Land Value - NSW Valuer General

So we got our latest land value assessment (Dated to 01/07/2016) and I was honestly shocked by how low it was. Located in the Hills Shire.

How does this (if it does) impact the valuation of the home? Recent sales in the neighborhood for homes in the less than 450 sqm have been between 1-1.2mil! and land has been selling for upto 1500/sqm (Understand this is what people are happy to pay!!), however shouldn't this be reflected in the assessment?

Example 1. 1200 sqm Land value - 990K
Example 2: 400 sqm Land Value - 470K

 

Fold up assessment.

Place in draw.

Smile and forget about.

 

ha! I could do that.
We're coming up to a mortgage refresh, so concerned this could impact our valuation?

 

It doesn't mean anything for your valuation. You got lucky. Don't worry, be happy.

The bank goes off what the valuer gives them and they base it off comparable sales. Not what some fictitious character in an ivory tower somewhere comes up with. Who is this valuer general anyway? Shouldn't he be off fighting a war somewhere instead of handing out valuations?

 

It means that if it is an IP, you have less land tax to pay.

 

Just got mine ( in hills shire area) as well.
checking the history:
2010 - 2013 : the land value was the same
1 July 2014 up 28.3%
1 July 2015 up 39%
1 July 2016 up 8.6%
so it's almost doubled in 4 years!

 

Lol,
I worked with 2 different VGs for a few years - good blokes actually
Land Valuations are outsourced to contracting valuation companies that value various representative benchmarks then the changes in valuation are applied across the area.
Any improvements to the block are not considered.

 

You should be happy that you can pay less council rate.

Don't bother these figures when comes to a valuation.

 

Do you mean intangible improvements (e.g. location specific aspects)? Physical structures and any changes in them by default are not considered in land valuations.

 

It was a couple years ago so I can't recall, I think there a few basis adjustments for blocks with location specific aspects.
And yes I meant physical improvements.

 

Consider it a good thing to have a low valuation for rates and land tax purposes. It won't affect your home in terms of selling price - in fact it would be a bonus, particularly for investors. But expect it might go up in 1-2 year's time. And it can significantly jump...

 

I could be mistaken, but NSW land valuations take a 3 year average, which might explain why the growth in land is not as high.

 

The 3 year average is for the purpose of calculating land tax.

What would be better is if they adjusted the thresholds to reflect.... but the slower they move there the more land tax they get to take.

 

Just looked at our rates notice... same time last year our home has a base valuation date of 1/7/2014. This latest one has 1/7/2016.

Rateable value went up 60%....

However, the actual rates went up by only 5.3%

 

What are you looking for in a rates val?

 

It just has the land valuation to base the rates calculation on. Massive land value increase, but the whole area is like this.

 

A secret message

 

its like the davinci code.

hidden within is the secret to whether barnaby joyce is an australian or new zealand citizen.

 

No secret.

 

Remember than NSW uses smoothing for land tax tax. The average of three years values are used for land tax.