FAQs - property rating valuations
What is a rating valuation?
A rating valuation is assigned to every property in New Zealand and is made up of:
- Capital Value (CV) - this is what your property is likely to have sold for at the date of the council’s last general valuation. It includes buildings and improvements. It does NOT include chattels, stock, crops, machinery or trees. The CV is also known as the Rateable Value (RV), and was previously known as the Government Valuation (GV).
- Land Value (LV) - this is the mostly likely selling price of bare land at valuation date. It includes drainage, excavation, filling, retaining walls, reclamation, grading, levelling, vegetation clearing, soil improvement, and protection from erosion or flooding. It does NOT include buildings.
- 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. It reflects the value which buildings and improvements add to the bare land.
Why does the Council revalue properties?Why does the Council revalue properties?
The Rating Valuations Act 1988 requires all properties to be valued every three years. The valuation contributes and assists the Council to set property rates fairly. The Council follows the rules set out in the Rating Valuation Act 1998 and the valuation is audited by the Office of the Valuer-General.
An online version of the rules is available on the Land Information New Zealand (LINZ) website.
How often is my property valued?
Valuations are carried out every three years, Council contracts Quotable Value to complete this work. The latest valuation was done in 2021.
How is my rating value calculated?
QV’s qualified valuers combine their own experience and the latest valuation methodologies and technology to calculate your properties value. QV take a mass appraisal approach and will consider all factors influencing a property’s likely selling price, such as the property’s size, features, and recent refurbishments. They also consider the value of similar properties recently sold in the local area.
The Selwyn district contains more than 30,000 properties. It is therefore not possible for valuers to view every single property in person. They will utilise a range of tools to produce the property valuations, including statistical analysis, testing and inspections of properties during the rating period in the district to ensure accuracy.
The process of calculating rating values is independently audited by the Office of the Valuer General and strict quality standards must be met before a revaluation is confirmed.
Will the amount I pay for my rates change when my property in revalued?
Revaluation is just one of a number of factors that help determine your rates. An increase in the capital value of your property doesn’t mean your rates will increase by the same amount.
For most residential properties in Selwyn, only around 30% 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.
Any rates increase is determined by your property value increase compared with the average increase across the Selwyn district.
For example, a 40% increase in your property’s capital value definitely does not mean a 40% increase in your rates. If your property has increased by more than the average increase (33.7), then you will pay a slightly larger share of the total general rates. If your property value has increased less than the average, you will pay a lower share of the total general rates (this means that in some cases, even if your valuation has gone up, your rates could go down).
How does the value of your property contribute to the rates you pay?
Rates provide around half of Council’s income and this money pays for roads, stormwater and wastewater systems, water supply, libraries, parks and reserves and so on. The remaining income is generated from fees and charges, subsidies and grants, council investments and contributions made by developments that fund infrastructure to meet the needs of a growing community.
Your rates consist of three components, with around 30% of your total rates bill being calculated based on the capital value of your property:
- Uniform annual general charge (UAGC) – is a fixed amount billed to all properties (regardless of the property’s value).
- Targeted rates – are billed to each household for certain services or facilities that are available to the household. These include the likes of sewerage, waste collection and recreational spaces.
- General rates – are set and billed by dividing the remaining cost that has not be recovered (which is approximately 30% of the rates bill) through the UAGC, targeted rates and other Council income by the capital value of the districts properties. Each property will pay its share of this cost based on the capital value of their property.
The Council sets its rates annually after it has estimated the cost required to operate the Council and deliver services and facilities to the community.
What is the difference between Council’s rating valuation and a current market valuation?
A current market valuation provides you with a professional estimation from the registered valuer you have employed of how much, in their opinion, your property is worth in today's property market.
A Council rating valuation is undertaken by Council's valuation service provider to establish property values at a specific point in time to enable council rates to be apportioned, and excludes the value of chattels. Council currently arranges for revaluations to be conducted every three years, and hence a rating value is only an accurate measure of a property's relative value at the date of the current revaluation, which is currently 1 September 2021.
Can my rating valuation be amended between general valuations?
The rating valuation may be amended during the three-year period between revaluations because 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.
What if I have undertaken additions or renovations to my property since the last general valuation?
If you have an addition or alteration to your property that requires a building consent, our valuers will automatically be advised of this by our building consenting team. This may or may not result in a change to your value.
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.
What should I do if I disagree with the latest rating valuation of my property?
Ratepayers have the right to object to their rating valuations. These objections allow valuers to assess individual components which may not have been considered in the mass-appraisal process.
Objections must be lodged with Quotable Value by 17 March 2022. Visit QV’s website for more information. If you need assistance, please give QV’s revaluation team a call on 0800 787 284 or email firstname.lastname@example.org.