Assurance over rates rises with new property values

Homeowners worried a big jump in property values could add fuel to future rates hikes do not need to panic just yet.

A three-yearly review of capital values for Dunedin housing is being carried out by Quotable Value staff.

The work by QV is for the Dunedin City Council, which uses the information as part of the calculation of each homeowner's rates bill, rather than as a reflection of market value.

The last review was carried out in 2016 and average property prices have continued to climb since then, most recently by 12.1%, to reach $447,000, in the year to June.

However, DCC finance and commercial general manager Dave Tombs said homeowners should not automatically expect a big jump in rates as a result of QV's work.

Property values were just one factor in the calculation of rates, and the impact of any change in property value on an individual homeowner's rates bill would depend on what happened across the rest of the city, he said.

Homeowners whose property values increased by the same amount as the city-wide average would have no increase in their rates, all other things being equal, he said.

Homeowners whose property values increased by more than the city-wide average could expect to pay more, while those who saw increases of less than the city-wide average could expect to pay less, he said.

"If the rest of the city goes up by 10% and you go up by 5%, your obligation will actually go down."

Homeowners would receive notification of their new capital values in early November and the results would influence rates for the 2020-21 financial year.

 

Comments

In the end the rates should be decided by the costs of maintaining infrastructure, not the value of the city.

 

september_carousel_header.jpg

september_carousel_footer.jpg