Rate value verses bank valuation

Happy new Year all.

Hey, just going through a loan reshuffle and have noticed all sorts of incorrect things on my bank loans and security details. But, after getting a couple of new valuations, which the bank has kindly passed on to me( chuckle-it helps if you are nice) I have noticed that the bank valuers have given very low values compared to the rates I pay. The values appear to be true current market values,( even though I can shoot holes in their assumptions) whereas i have been paying the same rates for the past 4 years- same council value for Unimproved land.Beachfront land-I wouldda thought the values would have stayed true or even increased, if only by a little. Question is-can I challenge the council? We are talking about a $200K incorrect amount. Or should I challenge the valuers ( which I have already done regarding an other matter, and won) I prefer the valuation to be in line with the rates, but one of them is incorrect and has to be sorted. An extra $200k in equiy would also be handy.

Moral of the story--check the banks, and all the details regarding your security on offer.
 
Question is-can I challenge the council? We are talking about a $200K incorrect amount.

The council get their valuations done by the Valuer General.....and yes the VG can & do make mistakes. Yes you can challenge the VG's valuation and there is a process to be followed to do so (usually explained in a pamphlet accompanied by your new val notification from council).
 
Rates values don't bear much relation to reality. One of mine seems to increase by 10% each year (which is pretty accurate, that's what the market value has been increasing by) and the other one got stuck at the same value for 6 years in a row, the VG turned up and it increased by $10,000 - taking it to slightly under half its improved market value. My property values differ by a factor of 3 and I pay virtually the same rates for both so I'm not contesting anything lest my rates go up - the cheaper house is in a rip-off council.

People get their rates valuations changed all the time. Just go do it :)
 
When looking to validate a true estimation of the value of your property, ignore council valuations on your rates notice. They are next to useless.

If your council valuation was $200k less, then what is the difference in rates you would be paying?

As for bank valuation, well that is arguably more accurate, but it depends on when they were done, and the market movements since then.

Recent comparable sales are the only way to confirm the true market price of your property. As you alluded to, an extra few dollars in equity may be more useful than arguing a small reduction in your council rates.

Then again, you could both? :)
 
and yes the VG can & do make mistakes.

They sure do!

Many years ago, my 1st IP was a block of 4x1br units. (single title). As a novice, I just paid the rates notice for a couple of years without really paying attention. When I did pay attention, the council had the property listed as 3x2br units (next door). Objected and they dropped my value, and I saved about $200 pa.
 
Could be a lot if the property's only worth $100k!! :)

Cheers,

The Y-man

I looked at the City Of Port Phillip website because i know they had rate information and calculations.

Based on a $200,000 differential in the valuation of your property, this equated to paying $371.35 more in rates.
 
interesting. I just had an experience with my bank (ANZ) the other way around.
PPoR rates valuation (dated 1st Jan 08) is 390k ... and bank valuation came in at 534k (against my conservatively provided estimate of 530k). Not bad considering I bought the place for 365k in Nov07 :)
 
well, in this case, the rates are currently (aparantly) overvalued. I pay rates on 2 blocks of land at the VG value of $500k UIV each. Have paid on this value for 3 years. Last month bank valuation came in at $350k each, with an $800k house value. The properties in the area have not dropped in value at all, in fact, we are one of the only places where the GFC had minimal impact, and it was just stated today that our area has in fact experienced yet an other 2.6% increase in the last 6 months. Either I have overpaid my rates for the past 3 years, or the bank valuation has made a total stuff up, based on 2 fire sales( divorce settlements) down the road.( I not that the fire sales are in fact the comparisons to my property) I have lost $300K in equity-not $200k, so its even worse) Our property has been improved since the last valuation, and is listed as superior to the 2 fire sales. The loss in value is totally in the land content. But it just is not possible. so if I tackle the council, do they take aparent market value into account, and reduce my rates, or do i tackle the valuer and try for a better valuation?
And- if I get my rates reduced and the value is decreased is that in my favour for the future- i mean- what possible retribution could i get from it, eg, will it impact any subsequent valuations from future valuers ( hopefully one with a better finger on the pulse)
 
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