Hi All,
Just wanted to know what is the relevance of the council rates valuation of the property. I am interested in a property which has a Capital Improved value of ‘287000’ in the 2004-2005 rates notice. But it is on the market for 330K. Want to know how much weightage I should be putting on the councils valuation??? Any ideas.
Thanks guys.
C’mon guys i would really apprecaite some comments/opinion/experiences on this.
Iam sure this is a very relevant issue.Cheers
In this market – its not relevant too much. Prices are always more than the site value and capital improved value.
Thanks Yack…
But do you think even 1st Jan 2004 Council valuation would also be irrelevant as in case of my property the Council has increased the site value by almost 40%.Cheers
I just got my rates notice yesterday on a property.
Site value
2003 $220000
2004 $ 280000 valued at 1 july 2004.
ie. up 27%.But the home is still worth what it was 12 months ago. The home i reckon is worth $360k and was probably the same 12 months ago.
I am in Melb.
Hi djones,
In answer to your question re the relevance of Capital Improved Value (CIV), I’d like to ask you, in relation to what??? Market value??? NONE; IMO there is no comparison; every council values properties (sites) within its jurisdiction differently, and these can vary extremely from one suburb to the next. I would not base any property purchasing decision on CIV figures, but on what figures the market is paying for similar properties.
Cheers,
Jo
none – its the basis for charging rates and is generally a running average of the past three valuations which could be spread over 6 – 9 years or so.
quick answer is still none, very rough guide, well,,, maybe.
In Victoria once every two years the Office of the Valuer Generals asigns registered valuers an area in which to value the properties on its behalf.
I can not imagine that they go out and look at every single property in their assigned area… So like brahms says it is probably just some arbitary formula that they use which gives a result that bears little resembalance to the market value. Sometimes they over shoot and sometimes they under shoot.
Of course if they over shoot your rates and land tax will be affected which means it is time to make an appeal against the valuation.
Cheers,
GregThanks for all your replies guys. i appreciate it…….
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