Does site (Govt Valuation) play a part purchase price

Hi all,
During research I started wondering if government valuations play a part in your decisions on the purchase price of a property.

I don't fully understand how the valuations are done ( OK, I understand the basics so no need to explain but seriously sometimes I just don't get it).

Do you place importance on it to utilise it as a bargaining tool or influence your decisions.

Cheers
Di

 

In which state or territory? In NSW govt val means squat. It has no bearing on market val at all. Used by councils to calculate rates and that's about the start and end of it.

May be different in Qld.

 

No, no different here in Qld, in my opinion. I am just curious what others think.

 

I avoid large sites with higher values than average for the area, lets you buy more property before hitting land tax, what tenant wants to look after a larger than usual block?

I bought a place last year, on one side of the main road 700 m2 block site value 140k, other side closer to the water site value 185k same size block but only about 200 meters away from each other divided by a main road, same potential growth and rental yield IMO.

Of course if there is potential for granny flat or duplex or subdivision or development then that is a different story.

 

SVO valuations are only a ratings tool. It plays no part in my investment decision.