Capital Value/Bank value/ Sale Value

Hi mates,
I am a new investor and I don't really understand much about these terms.
I have just purchased 2 properties.
1st one purchased price: 485,000. Capital value is 465,000 . Does this mean I overestimated the house and paid too much?

2nd one purchased price: 358,000. Capital value is 375,000
I plan to renovate it a bit and early next year, I will revalue it with the bank. There is nothing on the market now for less than 400,000 in this suburb with the similar size and numbers of bed.
Should I expect the bank value is more than capital value ?

Cheers,

 

Where did this 'capital value' come from?

 

It’s from the certificate of title with the form 1

 

Might be for land tax purposes. Not sure

 

@Ruan from my understanding

Capital Value - is a generic value given to a place for council rates or land tax purposes - councils will not value each house individiually but instead will give all 3 bed houses a very similar value. Typically much lower than sale value as the council doesn't want people contesting the valuation given.

Bank Value - What the bank/valuer values the property, typically conservative when no sale is in question but are taking into consideration the finish, location etc of the property which the capital value doesn't look at.

Sale Value - Where two parties (buyer/seller) agreed on the actual value.

Site Value - Value given to the land

unimproved capital value - similar to site value

Market value - see sales value

Below Market Value (BMV) - where people believe they bought something cheaper than the actual price but in reality market value is determined by one person agreeing to purchase and the other person accepting their offer which forms market value so you cannot technically get 'BMV'.

More values out there but hope this helps

 

[QUOTE="Big Will,

More values out there but hope this helps[/QUOTE]

Yes, it makes things more clear now.Thank you