There were a whopping 10 million searches of the Auckland Council website on the first day the new rates valuations were released in late November.
Up by 45% across the city, and much more in some places, the 2017 CVs are as interesting – but inaccurate as ever. There are several important factors to remember when it comes to CVs:
Each house isn’t assessed individually; it’s essentially done using an algorithm.
The longer you’ve owned your property, the more out of alignment the CVs tend to get.
The date of the value is July 1, 2017 – the market may well have moved in your area since then.
What does a higher CV mean for you? On the plus side, it supports a higher value for your home and it often removes the bank’s insistence on a valuation when assessing your borrowing (which can save you about $600). Leveraging your new paper equity into an investment property is one of very few ways you can capitalise on the theoretical gains you’ve made. While they might be fun to talk about the real net value of these rising CVs is that your costs will go up when new rates are released in 2018.