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Buying a House in New Zealand

What's the real property values?
Property Values | Government Valuation | Rateable ValuationWhen you are looking for your ideal property you will be told may values of the property. There are two property values to be concerned about.

The Government Valuation (GV), also known as the Rateable Valuation (RV). This value is placed on the land and buildings so local councils can figure out what rates a householder should pay every year. It is usually a fair value of the property.

When you come across a property that is for sale for double the GV, an agent will usually tell you that the GV has little bearing on the actual value of the property that it is just a guide and should not be taken into consideration. However if you find a property that is being marketed below GV, watch how much importance an agent will put on this fact then.

The other valuation is the Registered Valuation (RV), now you can see when the confusion may arise. The Registered Valuation, is a valuation which the property owner will pay for, therefore the valuer in this case is somewhat bias to the concerns of the person paying them and may bump the value of the property over the valuation the government has placed on the property.

Many times a property will be marketed with an RV price. Make sure it is clear if this is a Registered Valuation or a Rateable Valuation.

I am not saying you should buy at GV, there is many times where the government have not updated their valuation of a property and many improvements have been carried out. It would be wise to check when the last valuation was carried out on the property and determine if any improvements have been made since to justify the difference between the GV and actual asking price. GV tends to have little bearing on price when the market is booming, but hen the market is in a buyer stage it is possible to get properties for GV or less.

Buying at GV or less means you have already gained from equity in the property as the GV is the minimum the property will ever be worth.

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