QV explains valuations at council meeting
Published on March 21, 2023
On Tuesday, 21 March Simon Willocks from Quotable Value (QV) spoke to Whanganui’s District Council’s livestreamed full council meeting about trends in this year’s property valuations.
Councils are required by law to get properties in their district revalued every three years.
The council’s chief financial officer, Mike Fermor, says some people think the council collects more rates when property values go up but that’s not correct.
“The total we need to collect in rates is calculated by working out the cost of providing services and facilities for the community for the year. This doesn’t change because property values go up.”
He says what revaluations can change is your ‘piece of the pie’ or the amount you pay compared to others.
“Revaluations help us work out everyone’s share of the rates.”
Fermor says the trends coming through from QV this year show some big variations between properties.
Fermor says the reason behind these variations is substantial increases in land values in areas like Castlecliff, Aramoho and Gonville.
Over the last three years land values in Aramoho have increased +141%, while land values in St John’s Hill have increased by +60%.
“So what we’re seeing is lower-priced properties generally going up in value more than higher-priced ones. Because a large portion of rates are determined by a property’s value, some of the lower-priced properties will pay more than previously – however they will still be paying less rates than higher-priced properties.”
QV Rating Manager, Simon Willocks told elected members the market was the driver for lower-priced properties increasing more in value.
“Where people have been able to secure a property or piece of land in an affordable price range they’ve been keenly sought after and that demand has been reflected through into these values.”
Whanganui Mayor Andrew Tripe says the timing of these property valuations is not ideal. “We know life has been tough for many people in our community with cost of living pressures only increasing in recent times. As part of the annual plan process we’ve gone through the council books to find areas where we can make savings, while still ensuring we’re investing in services and facilities to help our district thrive.
“Some people won’t be particularly affected by QVs revaluation but for others it will exacerbate an already stressful scenario.
“If you’re struggling to pay rates I’d encourage you to get in touch with our rates team – there are options available.”
As property valuation experts, QV deals with objections to valuations. If you think your valuation is too high or too low, get in touch with QV to lodge an objection before Friday, 14 April. You can contact QVs call centre on 0800 787 284, email firstname.lastname@example.org or lodge an objection on this link: Object to Rating Valuation (qv.co.nz)
To set up a meeting with Whanganui District Council to discuss options for paying your rates, phone 06 349 0001 or email email@example.com Consultation on the annual plan, which explains how the council will fund services and activities and sets rates for the next financial year, will start on Monday, 3 April.