Will council look at improvements when calculating valuations

[shami]

When council does the valuation, will it look at any improvements that has been done like kitchen, bathroom renovation, insulation etc ?

[Leftette]

I'm afraid so, shami. If you're very lucky, you'll be instructed to make yourself available at some point between 9am and 4pm on a given day. Usually they nominate a range of days. You'll recognise the team of inspectors that arrive on the doorstep by their tan-coloured shirts and decorative collar embellishments - rather natty, shiny things imo. Each will be driving their own car.

You'll receive one distinctive rapping at the door. Be sure to answer it within 10 seconds. Have you ever seen those shows on television where the men carry those 3-4 foot long metal posts with handles?

These helpful gentlemen will be only too happy to inspect your kitchen/bathroom improvements. Just pray you don't get the sticklers who test for dust with their white gloves. Or simply make sure the top edges of all doors are clean before their arrival.

[speights boy]

35 per cent increase reveals rates plan loophole - National ...

[Shane D]

When council does the valuation, will it look at any improvements that has been done like kitchen, bathroom renovation, insulation etc ?

I guess you are talking about the once per 3 year government valuations (GV)for the purposes of putting a value on your rates?

No they won't look at your improvements unless you request the council's agent to come around for an evaluation. And why would you do that?

The council farm out the valuations to a company called Quotable Value Ltd. This company does not actually visit the majority of properties as there are 525,000 properties in the Auckland area (imagine what job that would be if they visited each property). The valuations are almost entirely based on recent historical sales of the area.

Shane

[speights boy]

Do they review building consents issued for property improvements ?

[Shane D]

Do they review building consents issued for property improvements ?

SB, good question. I don't know. I hope someone can pitch in and answer.

The poster shami, mentioned he did a kitchen, bathroom reno and installed insulation. None of that requires a consent...unless perhaps he changed the location of the kitchen or bathroom so needed major plumbing work done.

Shane

[Bob Kane]

Do they review building consents issued for property improvements ?

They sure do.
I did a large renovation on two bathrooms/laundry.
I applied for consent and gave a total cost of $10k.
My valuation went up $10k.
My neighbour did some serious work and proudly put $200k on his consent application.
His valuation went up $200k.
His rates bill is now higher than mine.
Since then my neighbour has sold his house at way under that valuation.
It still has that high valuation and high rates bill.

[elguapo]

Bob,

You'll like this bit out of SB's link then;

He said he bought a rundown home for his family with an early 2011 valuation of $770,000.
When the council revalued it last July for its rating purposes the figure was $10,000 lower.
He complained and the council reassessed it to take the renovations into account.
The new valuation was $850,000 and the rates were $2899 compared with $2238 under the land value system of the former North Shore City Council.

Punter gets a low valuation and feels hard done by so complains, council respond by jacking up his rates, punter then complains! LOL!

[Wayne]

Couldn't help but laugh at that one. And then they complained to the news paper. They wanted a higher valuation but the same rates it seems - some people are just so stupid!

[Shane D]

They sure do.
I did a large renovation on two bathrooms/laundry.
I applied for consent and gave a total cost of $10k.
My valuation went up $10k.
My neighbour did some serious work and proudly put $200k on his consent application.
His valuation went up $200k.
His rates bill is now higher than mine.
Since then my neighbour has sold his house at way under that valuation.
It still has that high valuation and high rates bill.

Bob,

Thanks for that little gem. Really handy to know that the value you put on the council consent application is the exact figure the council will increase your valuation by.

Shane

[Davo36]

We put a rumpus room under our house about 5 years ago. A few months later a lady turned up in a car to have a look. She was from quotable value.

And yes, she has seen the building consent.

[Gladdynook]

I believe that in Auckland at least, as soon as your consented building works are completed, your rates/valuation go up. They don't wait for the 3 year cycle.

Generally people keep the cost figures on the consent application low as this also reduces the council fees. Or at least this used to be the practice, not sure if it still applies under the "we'll charge you whatever time is used to handle your consent" process.