New Government valuations are out. What does it mean for your house? Not a lot unless your suburb has moved up in price more quickly than other suburbs. In which case expect a bit more in your rates bill.
Does it mean you can borrow more?
No – the banks have been using systems to ascertain a rough valuation on your house. Generally called an Eval or desktop valuation which has given them a more accurate picture of your equity. They have not been relying on a government valuation for some time.
Can you sell your house for more?
There has been the odd client of mine that seem to carry a rule – 20% over CV or 10% under CV for example. This kind of rule keeps changing rendering it almost useless. I have been ignoring government valuations for the past decade. Instead relying on other tools such a registered valuation and recent sales data from RPNZ.
Is my rates bill going to shoot up?
The Government Valuation or Rateable Valuation only gives a yard stick on how to distribute the rates bill. So if your suburb has gone up faster than other suburbs than you can expect a higher bill. If your suburb has gone up slower than other suburbs expect a decrease (yeah right).
Areas in South Auckland have moved faster than others, I believe these suburbs may see more of an increase.
