Capital Gains Tax

[JBmurc]

That is coincidence.

Rating valuations are done each three years. So for a start you have a +/- between the time of the last valuation and the time of latest sale. Then add the time it takes for the valuation process to run - that may add another 6 months to your total cycle

Now add in the problem that the RV does not include the value of Chattels such as carpets and curtains.

Now add in anomalies in sales. For example an area may not have had any sales.

Now add in the problem with clerical errors - council staff not properly recording details (for example in my renovation they missed of 40sqm of additions)

Now add in natural variance of say +/- 10% for any desktop process.

All this adds up to a number that can be way removed from actual market value.

Add in a lack of back checking. For example two of my neighbours have exactly the same size of land. But there is a $50,000 difference between their two land values. I have 50% more land than these two and my land value is only 10% more.

My RV is about $500k less than current market value. Do I complain. No. Because I am happy paying rates based on this lower level.

But I do have another valuation - and that is for insurance purposes. That's my Sum Insured Value and is much closer to market value

Disc - cant comment on commercial property - But I would think same principles apply

Edit. Just checked Christchurch rates. Last exercise was done with effect from 1 August 2016. New valuations were released on 30 November 20i6. So it took the valuer 4 months to value 167,000 properties. That's going to be accurate. Yeah right!

No seems to be different for Commercial as they haven't had the same price growth like RES has i.e I'm currently looking at one property 20k under RV .. asking price the same as what it sold for 4yrs ago .. R.V has increased asking price has not ..can't say I've come across many commercial way over like RES property in the AREAS I'm looking

we purchased property here in central otago during 2016 RV 550k we paid 560k now worth over 850k etc so yes old RV way off now ..but its all relative no doubt when next RV come out it will be much higher ... just like your property will be ..

I never have thought RV are accurate as like we know they only do them every so many years.. but I still like to see what it is when looking at property to compare to other properties R.V and then of course how high over sales have been recently ...

End of the day value is what someone is willing to pay .... I think many overpriced RES properties with hyped up REG valuations will come unstuck soon enough as the Building bOOM runs its course...

[minimoke]

we purchased property here in central otago during 2016 RV 550k we paid 560k now worth over 850k etc so yes old RV way off now ..but its all relative no doubt when next RV come out it will be much higher ... just like your property will be ..

Your RV will be higher as there will be actual sales data for that property. Where as mine has no sales data - so all they can do is tweak it by whatever % they reckon is right.

Edit. Heres a wee test. Flash house opposite me has just got a "sold" sign put on it. RV = $900,000. Went on the market Oct 2018 under auction - didn't sell. Then listed for $845,000 (around what I thought it would go for) and didn't sell. Now advertised at $798,000. I'll keep an eye out for actual sale price

[JBmurc]

Your RV will be higher as there will be actual sales data for that property. Where as mine has no sales data - so all they can do is tweak it by whatever % they reckon is right.

Edit. Heres a wee test. Flash house opposite me has just got a "sold" sign put on it. RV = $900,000. Went on the market Oct 2018 under auction - didn't sell. Then listed for $845,000 (around what I thought it would go for) and didn't sell. Now advertised at $798,000. I'll keep an eye out for actual sale price

Yes we got new RV last year i think it was upto 690k I see these days the banks uses some online instant valuer I guess like QV.co.nz can do early last year the bank believed are property was worth $815k ...insane lift in value... if the misses would allow me I'd list it for $850k and if sold go back renting for a year or two as these values aren't going to last

[iceman]

Yes we got new RV last year i think it was upto 690k I see these days the banks uses some online instant valuer I guess like QV.co.nz can do early last year the bank believed are property was worth $815k ...insane lift in value... if the misses would allow me I'd list it for $850k and if sold go back renting for a year or two as these values aren't going to last

I was at my bank the other day and they used www.homes.co.nz for instant valuations

[minimoke]

I was at my bank the other day and they used www.homes.co.nz for instant valuations

Its quite a good site - but there is about a six month lag between sale and the new records being shown on the property. I use it as a broad guide - but to try and get a firmer idea on value you need a few more sales. Fine if you are in an area with lots of sales. Not so good if they are infrequent.

[iceman]

Its quite a good site - but there is about a six month lag between sale and the new records being shown on the property. I use it as a broad guide - but to try and get a firmer idea on value you need a few more sales. Fine if you are in an area with lots of sales. Not so good if they are infrequent.

I know. My area goes up and down quite a lot on this site due to infrequent sales and a mix of older less expensive homes and a newer part of the suburb with much more expensive homes. But I suppose all online tools will have that same issue

[artemis]

Its quite a good site - but there is about a six month lag between sale and the new records being shown on the property. I use it as a broad guide - but to try and get a firmer idea on value you need a few more sales. Fine if you are in an area with lots of sales. Not so good if they are infrequent.

Can also get property estimates from Trademe, including rent estimates, where the sources of data are clearly spelt out. Not sure how the data sources compare to homes.co.nz but easy to compare anyway. Trademe has a lot of data from their many thousands of listings, and also produce quite comprehensive sale and rent analyses each month.

[JBmurc]

I was at my bank the other day and they used www.homes.co.nz for instant valuations

right that's why the bank is open to lending me more funds as looks like homes.co.nz values property even higher than I did>>

[minimoke]

right that's why the bank is open to lending me more funds as looks like homes.co.nz values property even higher than I did>>

Getting a bit off topic here but HSBC have got two years at 3.69% Loan needs to be for $500k though.

[JBmurc]

Getting a bit off topic here but HSBC have got two years at 3.69% Loan needs to be for $500k though.

Yes just brought that up on PT forum >>> and did call HSBC up to see how hard it would be to shift waiting on a callback...

be good to least be able to take the offer to the current bank and see if they can match the deal ..on current loans 3.69% would be a saving of over $3k pa