PHOTO: Properazzi
The government valuation of a property, otherwise known as the rateable value or sometimes known as the CV in the case of Auckland, is the automated process whereby a value is applied to every address (comprising a land value and an improvement value) in an effort to fairly apportion local government rates. Like it, or hate it, rates needs to be levied on property / land owners and the method most commonly used is apportionment based on value.
As to the value or relevancy of this automated valuation in relation to the market price of property for sale, that is a subjective debate. Especially nowadays given the freely available automated valuations from the likes of Homes, Trade Me Property Insights and MyValocity. These valuation assessments are updated at least monthly whereas the process to establish rateable value is only undertaken on a 3 year cycle.
That being the case you would assume that the notion of a rateable value had become somewhat obsolete, relegated to the museum, much like Imperial measurements. That’s far from the case as the media is awash with references to RV / CV and no conversation with prospective buyers at open homes is complete with the question as to the property’s current CV.
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