The Pros and Cons of the Increase in Your Council Valuation
How do you feel about your new Council valuation?
I have already had a few people call me with their new CV figure which, in all cases, was quite a jump and more than they were expecting it to be.
The market values for property in most areas in Auckland and Manukau have changed dramatically since the last Council Valuations were conducted in 2011. There are some people who now cannot afford to pay the new rates increase and who will have to move to either a smaller dwelling or another area. There are also some who may have been thinking of downsize — this is the encouragement they needed to do so as they will effectively be paying for room they don’t use anymore.
Of course, the increase in rating valuations ensures the government gets their slice of the pie — like any sound business would — but keep in mind that in Spain and many other countries around the world, there are property taxes (such as capital gains) as well as your annual rates.
On the bright side, you now have a home that has just increased by an average of 29% (if in Auckland) and there are quite a few people taking the opportunity to borrow for renovations, holidays or buying another place.
There are many parents who are now in a better position to use the equity in their home to help their children buy a house.
So go on, take that well-deserved holiday or treat yourself and your home to a renovation. Whatever it is, enjoy your fortune (but don’t forget to save a bit more for those rate increases)!