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 district-wide 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.