WHY HAS MY PROPERTY BEEN VALUED?
Every Council in New Zealand must complete a revaluation of all properties in its area at least every three years. Central Hawke’s Bay District Council’s last revaluation was in 2015.
Who is responsible for the revaluation?
Central Hawke’s Bay District Council contracts Quotable Value Ltd (QV) to carry out the revaluation.
What are Rateable Values?
Rateable Values are used as a base for setting general rates, land transport rates and stormwater rates. Every District property has been valued as at 1 September 2018. Any further market increases after this date can’t be taken into account. Rateable Values are comprised of three components:
Capital value – the probable sale price for the property on 1 September 2018. This doesn’t include chattels.
Land value – the probable price paid for the land on 1 September 2018.
Value of improvements – is the difference between the capital and land values.
Rateable Values are not designed to be used as market valuations for raising finance or as insurance valuations.
QV’s systems and processes are independently audited by the Valuer-General.
How have the new values been determined?
QV reviews all sales over recent months then using mass appraisal techniques has applied these to similar properties. They’ve also reviewed properties for which building consents have been issued. Owners of non-residential properties have been surveyed to obtain up to date information about rental income.
IF MY PROPERTY VALUE GOES UP – WILL MY RATES ALSO GO UP?
The revaluation of all the Districts properties doesn’t increase the total amount council collects from rates, it helps us work out everyone’s share of rates. That means an increase in your property’s land value may not mean you pay more rates. If your property has a ‘below average increase’ it’s likely to have no impact on rates and in some cases, may mean you pay less. A ‘higher than average’ increase could result in a rates increase.
What have been the average changes in values over the last three years?
Residential property values have increased significantly, with much of the growth being driven by land value increases, and section prices at unprecedented levels.
Housing at the lower end of the market, has experienced substantial capital value increases compared to the District average increase of 54.9%.
Residential land values have increased on average 55.6% with some lower land values more than doubling, and high land Values increasing approximately 25%.
The average capital value for lifestyle properties has increased 38% to $740,000, with the corresponding average land value increasing by 54% to $460,000
The rural sector values have increased between 13% and 71% with property types transitioning between lifestyle and larger farms with already strong values.
The Commercial and Industrial value changes are generally positive, however there have been some decreases in value for properties which are earthquake prone or potentially earthquake prone.
What else impacts on the rates calculation?
Your property’s capital and land values are just one of the elements used to calculate your share of the Districts rates. Properties are also charged ‘targeted’ rates – rates that relate to services available to your property.
WHAT HAPPENS NOW?
The new values will be used as the basis for setting and assessing rates as from 1 July 2019.
The Council has yet to make any decisions about the rating system and levels of rates for 2019/20.
Over the coming months the Council will consider the impacts of the changes to valuations on rates and if any material changes are proposed these will be the subject of public consultation in association with a draft Annual Plan released in March/April 2019. At the same time we will provide information showing what your rates are proposed to be for 2019/20.
How do I object to my rating value?
If you believe the new valuations for your property do not fairly represent its market value as at 1 September 2018 you’ve the right to object. Details showing how to do this are shown on the reverse of your enclosed Notice of Rating Valuation. Please note objections must be received by QV by 25 January 2019.
How do I make enquiries?
If you wish to find out more about your rating value and compare it with others in your neighbourhood, you are able to look on the QV website www.ratingvalues.co.nz.
Enquiries about the new valuations can be made by calling QV on 0800 787 284 (0800 QV Rating).
Enquires relating to rates, contact the Council
W chbdc.govt.nz E firstname.lastname@example.org P 857 8060