Homeowners in Auckland will wait an additional four months for updated capital valuations (CVs), originally due in May 2023, as Auckland Council addresses data amendments requested by the Valuer-General.
CVs, updated every three years, help determine property rates but are not reflective of true market values. Factors like insurance payouts from the 2023 floods and market stagnation may have influenced the delay.
Experts suggest the delay could reveal reduced valuations, affecting vendor expectations. The council aims to finalize and apply the revised CVs by July 2024, ensuring “accuracy and fairness” in rate calculations.
Image credit: Donovan Kelly
In the meantime, we continue paying rates at the highly inflated Covid rates !
Will we get any back-dated compensation for these overcharges ??
Not blooming likely – the Council will just trouser these as usual.
CVs, updated every three years, help determine property rates but are not reflective of true market values.
But in the same breath
Experts suggest the delay could reveal reduced valuations, affecting vendor expectations
Houses have dropped at least 20% in Auckland so rates should have gone down.
I am going to make this relatively straightforward as I can.
If it costs $100 to run the city, and there are 100 dwellings, $100 divided by 100 makes the rate $1 each. The rate is 1.
1. To put it simple, the amount you pay is based upon what your council spends.
2. Rateable values are periorbital to the value of the property over the past 12 months.
3. What the building is used for. Residential, commercial, farming etc
4. Commercial could be retail, petrol station, repair services, manufacturing, etc.
5. Some land is worth more because it is in a nice location. Locations have zones. For example, Wellington Johnsonville is 9a and Wellington Orential Bay is 1a. 1a is charged a much higher rate than 9a.
But wait, there might be a few more things.
Example. In Wellington there is a levy on the new wastewater treatment plant and stadium.
Commercial buildings are charged about 3 times as much and residential. So it’s a bit of a bummer if there are no commercial building in your city.
A poll tax is charging dwellings on how many people live in the house. kinda anti family really.
There is also 15% tax on the rates because the council is a service.
The amount of water and waste water used is charged for too.
What needs to happen is councils need to spend money on what is needed and not what is wanted. More people need to live in your city. That is the only way rates will come down.