Rateable Value and your Property
If you are a property owner, then in the next few weeks Marlborough District Council will be mailing you notification of your new rateable value.
We often see R.V.s that are well below the market value of a property. Owners say they are happy with a low R.V. because they think they pay less rates – which is not ALWAYS the case.
There are 2 parts to your rateable value.
Rates in Marlborough are assessed principally on your land value.
Improvement value has hardly any effect on the amount you pay in rates yet this has a significant effect on the value of your property if you were to sell or borrow against it.
A low R.V gives the buyer a wrong idea of your property's worth, yet all the online property valuation engines and banks use R.V.s as a major component when assessing market value.
Imagine two houses side by side, built around the same time with the same sized floor plan, cladding etc and on the same sized land. One had major improvements done including new kitchen, bathroom, carpets, drapes, repaint and landscaping. The other is the same as the day it was built.
Chances are, the computer that pumps out the new R.V.s will come up with the same value for both properties, based on their land size – the computer algorithm will have no idea one has had a substantial sum spent on renovations, yet if you were to sell them, the two homes would clearly have significantly different market values.
It’s important that you have the right improvement value included in the R.V of your home - it’s easier to borrow from the bank and you will get a better price when selling.
So, when you R.V arrives, contact us and we can have a quick look and see if your R.V reflects current market values and shout you a coffee in the process.
We can also help you with the information needed to lodge an appeal to get your R.V reviewed to a realistic level.