Hi All
I have found a property I want to possibly buy. Its in the 185,000 range with a UCV of 78,000. The house is an average low set 3 brm post war home, polished floors old kitchen & bathroom and laundry is an external room.
Now my question is if the UCV is only 78,000 then theoretically the house is worth about 100,000.
The median for the street is 188,000. I am guessing but you couldnt buy a block of land for under 120,000.Am I paying too much? or have I analysed this incorrectly.
thanks
Rick[biggrin]UCV bears (almost) absolutely no relation to the selling price of land. It is a system used by State and Local Governments for the rating value of property ie what they basis of council rates.
UCV is a statistical determination method of establishing land values having taken into account all sales in an area then adjusting (theoretically) for the development component, scarcity factors etc.
Refer to the recent court case of Maurici v NSW Govt (Land Tax Commissioner) whereby the plaintiff won the case due to the fact that the valuation did not take into account the lack of vacant/unimproved blocks in a typical inner city suburb of Sydney.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
