Help with land tax dispute letter

Can someone please help me with my land tax dispute. Kedron has gone from $320k to $400k in just one year.

Dear Sir / Madam,

I am writing to please ask you to consider my land tax valuation.

I think an increase of $80k in one year is quite a lot. I purchased this property in April 2014 for the sum of $531k. It is a basic unrenovated 3x1 house on 443sqm. As I had already missed out on another two properties in Kedron, I decided to pay an extra $10-15k over the asking price, meaning I could very well have overpaid for this property.

Recent sales:

45 Edinburgh Castle Road sold in March 2015 for $570k with 506sqm
22 Edinbugh Castle Road sold in Feb 2015 for $570k with 5x2 and 607sqm
11 Patomar St sold in Feb 2015 for $503k with 516sqm
52 Seventh Ave sold in Feb 2015 for $582k with 607sqm.
Fully renovated 12 Evans St sold in Feb 2015 for $590k 425sqm.
3 Epping St sold in Feb 2015 for $562 with 615sqm.
20 Kate St sold in Feb 2015 for $565 with 607sqm.
111 Stafford Rd sold in Jan 2015 for $545 with 625.

According to (Realestate.com.au) RP data the median price for a 3x1 in Kedron is $565k. In the latest API mag it shows an increase of 10% in price over the past 12 months.

I believe if I were to sell my property it would probably go for $560-580k. To build a new house would cost around $250k, leaving the land value around $310-$330k.



thanks
 
Good luck - ours went up $100k in Kedron off a lower base to what I'd consider very unreasonable even in current market
 
Kedron has gone from $320k to $400k in just one year.....I think an increase of $80k in one year is quite a lot.

If it is true, perhaps as an investor, you might think this is a good thing? :p I imagine you purchased with the intent of the property value increasing?

You are free to challenge a VG valuation - it's worth a try. In the event that it does not get across the line, you'll just have to chalk it up as the cost of doing business and be happy vals are up, which is better than the alternatives (flat or falling market).
 
Can someone please help me with my land tax dispute. Kedron has gone from $320k to $400k in just one year.

Dear Sir / Madam,

I am writing to please ask you to consider my land tax valuation.

I think an increase of $80k in one year is quite a lot. I purchased this property in April 2014 for the sum of $531k. It is a basic unrenovated 3x1 house on 443sqm. As I had already missed out on another two properties in Kedron, I decided to pay an extra $10-15k over the asking price, meaning I could very well have overpaid for this property.

Recent sales:

45 Edinburgh Castle Road sold in March 2015 for $570k with 506sqm
22 Edinbugh Castle Road sold in Feb 2015 for $570k with 5x2 and 607sqm
11 Patomar St sold in Feb 2015 for $503k with 516sqm
52 Seventh Ave sold in Feb 2015 for $582k with 607sqm.
Fully renovated 12 Evans St sold in Feb 2015 for $590k 425sqm.
3 Epping St sold in Feb 2015 for $562 with 615sqm.
20 Kate St sold in Feb 2015 for $565 with 607sqm.
111 Stafford Rd sold in Jan 2015 for $545 with 625.

According to (Realestate.com.au) RP data the median price for a 3x1 in Kedron is $565k. In the latest API mag it shows an increase of 10% in price over the past 12 months.

I believe if I were to sell my property it would probably go for $560-580k. To build a new house would cost around $250k, leaving the land value around $310-$330k.



thanks

This letter does not state it is an objection to the land valuation. It also lacks subjective evidence of a reason why you land value based onM2 should vary from the local average.

Typical reasons can include very narrow blocks, issues affecting land use (ie battle axe and shading) heritage issues (eg a rock carving, cave etc), underground water etc....
Your comments relate to property value not unimproved land value as such. Who care its unrenovated. Its LAND TAX.

You should discuss with a local valuer as they typically arrive at the local M2 rate. Most VG offices are a subcontracted function handled by a panel of local valuers who determine a std M2 and then adjust from that. I had a client in NSW who had a Koala colony on her land and its protected. Objection agreed that land value was subject to conservation and diminished the value as it cant be built upon or farmed without harm to Koalas (a DA wont happen !!) so its of far lesser value than neighbouring land.
 
My mother had some success in having values reduced on individual properties.

I understand you need to provide comparables in land value (UCV) and the value of the house plus land doesn't really matter.

We had large increases recently and I was going to appeal until I researched what similar vacant blocks were selling for. I thought it best to slink away quietly in case they earmarked me for a further increase.
 
