Your New Auckland Council Valuation Is Done
The rateable value for your house is set by the local authority for the purpose of determining and allocating rates. It is calculated every few years based on the general value of houses in the area and some key housing statistics and is used by the Auckland Council to set the rates you pay for the privilege of owning a house.
The new Auckland Council valuations have just been updated and were due out on Monday 10th November.
Unfortunately the Auckland Council website could not handle the amount of enquiry and crashed so people have been unable to check what the new values are. The Auckland Council has said they will now be posting these new valuations out so with the “efficiency” of the Auckland Council and NZ Post we should see these values before Christmas – seriously we should see them this week!
Does your property’s new rating valuation accurately reflect its current market value?
This is always going to be controversial – everyone has a different opinion.
A homeowner and a buyer will no doubt have different ideas on the value of a property, and even real estate agents find it hard to agree.
There is nothing new in this!
How Accurate Are The New Council’s Valuations?
The council valuation of a property is a good rough-guide of value but can be completely inaccurate and therefore at times seems irrelevant.
The rateable value doesn’t usually take into account anything that makes a property better or worse than others in the area meaning that often the rateable value of the worst house can overstate the value, where the rateable value of the best house in an area can be lower than the true market value.
The best way to get a true market value is to engage a registered valuer who will inspect your individual property, measure and assess the property before comparing sales of similar properties to establish the market value of your property.
Why Should This Matter To You?
Some people are happy to receive a lower valuation as this would suggest that your rates may be lower too; however if you plan to sell your house within the next 3-years you may find that potential buyers assume that your house is worth less than other similar properties and therefore the price you end up being paid may be lower.
Banks also take notice of your council valuation and mortgage brokers can often use this to show the equity that you have in your property which helps when negotiating better interest rates for you. Stuart Wills says that we all like to think that we have value in our homes, but there are some valid reasons to want an accurate valuation.
Auckland Council Can Often Get Values Wrong Too
A rateable value is the council valuation and these can seem wrong, especially when a house has been very recently renovated, or when a property is unusual. Home owners can choose to get their house’s rateable value re-assessed by the local council if they feel that it is incorrect (too high or too low).
If you think that your engage a registered valuer who will provide a written report with an assessment of the market value of your property. There is a limited in which you can make an objection should you believe your valuation is wrong.
You only have until 19th December to object.
Opportunities With New Valuations & LVR Rules
If you had a mortgage that was close to or over 80% of the property value that the bank have then you are unlikely to be getting the best interest rates that the banks are offering.
In addition many banks have not allowed you to top-up your mortgage and instead have provided personal loans or vehicle finance where they can charge you higher interest rates. Having a new and higher property value may provide the opportunity to consolidate any of that more expensive debt.
There has been talk recently that the LVR restrictions may be relaxed or even lifted totally; however this is still speculation and no detail is available yet – it may be announced this week so we will update you when something is announced by The Reserve Bank.
Saving Money On Your Home Loan
We all like to save money and to own our own homes.
It doesn’t really matter who you are, what income you earn or what your employment is, even laborers, taxi drivers, private escorts, accountants, solicitors and priests understand the value of money and get frustrated when they see the banks continue to announce record profits while they are being charged more than needed by their banks.
Banks are money making machines and you should always try to minimise what you pay with interest and fees.
You Should Speak To Your Mortgage Broker
If you have any questions or feel that you may be able to improve the way your debt is structured and the interest rates you are being charged then you should speak to your mortgage broker who can provide answers to most questions regarding the new values and your current mortgage structure.
Many of the better mortgage brokers like those at Mortgage Link can show you how to take advantage of the higher values and pay your mortgage off faster or use the increased equity to buy an investment property which over time will increase your wealth.
Why not speak to your bank?
A mortgage broker will look at the best options for you and knows what all of the banks can offer, so should have better power to negotiate with your bank. As a mortgage broker Stuart Wills has often been able to have the banks reduce the interest rates purely due to the knowledge of the various banks offers and his persistence at making the banks offer true value.
Don’t settle for what your bank offers without asking for a second opinion from a mortgage broker.
CLICK HERE to check your new Auckland Council valuation.