Revaluation 2018 – what you need to know
If you are a Selwyn property owner, you will receive your new rating valuation notice for your property during November 2018. Here are some key points you need to know about revaluation.
Revaluation is district-wide and includes all properties in Selwyn
Revaluation is a legal requirement that every council in New Zealand must carry out. We do ours every three years. The new valuations will be used to help set the Council’s rates next year.
Revaluation doesn’t mean that the Council collects any more money from rates
Revaluation doesn’t affect the total amount of rates collected by Selwyn District Council, but it does help us work out everyone’s share of rates, which is based partly on capital value.
In general, property owners whose values increased by more than the average change across the district can expect a slightly higher than average rate increase from 1 July 2019. Property owners whose capital value increase is less than the average can expect a slightly lower than average rates change next year.
For most residential properties in Selwyn, only around a quarter of your rates bill is based on the capital value of a property, with the majority of the rates set based on a fixed amount per property, such as for library services.
Revaluation is just one of a number of factors that help determine rates
Even if the value of your property has increased significantly, this doesn’t mean your rates will rise by the same amount. There are a number of other elements to working out the level of rates.
Revaluation won’t affect rates until July 2019
The impact of revaluation won’t come into play until the 2019/2020 rating year. Your current rates will stay the same until then.
More information about revaluation will be included with your revaluation notice, which you will receive during November 2018.
Average changes across the district
The changes in valuation across Selwyn between July 2015 and July 2018 were:
- Residential property values rose by an average of 3.8%
- Lifestyle properties increased by an average of 8.4%.
- Farming properties increased by an average of 4.4%.
- Commercial properties increased by an average of 21%
- Industrial properties increased by an average of 12.9%
These are averages, and the changes will vary in different locations and market sectors.
Property value increases in the main townships include:
- Rolleston - 4.1%
- Lincoln - 1.1%
- Prebbleton - 2.4%
- Darfield - 0.4%
- Leeston - 5.1%,
- West Melton - 3.8%,
- Tai Tapu - 6.2%
- Southbridge showed a slight decrease of 0.3%
- Templeton average values decreased by 5% largely as a result of the impact of the Christchurch Southern Motorway.
- Residential values in the rural areas of Malvern increased by 7.6% and in Ellesmere by 3.3%.
Average House Residential CV & LV
Business Property Value changes 2015 - 2018
Rural % Value Movement 2015 - 2018
Rating valuations are primarily undertaken to allow the Council to determine rates.
Rates in the Selwyn District are calculated on the capital value of properties.
A rating valuation is based on the likely selling price (market value) of a property (excluding chattels) taken at the time of your local council’s last general property revaluation. Revaluations are carried out every three years. Valuations will remain valid for the next three years unless changes are made to the property through a building consent or subdivision.
Providing Council funding remains constant, only those properties that increase in value by more than the districtwide average will pay higher rates.
Quotable Value Ltd (QV) is the Council's current valuation service providers. QV Christchurch has a team of valuers that are responsible for the revaluation of the Selwyn District. The valuers inspect a range of sales to determine the market level for the District, then apply this level to the whole District. Statistical testing and a range of inspections are then done to ensure accuracy. To assist with the more difficult rural and commercial properties, individual worksheets are used.
Due to possible movements in the property market after the effective date of valuation, rating valuations are not the best tool for identifying the value of property for sale or securing a loan. If you are planning to refinance, buy, or sell a property, you are advised to get an independent valuation.
Rating valuations and Certificates of Title
What constitutes a rating unit is covered under section 2.4 of the Rating Valuation Rules, 2008. This is normally a Certificate of Title for land held under the Land Transfer Act 1952. Exceptions are where a substantial improvement straddles the title boundaries, where titles are legally required to be sold together or used as a farm and likely to be sold as a farm, or a large holding such as a reserve, airport, port, or rail yard.
Components to a Rating Valuation
Your Rating Valuation 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 the Rateable Value (RV), and was previously known as the Government Valuation (GV).
- Land Value (LV) - the most likely selling price of the bare land at the date of your local council’s last general revaluation.
- Value of Improvements (VI) - 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.
Calculating a Rating Valuation
Quotable Value’s qualified Property Consultants combine their own experience and the latest technology to calculate a Rating Value. They’ll take into account all factors influencing a property’s likely selling price, such as the property’s size, features and recent refurbishments. They also take into account the value of similar properties recently sold in the local area. Given the vast amount of properties in New Zealand, they are unable to view every single property in person, so utilise a range of tools to produce the rating value.
Amending a Rating Valuation
The rating valuation may be amended during the three-year period between revaluations as a result of one or more of the following:
- Any works affecting the land value
- Any change in the boundaries of a local authority
- Any extraordinary event affecting property values
- Any change in the provisions of an operative district plan
- Any subdivision, amalgamation, or resurvey of the land
- Any improvements being added to or removed from the land
- Any errors or omissions
- By requesting a new value as at the date of the last revaluation under Section 16 of the Rating Valuation Act 1998.
If you have an addition or alteration to your property that requires a building consent, our valuers will automatically be advised of this from our Building Section. This may or may not result in a change to your value.
Renovated between Rating Valuations?
If you have made renovations (that did not require a building consent) and want to make sure QV is aware of your changes, the best way to do this is to use Quotable Value’s UpdatemyProperty service.
Once Quotable Value are made aware of any renovations completed, your valuation will be updated prior to the next rating year, so it’s important ratepayers use this service to keep their rating value up-to-date and accurate.
The Office of the Valuer General is responsible for auditing the values in accordance with the Rating Valuation Rules, 2008.
An online version of the rules is available on the Land Information New Zealand (LINZ) website.