Rates and property values: it’s the relativity that matters

I have a very minor quibble with today’s article in the herald titled “Higher rates the flipside of soaring house prices“.

The crux of the article is this redacted quote

If you live in Auckland and neighbouring houses have sold for unheard-of prices in the past two months, you can expect your home’s official value to shoot up.

The flipside? The new values will be taken into account when setting new rates next year.

While I’m not privy to the precise detail of how rates are calculated (nor do I want to be!), my understanding is that the council sets a fixed amount they want to raise via rates, and then allocates that across houses via relative values.

Because the pot is fixed as such, if all house values increase by the same amount, we would expect the share of rates that each house pays to stay the same (this is where I expect someone with an intricate knowledge of rates calculations to jump in and correct me…).

Therefore it is only if your property value  increases by more than other properties, we would expect your share of rates to increase. So if you own a house in an area that has rapidly gentrified since rates were last set (Guessing places like Onehunga, New Lynn etc…), then the share of rates you pay will probably increase, since your property value has likely increased by more than the city wide average.

The first sentence of the article I have quoted is probably getting at this, but I just thought it was worth making it explicit that the general increase in house prices in Auckland doesn’t necessarily mean you are going to pay more rates.

3 replies
  1. lalitha
    lalitha says:

    I like the list. The topic are so helpful that it made me think of
    creating a blog about myself, even though personally I don’t know how to
    create one.

  2. lalitha
    lalitha says:

    Hi ,
    I think your approach is pretty good. Most bloggers won’t have anything as elaborate or systematic as I do.

    Sounds like you have something that works well within your personality and schedule. Perfecto!

  3. margonlineb
    margonlineb says:

    Workshop on Business Communication at the Workplace

    Workshop (25th June 2014) for Professionals who wish to sharpen their communication skills at work.

    Learning Objectives:

    Acquire an Insight into effective Communication at work

    Develop awareness of body language

    How to make an impact when communicating with Decision Makers

    Start using electronic media effectively

    Defuse and manage difficult situations

    Course Outline:

    Understanding communications (Process, Identifying areas of weakness)

    Body language (Non Verbal Communication, Things to watch for)

    Brief and Concise Communication (Key Messages, Communicating with Decision Makers)

    Electronic Communciation (Telephone, Email and IM) – (Etiquette, measuring success)

    Difficult situations (Situations, people, Conflict)

    Additional takeaways

    At the completion of the workshops, all participants will receive:

    Acomprehensive Handout of workshop topics

    Certificate of completion

    A 30-day interaction window with Marg for any questions / queries and
    clarifications on the subject

    For more information and to register for the workshops, contact
    Pooja at +91 903 503 3018 or write to us pooja@margonline.com,

Comments are closed.