Have your rating Vals gone well

Posted on Friday, November 18 2011

Have your Council Rating Valuation gone well?

 

Well accordingly to the news papers 2 weeks ago quoting QV stats, Auckland is surging ahead whilst the rest of the country is stagnant; then a week ago they report, using the real estate stats, that exactly the opposite is happening. A bit like the poll results for Labour although for them it’s a matter of being down, or less down – but never quite achieving the status of the Grand Old Duke of York being neither up nor down. And just as you were beginning to think the papers have nothing but contradictory nonsense, the journalists seems intent on proving this beyond any doubt- this week the newspapers seem obsessed with a storm in a teacup, that is some inane driveling chatter over a cup of tea that we’re supposed to want to know about.

So what’s the real deal with the market now we’ve secured the world cup we all knew was ours (albeit for a nerve-wracking hour or so at the end) Pretty much more of the same as what’s been happening all year, that is plenty of activity from first home buyers, slow but steady demand from investors enticed by solid yields, still pressure on rents and prices to increase. If you’re an economic commentator you’ll probably be a bit jittery about the economic wheels falling off Europe due to non performing Greece but first home buyers are still presented with increasing rents vs low interest rates and a property market that increasingly looks to be getting out of reach if imminent action isn’t taken. I do think however that once the distractions of Rugby and the Election are behind us, and folks have had a good summer break, that listings will increase somewhat to soak up that excess demand. This would be a good thing for many with buyers having more choice, Valuers and agents busier with more turnover. Still hard to see any drop in values with building levels still at record lows.

But where is good value for investors? It seems anything with a sleepout these days is pulling a fantastic rent, yields of 10% now more frequent especially when a buy and reno strategy is implemented. Two years ago I cited Mangere East as a good area for capital growth which has in many cases now become a bit pricey for investors. For some time I have considered Mt Wellington good value with potential for growth and revitaslisation due to its central location. It seems there has been quite a bit of value increase in Mt Wellington South previously considered a ‘low cost’ area but now defying that label with many properties now achieving in the $400,000’s. The only areas that really seem to have been stagnant are Papakura East/ Redhill, Clendon and Otara. The’re not everyones cup of tea but eventually the wave of property increases with ripple through – especially Otara which is conveniently located to many amenities including a 10 to 15 minute trip to the city in light traffic conditions.

Aucklanders should have received their rating valuations by now, bit of a mixed bag – the ones for my properties seemed ok although I think they missed the increase in value of some 15% the shoebox apartments increased over the first half of this year. Remember that rating values should, at best, provide a general guide and any online type valuations you get are based on a % up or down from the current rating valuation. The council don’t employ elves to sneak down your chimney and check out the inside so don’t lose too much sleep if your $50,000 renovation isn’t reflected in the latest rating value – generally best to just enjoy the lower rates bill. Unless you are selling and the rating value could influence some buyers in which case having a realistic figure would be useful. In this circumstance it would be advisable to get a Registered Valuer to prepare a report to assist in the objection process, which can also be used in the selling process.

Rene McLean.

 

 

 

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Property InDepth Rene McLean

Rene McLean - Auckland Franchiser. Property InDepth is New Zealand\'s only fully franchised property valuation and property consultancy service. The only valuation service that can provide comprehensive reports to you, within hours of completing the inspection. So relax and enjoy the experience, that's what we are about.

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