% to $6.8 billion since the last general revaluation in 2013.”
“Residential property values have risen on average by 5.0% over the past three years. The market had been on a downward trend since the previous peak of 2007 right up until mid-2014 but since then values have been rising at a moderate pace, with the strongest growth occurring over the past year.”
“The location and condition of the dwelling has an influence the value movement, with well-presented properties generally seeing higher value growth than dwellings requiring significant maintenance.”
“The values of lifestyle properties and well-located farms with versatile soils have remained relatively static over the past three years, compared with hill country and Manuka blocks which have seen significant value increases, as buyers have been competing for limited listings in this sector of the market.”
“The commercial and industrial sector changes are property specific and reflect the market dynamics for location and quality of building.”
Whanganui Mayor Hamish McDouall says the increase of capital value on residential properties is a sign that the district is starting to prosper.
“News that capital values for residential properties in Whanganui have increased over the last three years will come as no surprise to those who have been watching growth in other areas of our district, such as in house sales, tourism and business.
“After seven static years in the housing market, it’s very pleasing to see that we are seeing strong competition for residential property - this is a great sign for Whanganui.”
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, (in this case 1 September 2016) they are not designed to be used as a current market valuation of your property. Current market valuations require an individual inspection of a property and full written report by a Registered Valuer and can be provided to banks for use in raising finance or for other legal purposes.
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 change 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 12 December 2016. If you disagree with your rating value you have the right to object. The objection close-off date is 27 January 2017. You can object online at www.ratingvalues.co.nz or call 0800 787 284 to request an objection form.