Rateable Value and Market Value – How do they differ?
30 May 2016
What is the rateable value of a property? This is a value completed by a valuation service provider, on behalf of your local council to assist with the calculation of rates. Every property in New Zealand has a rateable value and the values themselves are set (usually) every three years.
The rateable value as provided for each property is broken down into the Capital Value (CV), Land Value (LV) and the Value of Improvements (VI). This value excludes chattels. For residential property, the values are assessed largely through the analysis of comparable sales evidence but it is important to remember that as these values are only assessed three yearly, in a rapidly changing market, the values may be quickly out of date. Equally important, these values are undertaken on a mass appraisal basis using the data the council holds on each property and properties will not necessarily have been individually inspected.
Market value however, is the value of a property at any given date and that value will of course be dependent on a number of variables including market supply and demand, interest rates, the willingness of both the buyer and seller to enter into an agreement and the physical and locational factors associated with the property itself.
So if you are considering buying or selling a property, how should you determine its likely value? myvalocity can assist you, as you can purchase an iVal Report on the property which is a computer generated market value, based on the analysis of recent comparable sales in the locality having similar characteristics as the property being valued. Alternatively, obtain the services of a Registered Valuer who will thoroughly inspect the interior and exterior of your property and will derive a value for you based on the inspection, their local knowledge and the analysis of market data.