Rates Notice Information

Can somebody please explain the rates notice I have for a particular property im interested in buying. I unfortunately, have no idea what any of it means, and what it means in respect to the purchase price. and do the figures look ok, seems a little expensive to be perfectly honest, and are the garbage charges annual?

Site Value: $230,000
Capital Improved Value: $345,000
Net Annual Value: $17,250

Rate: $939.45
Municpial Charge: $106.25
Garbage Charge 120L: $169.50
Garb Chg/Green Waste: 94.20 x
 
Site Value
This is the market value of the land as valued by the council valuation at a certain date. Thsi should also be stated on the rates notice.

CIV
The total value of the land, buildings

NAV
This is only really relevant to commercial/industrial properties. But its supposed to be the current estimation of a property's net annual rental. By law the NAV is 5% of the CIV.

They are not to be relied upon for an estimated selling price however. Comparable sales is what you need to look at. This information is otherwise irrelevant, except for the rates info, which confirms one of your prospective outgoings.
 
thanks buzz

There was a thread a week or so back saying that some people use council rates notice as a tool to value the property, so hence I was a bit interested to know,

in terms of selling price, I understand that its all about the market and comparable sales however, is the CIV any indication of what a property is worth at all??

P.S its actually the first rates notice ive seen with rubbish charges etc, and was wondering maybe the current owners have too many rubbish bins or are subject to a clean tax or similar???
 
I have rubbish surcharges on both sets of rates notices and it is on my parent's rates notice too.

The valuations on both of mine are wildly out - one is well under half what I have it listed for sale for (its been the same value for 6 years), and the other is about $15k higher than what the bank valued it at last year, but at the time the house was gutted so that isn't really surprising.
 
thanks buzz

There was a thread a week or so back saying that some people use council rates notice as a tool to value the property, so hence I was a bit interested to know....

Yeah I think Sash mentioned that the other day. He said he likes properties where the value of the land is higher (%) in comparison to the building itself.
 
Property Meister, I hope you don't mind if I ask a question regarding MY rates notice. It just seems silly to start another thread.

This is for WA. The wording is GRV which stands for Gross Rental Value (I think) with some silly amount like $10k. No other figures are mentioned. I understand this figure is determined by the valuer general or some such body, but what does it mean? It isn't the annual rent - even for here that is ridiculously low - I just don't get how they arrive at the figure and the website didn't really help.

Can any WA people help me?
 
Hey guys, is in unreasonable to ask an agent for an actual copy of a properties rates notice to ascertain the Council land value and capital improved land value figures?

The agent I'm currently dealing with is being very cagey about giving this information up... He says it's all going to be in the S32, is this correct?
 
Hey guys, is in unreasonable to ask an agent for an actual copy of a properties rates notice to ascertain the Council land value and capital improved land value figures?

The agent I'm currently dealing with is being very cagey about giving this information up... He says it's all going to be in the S32, is this correct?

Why would you care about what the council valuations are? They should not be relied upon as part of your due diligence for pricing. They often provide confusing and very conflicting information.

The only reason you could possibly need it for, is if you have a land tax issue and you wanted to know what impact the prospective purchase would have on your land tax bill.

As for what is in the Section 32, it depends if the owner gave to his lawyer/conveyancer. Sometimes, they will have given them the initial rates notice and other times, they provide one the installment notices. Only the annual rent notice will have that information on it.

I severly doubt the REA is being cagey about giving you the information for the fear of disclosing the council's valuation. Let me say for the last time, it has no relevance on today's current market value. Where else would the REA get the rates notice in anycase? Answer: Section 32.

Here endeth the first lesson. :)
 
Great answer Buzz!

The rates notice as had been said in a previous thread, has next to no bearing on the market value of a house, completely irrelevant!!

Study the local market yourself before buying and be guided by your own research and what similar houses are selling for. This is the only thing that matters really.
 
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