A Timaru homeowner fears Quotable Value’s (QV) new valuations will push her rates even higher in 2021.
South St resident Pam Booth-Waite said she finds “it hard to believe” the value of her land as gone up 40 per cent since 2017 but the value of investments on her land have dropped 44 per cent.
“People look at their QV and think things have gone up, but they don’t look at the VI down the bottom, the value of investments for their house, garage,” she said.
According to QV’s recently released valuation figures, since 2017 the value of residential housing increased 11 per cent in Timaru while the average land value had risen 26 per cent to $189,000.
The total rateable value for the district was $15,143,176,000, for 22,966 values with the properties’ land values $7,706,422,000.
The Timaru District Council, which has forecast a 10.5 per cent rate rise in its draft Long Term Plan , would set its rates for the next three years in July based on land value.
“I know values go up and down, but the values have been taken off the homes.
“There will be a rates increase and everyone will throw their arms in the air.
“I can appreciate land is more scarce but not housing shrinking in value at the same rate.”
Timaru resident Deb Booth, and her husband, could also not understand the variation in values for their property in Otipua Rd.
“Our home is dropped in value $23,000 and then the land value has gone up $50,000. An old work colleague of ours in North St has the same thing.
“How can you devalue the house when you’ve spent time and money painting and redecorating?
“I can understand the land value going up and rates going up, but our biggest gripe is the value of the house going down. They’ll say it doesn’t affect your insurance, but it will.”
A QV spokesman said they would be happy to talk with these property owners.
“If they’d like to give our team a call, we’re seeing quite a lot of development in the south end of Timaru, with newer dwellings coming onto the market at relatively affordable price points.”
He said a strong demand for land in Timaru district meant land values had generally increased at a greater percentage rate than capital values, resulting in a decrease in the value of improvements for some properties.
“If these owners do not agree with their rating valuations, they have a right to object through the objection process before March 19, 2021.’’
Booth-Waite said Wellington was facing the possibility of a 17 per cent rates rise from July as infrastructure costs increased, the biggest annual increase in a quarter of a century.
She was concerned by the big developments being lined up by the Timaru District Council – the CBD development and the Theatre Royal and heritage precinct projects.
“I feel the main role of council is infrastructure, collecting rubbish, looking after roads not being in real estate like Timaru District Holdings.”
“They bought a heap of old buildings I didn’t want (as a ratepayer).”