What do Capital Value, Land Value and Improvement Value mean?
Capital value is the likely price your property would sell for at the time of the valuation (1 July 2015). This includes buildings and other improvements (e.g. sheds), but excludes chattels (like carpet, curtains, appliances etc). Your rating capital value is usually 5-15% lower than a market valuation.
Land Value is the likely price that just the land (minus buildings) would sell for at the time of the valuation. It includes development work on your land such as drainage, retaining walls, levelling etc.
Improvement Value is the difference between the Capital Value and the Land Value. It reflects the value that the buildings and improvements (like landscaping) add to the bare land.
Who calculates your rating value?
Your rating value is prepared on behalf of Council by a independent valuation service provider. MPDC uses LandMass - one of several valuation service providers in New Zealand.
How is your rating value calculated?
LandMass analyse all property sales that occurred in your area to identify market trends, then apply those trends to similar properties (e.g. residential values are based on residential sales, commercial values are based commercial sales etc). They also assess a number of individual properties each year (e.g. due to building consents); the information from these assessments help with the mass-appraisal process. The entire process is also independently audited by the Valuer General.
If you don't look inside my house, how do you know what it is worth?
Councils store details on every property in New Zealand, including yours. Properties with similar attributes such as land area, and age of building, condition and location are grouped together. A value trend (determined by relevant sales) will then be applied to the group in which your property sits. A significant number of internal and roadside inspections are undertaken prior to the revaluation. LandMass also know and understand our local market conditions.
What are the trends from the latest revaluations?
The actual change in valuation will vary for every property (ranging anywhere from a 17% decrease in value to a 60% increase), however, the overall trends were::
- An average increase for residential properties of 7%
- An average increase for lifestyle properties of 13%
- An average increase for commercial properties of 9%
- An average increase for dairy properties of 35%
- An average increase for industrial properties of 3%
- The total value of properties in the district has increased from $10 billion to $12 billion.
How do revaluations effect my rates?
Council collects $12.7 million dollars of general rates based on the capital value of properties – this is the only portion of your rates affected by the revaluations e.g. the Uniform Annual General Charge and targeted rates for services like rubbish collection or water are not affected.
The amount of money we collect doesn’t change, just how we “slice the pie” changes to reflect the changes in market values. The most significant change was in the dairy sector, with an average increase of 35% - but this does not mean a 35% increase in rates for dairy properties, it just means that dairy properties will pay for a slightly larger portion of the $12.7 million (they previously paid for 47% of the total general rates but the increase in values means this shifts to 52%). Because how we slice the pie is changing, some properties may even see a decrease in their capital value general rates, even if their capital value increased.
If you want to know exactly how your valuation would affect your rates give us a call on 0800 746 467.
When does the new valuation come in to effect?
The valuation is a valuation of your property as of 1 July 2015. This will be updated in all of Council’s systems and will be available in the Rating Information Database for anyone (e.g. ratepayers, real estate agents etc) to see; however, it won’t affect your rates until 1 July 2016.
How often are revaluations done?
General Revaluations are completed every three years to ensure Council has up-to-date values for all properties in the district.
Valuation notices are also issued between revaluations when changes are made to properties (e.g. if land is subdivided, or a building is built or demolished). If a valuation is issued between general valuations, the values are back-dated to the date of the last general revaluation (e.g. if a new valuation is done next year, the valuation date will still be 1 July 2015); this ensures Council and ratepayers are comparing apples with apples.
How does Council know when changes have been made to my property?
The Council has copies of all survey plans and building consents. If you make changes to your property that are likely to affect its value, but that are not covered by either of the above processes, please advise us so that we can update our records and amend the property’s value as necessary.
What if I disagree with the valuation?
You were able to make an objection to your rating valuation until 5pm on Friday 27 November 2015.
What happens if I lodge an objection?
A valuer will contact you, and may arrange an appointment to re-inspect your property to verify and/or update the property record. We’ll inform you of the results in writing. If you’re still not satisfied, you can seek to have your objection heard by the Land Valuation Tribunal, but this will cost you a hearing fee. At the Land Valuation Tribunal hearing, you will be required to state your estimate of the value and provide evidence to support your claim. This evidence would normally be information about sales of similar properties, which occurred at, or near, the date of the valuation being objected to. The Land Valuation Tribunal will make a decision based on the information presented.
Privacy Act 1993
The contents of your valuation notice are contained within the public register known as the District Valuation Roll, which is available for inspection by the public at Council Offices free of charge. You may have access to any information held about you and you may ask for any corrections to be made.