Council valuation for rates

[WebBoard]

From: Anonymous


Re The valuation that appears on Council rates notices :
1-Site value.
2-Capital improved value.

Is their valuation of your property
equal to #1 & #2 added together or just
#2 ?

Regards
Peter.

 

[GoAnna!]

Reply: 1
From: GoAnna !


Hi Peter

In Victoria CIV is the total valuation of your property (land plus improvements).

Site value is purely the land value.

BTW which state are you referring to?

GoAnna !
"The real measure of your wealth is how much you'd be worth if you lost all your money."

 

[WebBoard]

Reply: 1.1
From: Anonymous


Hi Anna,

Thanks for your reply.

So to use an example :

1- The CIV is $170K
2- The land value is 80K

So the question is what is the council
valuation of this property?
1- 170K + 80K = 250K ?
or
2- 170K ?

And the next question, is just how close
to the real valuation are the council valuations. The reason I ask, is the last property I purchased, the bank was happy to lend against the council valuation and didn't do any other valuation.
Regards
Peter

 

[GoAnna!]

Reply: 1.1.1
From: GoAnna !


Hi Peter

My response is based on Victoria only.

>1- The CIV is $170K
>2- The land value is 80K
>
>So the question is what is the
>council
>valuation of this property?
>1- 170K + 80K = 250K ?
>or
>2- 170K ?

The valuation is $170K (CIV)

How close the valuation is to the current market value will depend upon timing and the council area you are in. Some revalue every year, some far less often. The date of the valuation will appear on your rates notice and is likely to be at least 6 months old. As I am sure you are aware they do not look inside each individual property so they will presume that your property shares the characteristics of similar homes. If your home has been recently upgraded, extended etc this is unlikely to be reflected in the council valuation. Overall the values tend to be conservative as otherwise councils receive far too many complaints and requests for revaluations.

I would imagine that if you agree to a loan based on the rates valuation that you have shortchanged yourself. I would advise checking recent sales of similar properties and speaking to local real estate agents. You may want to arrange a sworn valuation yourself with a valuer approved by the bank and if it is higher ask the bank to use this valuation instead.

Let us know how you go )

GoAnna !
"The real measure of your wealth is how much you'd be worth if you lost all your money."

 

[WebBoard]

Reply: 1.1.1.1
From: James Spry


One thing to keep in mind is that some councils will drop the valuation then increase the rate at which they charge you rates (no pun intended) only to increase the valuation at some later time. It's a sneaky way of increasing their income without being obvious. But that's no reason to not buy a property! Just be wary of anyone with a vested interest.

Jim Jim the monkey boy