Revised valuations FAQs
My percentage has gone up will my rates go up?
The rating values are only used as a method of allocating the rates across the district. If your value goes up it doesn’t necessarily mean your rates will go up. For example, you could have an increase in your property value, but if that increase was lower than the average increase across the district then your rates would likely go down. Each category of property is valued differently as well, depending on its use. There are multiple categories across the district, and each category has had different valuation movements.
I think my property should be worth more/less what can I do?
You can lodge an objection with Quotable Value. Objections to the revised valuations must be lodged, in writing or on line at ratingobjection.qv.co.nz, no later than 8th March 2023.
You can also download an objection form PDF from our website or pick one up from our customer services counter. Your completed form needs to be posted to:
Quotable Value Ltd – Business Support
Private Bag 39 818
Wellington Mail Centre
LOWER HUTT 5045
Why have some property types gone up more than others?
While the increase in values is indicative of the increase in value growth over recent years, there will be some variability in the increase across different property types and location, driven by the differing preferences of property types being sought, sold and purchased.
Why has horticulture gone up so much?
Horticulture has over the last two revaluations increased in value significantly. This has primarily been driven by kiwifruit growth in production and value with Gold varieties being planted increasingly across the district. Four revaluations ago horticulture had a significant decrease in value due to the impacts of the PSA virus. The last revaluation brought the values up to approximately what they were before PSA, and this revaluation reflects the significant value add generated by the Gold G3 strain. There has also been an increase in the number of properties that have been converted to horticulture.
How is a property value calculated?
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 the last general revaluation, excluding chattels. The CV is also known as Government Valuation (GV) or Rating Valuation (RV). Land Value (LV) - the most likely selling price of the bare land at the date of the last general revaluation.Improvement Value (IV) - this is just the difference between the land value and capital value. It is important to note here it does not mean the replacement cost of buildings and services on a property.|
How is a rating value calculated?
Rating values are calculated by Quotable Value who analyse recent sales and compare and contrast similar properties using technology and experience to determine a property’s updated 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 by going to QV.co.nz or by using the QV homeguide app.
Is this the amount I can sell my property for?
Capital Values (CV) are for rating purposes. Although the CV may be used as an indicative price you could sell a property for at the date of the last general revaluation, we recommend you get a Market Valuation if you are looking to buy or sell a property. A registered 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 would 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.
I’ve renovated my property. Why is my rating value still the same?
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, Quotable Value 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 to have these reviewed.
Does Council do this so I have to pay more rates?
No. Every three years Ōpōtiki District council has a legal requirement to value all properties in the District under the Rating Valuations Act 1998 Section 9.
The new rating valuations will be used to help set the Council's rates next year. Revaluation doesn't affect the total amount of rates collected by Council, but it does help Council work out everyone's fair share of rates, which is based partly on capital value. If your property value has gone up by 30%, that doesn’t mean your rates will also go up by 30%. The total amount of rates we require to run the district doesn’t change just because property values change. Rating values are just one component of how rates are assessed.
If you don't look inside my house, how do you know what it is worth?
Councils store details on every property in New Zealand, including yours. Properties with similar attributes such as land area, and age of building, condition and location are grouped together. A value trend (determined by relevant sales) will then be applied to the group in which your property sits. A significant number of internal and roadside inspections are undertaken prior to the revaluation. QV also know and understand our local market conditions.
Ultimately however, if you are seeking your property’s worth for the purposes of selling or financing, you are recommended to get a market valuation from and independent registered valuer, as mentioned above.
What are the trends from the latest revaluations?
The actual change in valuation will vary for every property (ranging anywhere from an increase of 21% to a 100% increase), however, the overall trends were:
- An average increase for residential properties (including vacant sections) of 66%
- An average increase for lifestyle properties of 56%
- An average increase for commercial properties of 33%
- An average increase for dairy properties of 22%
- An average increase for industrial properties of 66%
- The total value of properties in the district has increased from $2.9 billion to $4.7 billion.
When does the new valuation come in to effect?
The Rating valuation is a valuation of your property as of 1 July 2022. This will be updated in Council’s systems and will be available in the Rating Information Database. However it won’t take effect for rating purposes until the 1 July 2023 – 30 June 2024 rating year.