I would appreciate if somebody could give me some advice in regard to the following:
Can the Council valuation (the one that appears on the Council or water bill) be used as an indication of the fair property value? How do they determine the property value?
Regards
Gamay[rolleyesanim]
hi, not really – council vals are based on unimprove capital value, and are generally averaged over the last three rating periods.
so, generally, they are less than useless for determining current value.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneHI Gamay
About 9 years ago the CBA was happy to use the Council valuation. Haven’t used them for a long time so don’t know if that is the case.
Brahms councils usually have two figures Unimproved value (land value) and improved value.
As far as using this as a valuation, well usually they are below market value so it wouldn’t be in your interest to use the rates value.
The way banks often work is to have an approved valuer go out and value the property, but sometimes the manager will do a drive past, it depends on the bank and where the home is.regards Westan
USA deals, cash flow equity and capital growth all in one property.
International Property Consulting Pty/Ltd.
Property Investing New Zealand Ltd
http://www.iproperty.net.auThank you Westan,
I am mainly thinking, if I buy the house at the price, which is very close to the Council valuation, would it be fair to say that I have it relatively cheap?
Regards
Gamay
Hi Gamay
in most situations i would say you are right. Phone another real estae agent and ask them what price are homes selling for in comparision to the ratable valuation. Also find out when the valuations were done.
regards westan
USA deals, cash flow equity and capital growth all in one property.
International Property Consulting Pty/Ltd.
Property Investing New Zealand Ltd
http://www.iproperty.net.auI know all about Council Valuations if you’re a SA person!!
Council Valuations are calculated from increase (or decreasing) the original rating base. The base will vary in accuracy from Council area to Council area. If doesn’t take many years for the rating base to lose it’s relativity too.
The general rule is that CVs are conservative, especially in a rising market. This is because they are calculated on Jan 01 in SA.
But do you really want to risk it? I certainly wouldn’t be relying on it, if I was in your situation.
Regards
Investor1313
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