Do you pay rates on vacant land?

[TMNT]

sorry for the dumb question

have purchased a block of land for $15k,

was thinking about building something, but decided to hold on to it

got a rates notice for $2600,

do you pay rates for vacant blocks of land, Was under the impression you dont,

if the rates are valid, I certainly will be selling the block of land

 

[luckyone]

Yes you do. But why are they so high if the block is only worth $15K? That's seems highly out of proportion.

 

[TMNT]

good point, I thought it might have been a fixed fee for vacant land, or a % or fixed fee with whichever is higher type of arrangement,

I did negotiate it down from 25k down to 15k,

is there a rough % or formula?

 

[Ausprop]

there will be council rates along with water rates

 

[luckyone]

Which state is the block in? I'm pretty sure you can look up the rates on each states revenue office site.

 

[TMNT]

there will be council rates along with water rates

its in NSW,

I paid the last lot of water rates, only $30

 

[Player]

Yes you do. But why are they so high if the block is only worth $15K? That's seems highly out of proportion.

Probably regional/rural. Smaller council populations often have disproportianately higher council rates charges compared to larger cities.

TMNT, what's the UCV (unimproved cap value) attributed to the land on your council rates notice?

 

[Peter_Tersteeg]

As Player suggests, rates are not proportional.

Essentially the local council figures out how much money they need, then everyone pays their share depending on what the valuer of their property is within the pool of rateable properties. Small towns still have a lot of road and other facilities to maintain, often it's more expensive than larger cities due to the geographic range of the facilities.

The pool of people available to pay for these costs is smaller, so country areas have substantially higher rates than high density areas.

 

[TMNT]

Probably regional/rural. Smaller council populations often have disproportianately higher council rates charges compared to larger cities.

TMNT, what's the UCV (unimproved cap value) attributed to the land on your council rates notice?

just called up the council, council land value is $68k,
im thinking of selling it to be honest

 

[Ausprop]

just called up the council, council land value is $68k,
im thinking of selling it to be honest

offer it to the council at 30% less than their own valuation

 

[TMNT]

offer it to the council at 30% less than their own valuation

haha,

what does this mean in laymans terms?

that in a couple of years unless the local market goes south, it will be worth $68k???

it was advertised about $25k for sale, and blocks to get sold for about 25-30k on average

 

[HotRod]

But seriously, shouldn't this have been picked up by your DD?

 

[virgo]

Land

Wow! if you do not build and pay another 5 years of rates, you can almost get another block

 

[TMNT]

But seriously, shouldn't this have been picked up by your DD?

I have a property 100m away from there, and the rates are $1200, so I just assumed it was either the same or less,

so yes I guess I failed in the DD process for this one!

oh well, live and learn

 

[Ausprop]

play it careful if you complain to the council - you may find your other property rerated

 

[DaveM]

Are you sure the conveyancer didnt forget to adjust council rates at settlement?

 

[TMNT]

Are you sure the conveyancer didnt forget to adjust council rates at settlement?

im pretty sure its right, is $600 per quarter installment payment,

ouchy!

 

[Corey Batt]

Take bank val to council and get their valuation reduced.

 

[jim1964]

Do you have oil or gold on this property??

 

[skater]

play it careful if you complain to the council - you may find your other property rerated

Agreed! I bought a small block of Strata units in a Regional area some time ago. Was told by Agent (and Council, because I checked), that I would only have one set of Rates to pay, if I sent Council a Stat Dec that one owner owned the block, plus a smaller amount, I think it was rubbish collection, for the other three.

First year, this was correct! Second year, same thing. Third year I got a bill for four lots of full rates. After disputing this repeatedly, I finally got an answer that I didn't like at all. They had decided that unless I had the Strata revoked, I would have to pay four full rates.

Well, I didn't want the Strata revoked, so I reluctantly agreed to pay four rates BUT they now send me three full rates and one smaller amount for the third property. I'm not going to say a word. I'm just paying what they ask for.