Council Annual Valuation and Actual Purchase Price

Hello All,

I unsuccessfully searched this forum to get answers so writing a new post. I have recently purchased a land in QLD for 160K. All the near by lots are selling around same range 155K to 165K. Area is redbank, IPSWICH council.

I just received by email the annual land valuation letter that the council sends every year. The land is valued at only 121K. I understand that there is always a difference between valuation and selling price. The difference I am seeing here is a big 40K difference.

I'd like to ask is this difference normal? Or have I over paid?

 

There's often a difference between council rates and actual sales prices.

On one hand, this could mean that the developer is pushing up prices. If the land is selling, then they've kind for defined the value of land in the area, for better or worse.

If the council is wrong, then this works to your advantage as you'll pay less rates (and possibly land tax). A low council valuation works in your favour.

 

Council land vals are unimproved values used for land tax and rates. They arent intended to reflect current market value.

 

Thanks Peter. Makes me feel better

 

Many thanks Paul for the reply.