QVratingvalue will be contracted as a rating valuation services provider to provide a General Revaluation for 21 local councils this year including Carterton, Clutha, Invercargill, Kaipara, Kapiti Coast, MacKenzie, Marlborough, Masterton, Napier, Queenstown Lakes, Rangitikei, Ruapehu, South Wairarapa, Stratford, Tararua, Tasman, Thames Coromandel, Timaru, Waikato, Waitaki and Westland.
This means every property in these regions will get a new rating value (RV). These are a specific type of valuation which are set usually once every three years as one of a number of factors used to assist local councils in setting rates and while your RV is not designed to reflect market value at any time other than when it is set it is worth making sure that you keep it up-to-date and here’s why.
While some may believe it’s best to keep their RV as low as possible to pay lower rates, a relatively small saving on their rates bill may be costing them in other ways. This is because increasingly banks and lending institutions are commonly utilising automated valuation reports and online estimates of your property’s value are also available to the public such as when you download the QVhomeguide app on your mobile or run an E-valuer on qv.co.nz.
If a homeowner has spent thousands of dollars of improving a property but this work did not require a building consent and they do not advise council or their rating value service provider, such as QVratingvalue, then it’s most likely that this added value is not going to be reflected in the property’s RV, unless that property has been sold in the meantime and a rating valuer has inspected this sale.
When council issues a building consent the rating value services providers such as QVratingvalue receive notice of building consents and these are inspected and the assessed added value of the new building work or alterations is included in an updated rating valuation once the work is complete. But in the case of work that doesn’t require a building consent for example a $30,000 upgrade to a bathroom or kitchen, the added value won’t be added to your RV unless council or your rating value services provider are advised of the work you have carried out.
This may mean your RV is too low and your property could then be undervalued in online automated valuation estimate which is usually calculated by an average percentage of sales prices to RV in your area.
This might mean your bank may think you are a higher risk than you really are in terms of lending due to your debt to equity ratio being higher than it should be.
If you are selling, this may lead a potential buyer to say “you are asking too much for your property” as your asking price is a much higher percentage above RV than the average sale in your suburb. They may also say you are asking more than the estimate I am seeing on my device or online of what your property is worth.
So if you want to update your property details you can contact QV on 0800 787 284 and send through details of the improvements you have made and the next time a rating valuer is in their area they will come and visit your property.
If you need this done urgently or in a more-timely manner then you can apply for a Section 16 review of your rating valuation under the Rating Valuation Act 1998. You can make an application here, and this will be done promptly for a fee; usually an inspection will be carried out within five working days of your request.
If there is a general rating revaluation being carried out year, you will also have the opportunity to object to your new RV if you believe it doesn’t reflect the market value of your property less chattels as at the set date. But it’s worth updating any information on your property before then.
For more information visit www.ratingvalues.co.nz.