""I believe if I were to sell my property it would probably go for $560-580k. To build a new house would cost around $250k, leaving the land value around $310-$330k.""

building new house is irrelevant, its how much the current house is valued, which might be considerably less than the 'replacement' value of $250k.

Id be lining up to pay land tax early if I were lucky enough to have the value increase 20% in the first year of ownership.....

How much is this 'extra' valuation going to cost you in land tax?
 
Can someone please help me with my land tax dispute. Kedron has gone from $320k to $400k in just one year.

Dear Sir / Madam,

I am writing to please ask you to consider my land tax valuation.

I think an increase of $80k in one year is quite a lot. I purchased this property in April 2014 for the sum of $531k. It is a basic unrenovated 3x1 house on 443sqm. As I had already missed out on another two properties in Kedron, I decided to pay an extra $10-15k over the asking price, meaning I could very well have overpaid for this property.

Recent sales:

45 Edinburgh Castle Road sold in March 2015 for $570k with 506sqm
22 Edinbugh Castle Road sold in Feb 2015 for $570k with 5x2 and 607sqm
11 Patomar St sold in Feb 2015 for $503k with 516sqm
52 Seventh Ave sold in Feb 2015 for $582k with 607sqm.
Fully renovated 12 Evans St sold in Feb 2015 for $590k 425sqm.
3 Epping St sold in Feb 2015 for $562 with 615sqm.
20 Kate St sold in Feb 2015 for $565 with 607sqm.
111 Stafford Rd sold in Jan 2015 for $545 with 625.

According to (Realestate.com.au) RP data the median price for a 3x1 in Kedron is $565k. In the latest API mag it shows an increase of 10% in price over the past 12 months.

I believe if I were to sell my property it would probably go for $560-580k. To build a new house would cost around $250k, leaving the land value around $310-$330k.



thanks

Almost everything stated in this letter is not relevant.

You should state that you object to XXX and that this objection is based on the following sales prices of vacant land:

x
x
x

Property sale prices are not relevant because land tax is levied on land excluding improvements. You have listed a lot of sales figures but I have no idea if this is land or house and land.
 
We challenged a land valuation once on the grounds that the front of the block tended to be waterlogged.

Rep came out to inspect, got bogged and had to be towed out. Despite this, from memory, we got about a 3% reduction!!
Marg.
 
Almost everything stated in this letter is not relevant.

You should state that you object to XXX and that this objection is based on the following sales prices of vacant land:

x.


Vacant land may be more expensive than a knockdown - have a read of the maurici v SRO.

Your argument about knocking over and building new doesn't say what you think the new house would be worth if you sold it.
 
Vacant land may be more expensive than a knockdown - have a read of the maurici v SRO.

Unimproved land doesn't mean vacant land either. Vacant land just happens to be unimproved but land can be valued as unimproved without being vacant. Think it through. This the argument that fails the total value less building argument. The value of unimproved land is a theoretical object in most cases and considers the use of land exists just above it NOT just actually on it. To understand this logic think of land with something like a rock platform handing over the land. Its not worth much. You cant build, you cant demo, you cant plant crops. Its a cave.

If you have a piece of land that is 85degrees of fall think of its value. Impossible to build upon ? Well that depends. Pole homes may work BUT depends upon terrain - Rock, sand or vegetation ? If it is too narrow to support foundations. Driveway access etc...All features that impair value.

To object you really need to consider every issue that impairs the land use and enjoyment v's a typical piece of land nearby. So you need to understand the prevailing M2 rate used for your land and also the characteristics of your land v's the model land used.
 
We challenged a land valuation once on the grounds that the front of the block tended to be waterlogged.

Rep came out to inspect, got bogged and had to be towed out. Despite this, from memory, we got about a 3% reduction!!
Marg.

Was that in Palm Beach ?
 
Almost everything stated in this letter is not relevant.

You should state that you object to XXX and that this objection is based on the following sales prices of vacant land:

x
x
x

Property sale prices are not relevant because land tax is levied on land excluding improvements. You have listed a lot of sales figures but I have no idea if this is land or house and land.

Wouldn't it be really easy for the council to cross reference those properties and what land tax they're charged on land component only to compare?

I don't get why you'd need to find comparable land only sales.
 
Wouldn't it be really easy for the council to cross reference those properties and what land tax they're charged on land component only to compare?

I don't get why you'd need to find comparable land only sales.

You don't need to find land only sales, but need to establish land only value.
 
What I can see R3 is all the other properties in your street and surrounding streets have increased at the same amount. Your property is in a very good part of Kedron and although the larger blocks have increased at a lower % they still have increase considerably.
I would say this increase is part due to the previous 4 years with no increase.
 
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