What is rating valuation?
A rating valuation is a mass appraisal valuation of a property which is used by the Council for rating purposes.
Your rating valuation is the capital (includes improvements) and land value of your property which is independently assessed. The rating valuation is used by Council to help set rates.
When was the revaluation done and when will it have an effect on our rates?
The rating revaluation was completed in August 2019 and the new value will have an effect on your rates from 1 July 2020.
What do the terms capital value and land value mean?
Capital value: the assessment of the most likely sale price if the property (including buildings and all other improvements on the land, excluding chattels) was sold on the date of the valuation (1 August 2019).
Land value: the assessment of the most likely sale price for the land as at 1 August 2019. It includes development work such as drainage, retaining walls and levelling, but disregards any buildings or other improvements to the property.
What is the connection between rates and valuation?
Each year, the Council’s budget in the Annual Plan sets out the amount of rates needed to keep the Horowhenua running. This total is then split across ratepayers using a combination of factors. Rating valuations are just one of the factors used to calculate the amount of rates each property owner pays.
A change in capital value or land value does not automatically mean rates will increase or decrease because of that change. Valuations do play a part in working out the amount of rates paid by each ratepayer, but are not the only factor.
If your property received an above average increase in value compared to other properties in the District then you will likely have an increase in rates. If your property value did not increase or increased at a below average rate compared to other properties in the District then the revaluation may not result in an increase in rates or your rates could even slightly decrease.
Will a property sell for the capital value printed on the notice?
The capital value should reflect the market value of the property if it was offered for sale on 1 August 2019. However, the property market is dynamic and market values may have changed since this time and so you may get more or less for your property depending on what the market is doing.
How are the valuations calculated?
It is logistically impossible to inspect all properties in Horowhenua in a timely manner. As such, rating valuations are calculated using mass appraisal techniques focused on - what properties are selling for in the neighbourhood, the type of property – house, town house, factory, shop; trends and changes that have been made to properties since the last revaluation.
How are leasehold properties valued?
The Rating Valuation Act 1998 requires all properties to be values on a freehold basis for rating purposes. The capital value of a leasehold property is an assessment of the likely selling price of the property as at 1 August 2019 assuming the property is freehold.
Who carries out the revaluation?
Quotable Value New Zealand are the independent valuers who carried out the rating revaluation for properties in Horowhenua in 2019.
How can I get more information?