The scoop on what’s happening with rates

Property owners should have received their latest Council rating valuations for their properties from Quotable Value in late May. We are often asked by people whether they should contest these valuations. Any objections should have been filed with Quotable Value by 30^th June. A major portion of your rate payment is the General rate and these are proportional to Land Values (LVs). In most cases, the bottom line is that the higher the LV of your property has increased compared to the average increase of LVs across the district, the higher your increase in the General rate will be. Those with a lower-than-average increase in their LV may see a decrease in the General rate. Council’s website has a handy tool for calculating rates for individual properties.

As usual, these valuations have prompted questions and concerns about the impact these changes are likely to have on buyers’ perception of market value. It is important to remember these valuations are a snapshot in time and are often based on comparable sales completed prior to October 2022. Changes in market conditions since this time are not considered nor are any renovations or improvements that are not recorded on Council’s records. Therefore these changes are not likely to be represented in Quotable Value’s valuation algorithms unless they have been invited on-site through the contestation process. A more accurate representation of fair market value involves an on-site inspection of the property inside and out such as a recent assessment by an Independent Valuer or a recent market appraisal from a qualified real estate agent. In the last two months, house sales prices have completed around 3 to 5% below the October 2022 valuation. Of course, these differences can vary on a case-by-case basis and will undoubtedly change as time goes on.

In addition, Far North District councillors have agreed to increase the district’s total rates take for 2023/24 by 6.78 per cent, less than the 8.63 per cent increase initially proposed in the Annual Plan. The 6.78 per cent rates increase applies to the total amount of rates the council requires for operational expenditure. This increase comes on top of any effects on your property as a direct result of the recent rating valuations.

Here is a link to Council’s website with more information.