Understand your property

Rating Valuation

A rating valuation is based on the likely selling price (market value) of a property (excluding chattels) at a particular point in time (the effective date) of your local council's last general rating property valuation.

 

Rating valuations are carried out on all properties in New Zealand, usually once every three years, and are used by local councils to set rates.

 

Revaluations are carried out either by your local council or on behalf of them by a valuation service provider (VSP) such as Quotable Value (QV). Rating valuations are just one of a number of factors councils use to allocate rates.

 

The updated rating value is sent to property owners on an Owners Notice once and area has had a revaluation completed.

 

A property value is made up of three components

  • Capital Value (CV) - this is what your property is likely to have sold for at the date of your local council's last general revaluation, excluding chattels. The CV is also know as Government Valuation (GV) or Rating Valuation (RV)
  • Land Value (LV) - the most likely selling price of the bare land at the date of your local council's last general revaluation.
  • Improvement Value (IV) - this is just the difference between the land value and capital value. It is important to note here it does not mean the replacement cost of buildings and services on a property.

 

Council revaluations

See which councils are having a revaluation for rating purposes in 2017.

How is a rating value calculated?

Assessing rating values is a service QV performs for local councils around NZ. Rating values are calculated by QV valuers who analyse recent sales and compare and contrast similar properties using technology and experience to determine a property’s updated rating value. QV valuers may also inspect properties sold recently and those where building consents show work has recently been completed. Because of the vast number of properties in NZ it’s not possible to view every property in person, (although many urban properties are looked at externally to check the accuracy of the proposed value level). You can research local area sales and other property information by going to QV.co.nz or by using the QV homeguide app.

What is the difference between a capital value and a market value?

Capital Values (CV) are for rating purposes. The CV is the likely price you could sell a property for at the date of your local council’s last general revaluation (this differs for each council across NZ). Market Valuations are different to capital valuations or rating valuations. You can request a current market property valuation at any time from a QV Registered Property Valuer. The QV Property Valuer will thoroughly inspect the interior and exterior of your property. They will also use their local knowledge and analyse recent sales data in the area. All this information will be presented in a comprehensive report that will include a market value for your property, which will be current at the date you request it.

I've renovated my property but my rating value is still the same...

If you’ve refurbished or renovated your property, but the work hasn’t required a building consent e.g. a new kitchen, bathroom, deck or something else, we or the council won’t know about those changes and your rating value may not have been amended to reflect this. In these cases you need to contact QV or your local council to have these reviewed.

What do I do if I disagree with my rating valuation?

When your property's rating value is reviewed there is a period during the year of the revaluation, that you can submit an objection if you disagree with the new rating valuation.

Before submitting an objection it's important that you find out more about the Objections process.

Give QV a call on 0800 787 284 and we can dicuss your options further or an Urgent Rating Value Review of your property may be the solution.

More about rating values

If you have any questions email us at ratingsupport@qv.co.nz or call 0800 QV Rating (0800 787 284)