Melbourne property question - council valuation

[scientist]

I just recently bought a property and noticed that on the council rate's notice, their valuation of my property (the capital improved value) is higher than my purchase price by around 7%, undoubtedly causing me to pay more rates than I ought to.

2 questions

1) is this common occurrence? usually council valuations are ultra conservative (in Syd at least). Should I be proud of the deal or is it sort of common?
2) how do I appeal the council valuation for being over market value so I can pay the right amount of rates?

 

[Peter_Tersteeg]

It's actually fairly rare in my experience around Melbourne.

The good news is, when applying for finance, get a copy of the bank valuation. You can use this to challenge the rates notice and get a discount.

 

[scientist]

Thanks that's a great idea

 

[S.T]

There may be a time limit you can challenge the rates within, I thought it was something like 3 months from receiving latest 2 yearly valuation. usually has information with the council rates notice (on reverse for some).

 

[evan1875]

I just recently bought a property and noticed that on the council rate's notice, their valuation of my property (the capital improved value) is higher than my purchase price by around 7%, undoubtedly causing me to pay more rates than I ought to.

2 questions

1) is this common occurrence? usually council valuations are ultra conservative (in Syd at least). Should I be proud of the deal or is it sort of common?
2) how do I appeal the council valuation for being over market value so I can pay the right amount of rates?

1. In Melbourne too! So I would be happy if that was the case.
2. Definitely see if you can pay less.

 

[Tillie]

Personally I believe that you got a good deal but from my experience a council is just going to say that congratulations you got a good deal below market value, BUT we value your property x and rates are y.

But maybe you have better luck than I have had...

 

[natedog]

I experienced this a couple years back..,.mornington council in Melbourne

Bought a property for $435k settled using CBA on which I had a rates valuation that was $595k...it was a good deal!

SO then I got thinking and researched whether a new lender would accept the council val to refinance using the higher value.

Which I did (ME bank)

So I refinanced a couple months later, pulled out all the deposit id put in with a lityle biy more and then used this as deposit for another property....

THEN I called the council an disputed the rates val over the phone and the valuer agreed to drop it back to $550k

WIN and WIN

bizzare deal that I probably won't be able to replicate again!

 

[scientist]

Fantastic!

I experienced this a couple years back..,.mornington council in Melbourne

Bought a property for $435k settled using CBA on which I had a rates valuation that was $595k...it was a good deal!

SO then I got thinking and researched whether a new lender would accept the council val to refinance using the higher value.

Which I did (ME bank)

So I refinanced a couple months later, pulled out all the deposit id put in with a lityle biy more and then used this as deposit for another property....

THEN I called the council an disputed the rates val over the phone and the valuer agreed to drop it back to $550k

WIN and WIN

bizzare deal that I probably won't be able to replicate again!

 

[Scott No Mates]

1) usually council valuations are ultra conservative (in Syd at least).

In NSW valuations are undertaken by the Valuer General not by the council. The valuations are for land tax purposes and are for the unimproved capital value ie land value excluding any buildings.

They use bulk valuation methodology ie a statistical valuation method not individual valuations.

This methodology has been proved to be flawed wherever a scarcity of comparable sales can be found to back up the value determined by the VG ref: Maurici v Crown.

 

[cadence]

I experienced this a couple years back..,.mornington council in Melbourne

Bought a property for $435k settled using CBA on which I had a rates valuation that was $595k...it was a good deal!

SO then I got thinking and researched whether a new lender would accept the council val to refinance using the higher value.

Which I did (ME bank)

So I refinanced a couple months later, pulled out all the deposit id put in with a lityle biy more and then used this as deposit for another property....

THEN I called the council an disputed the rates val over the phone and the valuer agreed to drop it back to $550k

WIN and WIN

bizzare deal that I probably won't be able to replicate again!

Genius