After a year delay due to COVID-19, Auckland Council have just released the new rateable values (RV) for Auckland properties, which means your property rates may have increased or decreased, depending on what your new rateable value is.
What Is Ratable Value?
Rateable value (RV) is the ‘value’ of a property set by the local authority for the purpose of determining and allocating rates. It is made up of three components:
- Capital Value (CV) – based on recent comparable sales in the area
- Land Value (LV) – based on recent sales of vacant section in the area
- Value of Improvements – the CV minus the LV.
Auckland Council rates are based on capital value, so in the Auckland region, your RV is the same as your CV. The RV (or CV) is the value of a property at one given date, based on properties that have sold around the time of that one given date. It used to be referred to as a government valuation (GV). The last revaluation was as of 1st June 2021.
Things to Consider About Your Latest RV
Rateable Value does not always take specific features or improvements of the property into account. It also does not take the property’s current income into consideration. RV is purely used to establish the amount of rates your property is liable for. Therefore, we cannot assume that the market value of your property is the same as the rateable value.