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Melbourne. How accurate is your council rating valuation?

Discussion in 'General Property Chat' started by Jjjjj, 1st Sep, 2016.

?

How accurate is the council valuation

  1. On the money

    11.8%
  2. Council val is lower

    70.6%
  3. Council val is higher

    17.6%
  1. Jjjjj

    Jjjjj Member

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    we have purchase three properties recently in the last 12 months. We have just receive the New council valuation. Property one is abt 3 % below our pp (bayside) . property 2 is above 22 % above our pp(Moreland). property 3 is about 12% below our Pp (stonington) I guess it kind of evens it out. But I would like to know how accurate is the council valuation in general consensus.
     
  2. Agent30yrs.

    Agent30yrs. Well-Known Member

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    I can't comment on local govt, but in Qld if you subtract the properties satellite co-ordinates from the neighbours telephone number and divide it by the number of ants nests on the property you will probably get a more accurate calculation of it's value than you will from the valuer general.
     
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  3. S.T

    S.T Well-Known Member

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    I've challenged two of my council valuations, just sent off the forms today with refinance valuations obtained around the same time. One of the council's wants to come inspect my place to value it, they won't take my lesser value that I paid at auction for it 5 weeks prior.
     
  4. Big Will

    Big Will Well-Known Member

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    I tend to find lower as they don't want the admin/paperwork of doing revals all the time. Mine is 10%+ lower than what a bank values it at.

    If you are buying crappy properties - e.g. a property that is on main road, with large power lines behind it, flood prone and unrenovated house you probably will find their valuation are higher.
     
  5. alicudi

    alicudi Well-Known Member

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    Hi

    I am very interested in hearing the outcome in your situation. I think you are in a very strong situation to prove the council valuation is wrong.

    Regards,

    alicudi
     
  6. S.T

    S.T Well-Known Member

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    Will update the post when I know. The valuer from the council was quite arrogant on the phone, especially with the 'threat' of having to do a walk through valuation.
     
  7. Ghoti

    Ghoti Well-Known Member

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    Interesting. My PPOR rates CIV (supposedly Jan 2016) is 3% higher than what I paid at auction in Apr 2016. And the property is significantly below average condition. Will have to call council.
     
  8. S.T

    S.T Well-Known Member

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    You could try and get a copy of the banks valuation too, most of what they ask you to fill out on the objection form is the same.

    Remember you're stuck with the valuation for 2 years, so sometimes it's worth a challenge. Can impact your land tax bill if they're IP's.
     
  9. alicudi

    alicudi Well-Known Member

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    Hi

    I might actually be wrong and would like to be corrected if I am wrong but I was under the impression that the council rates valuation and land tax valuation cam be different and are worked out separately? One is a valuation for tax assessment purposes and one is not.

    Can anyone confirm this?

    Regards,

    alicudi
     
  10. Joynz

    Joynz Well-Known Member

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    There was a post about how land tax is calculated recently on th forum...
     
  11. S.T

    S.T Well-Known Member

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    Nope, they're based off the council valuations in Vic.

    Council valuations
     
  12. S.T

    S.T Well-Known Member

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    I've had a win with one council, they will adjust value down as per a bank valuation I got around 4 weeks prior to the council valuation date.

    Second council sent me an automated letter wanting to do a valuation/inspection of the property. I managed to talk to the valuer, they're going to review my two valuations and sale price and shouldn't require the inspection.
     
  13. JacM

    JacM VIC Buyer's Agent Business Member

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    Yes I have sometimes looked at the vals and thought seriously? The land wouldn't sell for that on the open market. Yet once the val is in place, it affects council rates and land tax. I can't wait till someone challenges it in court, and wins back payments, emotional distress payments etc etc
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Council values are for rating purposes and generally aren't meant to resemble anything in reality. This is your contribution towards paying for the services provided by council - roads, footpaths, libraries, parks, garbage collection, seat warmers, parking control, building & health/foodie/restaurant inspection etc.
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    @Jjjjj - shhhhh!

    You don't want the council knowing that they're undervaluing your assets & not charging enough for services. :oops:
     
  16. Ghoti

    Ghoti Well-Known Member

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    Decided not to chalkenge rate valuation as the net reduction in rates would not be worth the effort.

    But I have subsequently received a letter from City of Monash apologizing for the rate increase and urging me to sign their petition to cap valuation-driven rate increases.

    Time for government to
     
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  17. JacM

    JacM VIC Buyer's Agent Business Member

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    While that is true, the figure still dictates the rates bill and land tax bill. When you watch rate bills go up 11% every year you start to get extremely ticked off.
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    Victoria uses its system differently to NSW - the OSR uses the ucv or land value not including improvements though there was some recent discussion in Parliament to change this.

    I also have seen separate land tax & rates charges for different land users on the same parcel of land eg. Company 1 occupies 950m2 (office and parking) and company 2 occupies 50m2 (telco hut & phone tower) on another lease. Both are hit for rates & land tax.