Properties and Valuations

A rating valuation is based on the likely selling price (market value) of a property (excluding chattels) at a particular point in time (the effective date).

Rating revaluations are carried out on all properties in New Zealand, usually once every three years to specifically help local councils allocate rates in the following three years. For more information go to www.ratingvalues.co.nz or watch this YouTube video which explains the process: https://www.youtube.com/watch?v=DLh3nSC7CxU&t=18s

For Carterton District Council, revaluations are carried out on their behalf by Quotable Value (QV), a Valuation Service Provider.

Rating valuations are just one of a number of factors councils use to allocate rates.  An altered valuation does not necessarily mean a change in rates liability. Council expenditure determines rates levels and rating valuations are the means to distribute the rates requirements to individual properties. Changes to rates will vary between properties depending on how much above or below the average value change they are and on what general, targeted, and differential rates are applicable.

Once a council general revaluation is completed (usually once every three years) an updated Rating Value is sent to all property owners in the areas on an Owners Notice.

A property value is made up of three components:

Capital Value (CV) – this is what your property is likely to have sold for at the date of your local council’s last general valuation, excluding chattels. The CV is also known as Government Valuation (GV) or Rating Value (RV).

Land Value (LV) – the most likely selling price of the bare land at the date of your local council’s last general revaluation.

Improvement Value (IV) – this is just the difference between the land value and the capital value. It’s important to note here it does not mean the replacement cost of buildings and services on a property.

Assessing rating values is a service QV performs for local councils around NZ. Rating values are calculated by QV valuers who analyse recent sales and compare similar properties using technology and experience to determine a property’s rating value. QV valuers may also inspect properties sold recently and those where building consents show work has recently been completed. Because of the vast number of properties in NZ it’s not possible to view every property in person, (although many urban properties are looked at externally to check the accuracy of the proposed value level). You can research local area sales and other property information on QV.co.nz or on the QVhomeguide APP.

Capital Values (CV) are for rating purposes. The CV is the likely price you could sell a property for at the date of the council’s last general revaluation (this differs for each council across NZ). Market valuations are different to capital valuations or rating valuations. You can request a current market property valuation at any time from a QV Registered Property Valuer. The QV Property Valuer will thoroughly inspect the interior and exterior of your property. They will also use their local knowledge and analyse recent sales data in the area. All this information will be presented in a comprehensive report that will include a market value for your property, which will be current at the date you request it.

If you’ve refurbished or renovated your property, but the work hasn’t required a building consent e.g. a new kitchen, bathroom, deck or something else, QV or the council won’t know about those changes and your rating value may not have been amended to reflect this. In these cases you need to contact QV or the council to have these reviewed.

Give QV a call on 0800 787 284 and they can discuss your options further.

Any change in rating value will not be rated upon until 1 July of the next rates year

Yes. There is an official objections period – the last day for objections is 19 March 2021.

You can make an objection online, or by personal letter and posting to QV. Whichever way you make an objection; you’ll need to include these details:

• The valuation reference number
• The address of the property you’re objecting about
• A daytime contact telephone number
• Your postal address
• Your reason for objecting
• An estimate of what you believe is the true value of the property

If you feel your property’s rating value doesn’t reflect your property’s market value (as at the date of your council’s last rating valuation), you have the right to object.  The closing date to lodge an objection to your new rating value is outlined on your owner’s notice.  It is approximately six weeks from when the new values are released.

Objections are part of the valuation process because they give property valuers the opportunity to assess individual factors that they may not have been aware of so have not been considered as part of the value assessment e.g. you may have put in a new kitchen.

A council revaluation is completed every three years.  Outside of this period you may have made changes to your property, which didn’t require a consent, that might affect your rating value.  If this is the case, you may be able to request an Urgent Rating Value Review

Telephone QV on 0800 787 284 (0800 QV Rating), and discuss your concerns with them. Often issues can be resolved without formally objecting to the valuation. We can only process objections to ratings valuations that QV completed.

You may have completed some work on your property that didn’t require a building consent (such as a deck, landscaping, a new kitchen or bathroom etc) or you may simply consider that your rating valuation was not right at the time of your council’s last general property revaluation.

To reflect the current condition of your property you can request an Urgent Rating Value Review by one of QV’s experienced property valuers. An inspection of your property will usually take place within five working days from your request. The property valuer will check the accuracy of the property valuation and details held on it. They will then compare your property’s characteristics to those of similar properties as at the date of the council’s last revaluation to determine whether your rating value should be changed. The property valuers are required to comply with strict guidelines set out in the Rating Valuations Act 1998 (Section 16), which outlines the need for consistency in values across all properties that are considered similar.

A rating valuation has many aspects to it, some of the aspects valuers consider are:

• Location
• Size
• Condition
• Character
• Quality of the construction
• Views / outlook
• Access (drive on)
• Garaging / off street parking
• Other buildings or notable features
• Sun (aspect)
• Modernisation (kitchen and bathroom)
• Number of bedrooms / bathrooms
• Privacy
• Access to local transportation and amenities
• Street Appeal
• Noise

This may not affect the rating value, as every home requires a certain amount of maintenance to keep the home in good working condition. Not all maintenance ‘adds value’ to your property, however a potential buyer would probably view your property in a more positive light as they won’t need to re-roof for another 30 years or so.

All property owners are entitled under legislation to pay to have their rating value reviewed, however any new property valuation must comply with the rules stipulated in the Rating Valuations Act 1998. The primary purpose of a rating valuation is to assist your local council with the allocation of rates therefore, any new property valuation must ‘preserve uniformity with existing roll values of comparable parcels of land’. To explain this simply, if your property is one of five identical properties, they should all have a similar rating valuation.

You do have the option to request an Urgent Rating Value Review. See above or go to http://qvgroup.qv.co.nz/urgent-rating-value-review

A lot of work can be done to a property that doesn’t require a building consent. In these instances, unless the owners have contacted QV to tell them of these changes, it is unlikely that we will know about them. This includes improvements such as modernising a kitchen or bathroom, redecorating, landscaping and much more. Our valuers can inspect your property and compare your property’s characteristics to other similar properties. Following inspection you will be sent an updated Owners Notice.

If QV is the rating valuation services provider in your area we will be automatically informed by your council when building consents and subdivisions occur and will make an inspection of the property when they are next completing valuations in your area. This could be up to 3-6 months into the future. If you would like your rating valuation reviewed urgently, you can pay to have a valuer come out at your convenience and time frame.

Owners are entitled to lodge an objection to the review decision if received within the specified time frame and manner required. QV may require another valuer to re-inspect the property and provide a ‘second opinion’ on the value of the property. A decision will be forwarded to the owner in due course.

Only an owner or ratepayer of a property can request an Urgent Rating Value Review at www.ratingvalues.co.nz

If you have any questions email QV at ratingsupport@qv.co.nz or call 0800 QV Rating (0800 787 284) or go to www.ratingvalues.co.nz