Rateable value (RV) is an essential metric used in real estate across New Zealand. In the New Plymouth District, the RVs were updated in early 2023 and in most cases, we saw a significant increase in value.
So what is a rateable value (RV) and how does it differ from market value?
In this article, we delve deeper into the concept of rateable values and explore the impact they have on a property. We also explore ways to identify the market value of a property and unpack common real estate terminology to help you understand where your property currently sits.
Rateable value (RV)
Rateable value is a metric used by councils to determine the rates of each property in the district. The law requires all councils or valuation service providers to revalue properties within their boundaries every three years.The revaluation assessment considers three components:
- Capital Value (CV), based on recent sales of comparable properties in the area.
- Land Value (LV), based on recent vacant land sales.
- Value of Improvements, which is CV minus LV.
All properties in a local council area are assessed by the same date. This ensures the same process and market trends are applied to each property in the area. The timing and schedule for each district’s revaluation will vary, so you will need to check this with your local council.
New RVs for Stratford District are expected to be released later in 2023. For South Taranaki District, new RVs are expected to be released in early 2025.
How to find your rateable value
To calculate the rateable value, the local council conducts a mass appraisal of the properties in the area that have sold recently.
Then, to calculate each home’s individual rateable value, they compare this data to the property specifications. Properties are primarily rated on size, location, age, and construction type. As they are calculated on a mass appraisal basis without a valuer stepping into each individual house, the RV is less likely to take into account views, floor plans, renovations and the overall presentation of a property.
To find your property’s RV, simply search the address on the QV website.
The impact of RV on your property
There are two main impacts the RV can have on your property. These are the property’s value and the rate payments.
Property value
RV reflects the council's estimation of the property's worth. This gives potential buyers a metric to assess the property, impacting their perception of its value. To determine your property’s value, see our explanation below.
Property rates
To calculate the rates homeowners must pay, the council conducts a rating valuation every three years. This assesses the Land Value (LV) and the characteristics of the property to find the Rateable Value (RV).
In general, the higher the property value, the higher the rates bill. Any changes to Land Value can significantly impact the rates you must pay for your property.
How to object to a new RV
If you feel your property’s new RV does not reflect its market value, you have the right to object. To do this, you need to submit an objection online or by posting a letter to the property valuers that completed the valuation.
You can see a recent QV objection process here.
You must submit your objection within the official timeframe. Usually, the last date for this is around six weeks from the initial release date of the new RVs. In response to your objection, a property valuer will physically inspect your property. Based on their findings, you will receive an owner's notice informing you of the decision.
New Plymouth rateable values
In early 2023, QV released the updated RVs of the district, with an average increase of 49.7%. These are reviewed every three years, with the last revision happening in September 2019.
New Plymouth rates are set on 1 July each year in line with the Annual Plan. If you are a New Plymouth District ratepayer, you will pay rates for both New Plymouth District Council and Taranaki Regional Council.
The primary influence on New Plymouth properties is land value. Typically, only property owners with a higher valuation increase than the average increase will pay a larger proportion of rates.
You can access the most recent valuations by visiting the Civic Centre.
How to find a property value
As well as the RV, the value of a property will vary greatly based on several factors:- Location and zoning
- House size
- Age and condition of the house
- The current economic climate
- Supply and demand
- House features
There are several online tools like QV that give you a rough estimate of your property’s value. These use public information and algorithms to estimate a property’s worth, which means they aren’t always accurate. For a reliable valuation, you need a professional property appraisal.
Taranaki property valuations
For a property valuation in the Taranaki region, start with our online tool. The map will show properties currently listed in your area, including those that have recently sold.
You can click on each property for a full description.
Get a Taranaki property valuation ›
Property appraisals
Online tools provide a helpful starting point but an appraisal from a professional is far more accurate. They draw on market knowledge and a range of data sources to produce a thorough report tailored to your property.
At McDonald Real Estate, we provide free appraisals for any property in the Taranaki region – no strings attached. Contact our team today to organise your free property appraisal or to chat with a member of our team.
