The Rateable Value or RV of your home is set by your local council for the purpose of calculating how much to charge you in rates.
Rateable Value is also referred to as the Government Valuation (GV) or Capital Value (CV).
Rateable values are made up of three components:
Improvements refer to anything that is on or for the benefit of the land. Typically, this includes the buildings that sit on the land, the landscaping, services, driveway and surfacing. For an empty section, this covers any work completed, such as services installed, landscaping or driveway access.
To calculate rateable value, the Council’s valuation service provider undertakes a mass appraisal valuation exercise comparing recent sales in an area to the property being valued. The Rating Valuations Act 1988 requires that every Territorial Authority must revise its District Valuation Roll at intervals of not more than three years by revaluing every separate Property within its District. This is to ensure that the Roll represents values current as at the date of the revaluations.
The rating valuation is conducted by a valuation service provider like Quotable Value, who revalues the property values within an entire rateable area at once, using council-held information for each individual property such as property type, location and land size, zoning, floor area, views, consented work (such as renovations), current market activity and other factors.
The council’s revaluation process is done primarily for rating purposes. It is not done to provide values for property owners - for marketing, sales or any other purposes.
The rateable value is sometimes listed in real estate advertising when the real estate agent or home owner feels that the RV is a good indication of the market value of the house, but should only be taken as a rough guide. It should never be assumed that the rateable value is the same as the market value, as the RV doesn't always take into account things that make a property better or worse than others in the area:
Sometimes an RV can seem wrong, especially when a house has been very recently renovated, or when a property is unusual. Home owners can choose to get their house's RV reassessed by the local council if they feel that it is too high or too low.
If you have recently had renovations done that required a building consent, the council may send around a valuer so that the rateable value can be adjusted appropriately.
If a property’s rateable value was last updated two or more years ago, it may no longer be relevant in the current market. As a rule, you should only use the rateable value in combination with other information, like your own experience or by getting an independent valuation from a registered property valuer.
Registered property valuers are impartial and independent property professionals who are qualified and trained to assess the market value of your property.
The registered valuers at TelferYoung Otago have in-depth knowledge of the local real estate market, particularly recent sales in your area and an understanding of building methods, architecture and style. They’ll also be familiar with district plans, the RMA and government legislation.