Council rates valuation
- Thread starter savoys
- Start date
Yep. Mind you, this was years ago. I had a block of 4x1s. They were assessed by council as 4x2s (which was next door). Challenged the valuation and got a nice reduction.
We've had the odd bank valuation come in lower than the rates notice. Wasn't very helpful for getting the refinance done, but they did get a rates refund after presenting the council with the valuation.
mine was rated as improved when in fact it was vacant (it use to have a shed before previous owner subdivided, so I jumped thru hoops to prove it was vacant, providing satellite images and declrations etc. I then received the rates adjustment... upwards! they said the change had triggered a reval. You cant win with council.
Thank you for your replies. Ha, i wouldn't be disputing it eaither if it was under, but valuation of $600 when it's really only $500 at best, is a bit much.
PT Bear- oh yes thanks for mentioning the refinance aspect, mine might come in handy at being higher if i was refinancing
Aus prop, oh no, upwards! yes, you can't win
PT Bear- oh yes thanks for mentioning the refinance aspect, mine might come in handy at being higher if i was refinancing
Aus prop, oh no, upwards!
yes, you can't win
Big brother thanks you for the tip off and for providing your IP address to contact you.
Yes we challenged one of our council rates. It was valued by council at 180k - but we couldn't even sell it at 160k at the time - that was main reason we challenged. Council had someone come in and value and it came in as 150k. The land component stayed the same but the house was reduced to 7.5k.
However, it does go the other way too. We were paying rates on a council valuation 150k below market on our PPOR. The council approved the extension and associated works but didn't update their rates. I didn't ring them for a reassessment.
However, it does go the other way too. We were paying rates on a council valuation 150k below market on our PPOR. The council approved the extension and associated works but didn't update their rates. I didn't ring them for a reassessment.
Are you meaning the unimproved land value that is used (averaged over three years) to work the rates on? This comes from the OSR doesn't it? Nothing to do with Council.
And it is for "unimproved" value so adding an extension to your house should not affect the unimproved land value.
Or am I having some sort of senior moment?
And it is for "unimproved" value so adding an extension to your house should not affect the unimproved land value.
Or am I having some sort of senior moment?
Every state is different.
Some states only use land value to calculate rates while Victoria use a capital improved value. (house and land). Western Australia use an estimated gross rental value.
Also some councils charge a higher figure for vacant land. That's I your rates could increase if you demolish your house. It's apparently to promote development.
Some states only use land value to calculate rates while Victoria use a capital improved value. (house and land). Western Australia use an estimated gross rental value.
Also some councils charge a higher figure for vacant land. That's I your rates could increase if you demolish your house. It's apparently to promote development.
These days in Victoria the council valuations (CIV) are pretty much on the spot when it comes to sale prices. I've even seen a few where the sale price was 10% below CIV (in Glen Waverley). Went to an auction today where the agent wanted $950,000 for a house with CIV of only $740,000. Needless to say it didn't sell.
We just got a rates notice val $593k.....
We bought this property 3 months back for $435k!!
I think I will follow a savoys lead and ring the council tommorrow to try get a reval.
OR....is a council rates valuation handy ammo for a bank reval?
Or will the bank not even consider it?
Nath
The connection between CIV & actual market price is academic & tenuous at best. In most of my time, all CIV have been lower than "market" price. And even revised CIV that have been issued with recent (ie last month) council notices are still in the same boat.
I have had a prospective purchase which had the opposite ie purchase price less than CIV by 15%. But that simply is a 'to do' item with the council if and when it would have been purchased.
As for using a council valuation, I can hear the smug rejection by the bank valuer of the CIV. But you never know until you try. Good luck
I have had a prospective purchase which had the opposite ie purchase price less than CIV by 15%. But that simply is a 'to do' item with the council if and when it would have been purchased.
As for using a council valuation, I can hear the smug rejection by the bank valuer of the CIV. But you never know until you try. Good luck
Not sure about right now, but for a long time council valuations were well under actual sale prices, particularly in the better suburbs. Agents would tell you to disregard them as you'd never buy anything at council val.
In low to average suburbs they were closer but generally sale prices were still higher.
In cheaper areas the purchase of a property within maybe $5-10k of council valuation was probably a good but not exceptional deal. If during this time 'below council value' was your sole purchasing criteria (along with some other basic checks) you'd probably have done OK.
However more recently council valuations have caught up and even exceeded what I consider fair value.
Some rough actual numbers from a 3br property I'm familiar with in Melbourne's west:
Purchase date: early 2011
CIV: $250k
Purchase price: $255k
Estimated value after $5k cosmetic renovation (based on comparable sales): $280 - 285k
CIV 2012: $290k
Estimated value: $250 - 270k (due to price drop)
I think this is because council vals seem to be lagging indicators. Late during a boom they can be way too low. While a bit after a boom they can be a bit too high - the council puts them up during a boom but prices might have come off a bit.
So if one was to pay at whichever is lower - council val or comparable sales - this could minimise the risk of paying too much. In other words they could be a useful yardstick - paying way over council val may be poor value and/or poor timing.
In low to average suburbs they were closer but generally sale prices were still higher.
In cheaper areas the purchase of a property within maybe $5-10k of council valuation was probably a good but not exceptional deal. If during this time 'below council value' was your sole purchasing criteria (along with some other basic checks) you'd probably have done OK.
However more recently council valuations have caught up and even exceeded what I consider fair value.
Some rough actual numbers from a 3br property I'm familiar with in Melbourne's west:
Purchase date: early 2011
CIV: $250k
Purchase price: $255k
Estimated value after $5k cosmetic renovation (based on comparable sales): $280 - 285k
CIV 2012: $290k
Estimated value: $250 - 270k (due to price drop)
I think this is because council vals seem to be lagging indicators. Late during a boom they can be way too low. While a bit after a boom they can be a bit too high - the council puts them up during a boom but prices might have come off a bit.
So if one was to pay at whichever is lower - council val or comparable sales - this could minimise the risk of paying too much. In other words they could be a useful yardstick - paying way over council val may be poor value and/or poor timing.
