There was a great response
to our newsletter last month,
we are pleased you enjoyed
the read. If there are any
topics of interest you wish
to see in our newsletter,
please email us on the
Contact Us page, and we will
do our best to include the
relevant topic.
Have you wondered how the
process of land valuation is
carried out…..then read on.
We have included information
for New South Wales,
Queensland and Victoria.
VALUATION OF LAND
PROCESS
New South Wales
Valuations undertaken on
behalf of the Valuer General
for rating and taxing
purposes are made under the
Valuations of Land Act 1916.
These refer to land value
only, not including the value
of the home or other
improvements. The land value
does not generally reflect
the full sale price that
could be obtained for the
property.
Most land in NSW is valued
using mass valuation, where
properties are placed
together and valued in groups
called components. The
properties in each component
are similar or are likely to
change in value in a similar
way. Within each component,
at least one representative
property is valued
individually each year to
measure how much the value
has changed from the previous
year. The change in value is
then applied to all
properties within the
component to determine their
new value. Valuers will
inspect and analyse a large
number of sales in a locality
to gain in-depth
understanding of what is
happening in the real estate
market, and the valuers use
this information and their
expertise to value the
representative property.
Where mass valuation is not
appropriate, valuers will
individually value the
property. When comparing
property sales to the land
being valued the valuer will
take into consideration the
location of the land, the
soil type and land surface
(such as slope), town
planning controls and
constraints on use (such as
heritage restrictions), any
rights connected with
ownership of the land (such
as water rights), the land
size and shape and nearby
development and amenities
(such as parks, views, public
transport and busy
roads).
For further information visit
www.lands.nsw.gov.au/valuation/land_valuation_process
Queensland
Each year the Department
of Natural Resources and
Water (NRW) provides land
values in Queensland. A
valuation is an assessment of
the value of a property in
its unimproved condition –
i.e. its natural state,
without improvements such as
houses, fencing, piping and
levelling.
NRW uses a number of criteria
to determine whether a local
government will receive new
valuations. Examples include
market movement and the
length of time since the last
valuation was carried out.
Valuations came into effect
on 30 June 2007. Where local
government areas have not
been valued, the existing
valuations will remain
current.
The unimproved value is the
amount the land could be
expected to sell for in its
natural state, but takes into
account local amenities such
as shops, public transport
and schools. A registered
valuer inspects relevant
property sales as provided by
the titles office and
determines new valuation
amounts. These are then used
to value other properties in
the local government area.
Property owners are required
to notify NRW of land sale
details. This information is
lodged with the titles office
when the transfer is
registered.
For more information
visit
www.nrw.qld.gov.au/property/valuations/index.html
Victoria
Rating Authority
Valuations (RAV) section
within Valuer-General
Victoria (VGV) is responsible
for setting of valuation
standards for municipal
rating and land tax
valuations throughout
Victoria. This includes the
provision of a wide range of
valuations functions, in
accordance with the
provisions of the Valuation
of Land Act 1960 and the
Local Government Act
1958.
A property tax based on
valuation reflects both a
measure of the benefit of
services to each property and
the unencumbered capacity of
that property (not the
ability of the owner) to bear
the sharing of the community
costs represented by the rate
or tax. When all properties
are re-valued, changes in
valuation do not in
themselves signify
corresponding chanages in the
rates payable. The purpose of
regular property revaluation
is to maintain market
relativity between the
properties so that the rates
can be equitably
distributed.
To assess the value of a
property, a valuer must have
a thorough knowledge of the
property market particularly
sales and rentals of
comparable properties. In
addition, the valuer must
understand and apply the
provisions of the Valuation
of Land Act and associated
case law. Councils are
required to be notified of
property sales and
information is obtained from
owners and tenants on rentals
and expenses. A valuer has
the statutory powers to enter
any property and may request
any information “at any
reasonable time” which will
assist to make a true and
correct valuation.
For more information
visit
www.land.vic.gov.au/Land/lcnlc2.nsf/childdocs
|
