Because of the recent (QV) Ratings released by the City Council I asked Quotable Value Limited who carried out the valuation on behalf of the local authorities - how did they get to this figure?

I was told that the basis for these CVs are City Council’s records and sales figures in the area of residence. Sales figures we get daily from the Real Estate industry. Sales appraisals take the average value of the worst house in the street with the value of palace across the road by lifting up the value of a “dog house” and penalize owners who take care and improve their property.

Understood - the market (demand and supply) determines the price, but what has the market sentiment that drives property prices up or down to do with the (QV) Rating and the related services?

Right - why should a rate payer be worried?  On the (QV) Rating paper is stated that this valuation is the basis for levying rates, thinking the council rates drop, too - wrong!

The contradictory answer from City Council’s Rates Department I received was that the rates are based on services not on CV. That is also quite interesting because despite increasing levies compared with the previous years the services or in other words the problems are still the same.

Here in that real example, a CV dropped from 370k to 330k. Calculated with the rates assessment for 2010/11 of $1997 the rates have increased by more than 12%. When considering 15% GST, because the valuation is deemed to include GST as well, the increase in rates goes up other few percents. So I can’t see any drop of levies. Confused?

Does the rate system really work for the rate payer or is it another rip off?

Think about – it’s your money

Klauster