Monday, October 20, 2014

It Is Not A Freakin Valuation.




It used to be Government Valuation and was arrived at with an inspection at revaluation by registered valuers working for the provider that was called "The Valuation Department" headed by The Valuer General and had a Minister of the Crown in Charge.

Then it Became The Rating value and was set by bureaucrats working for one of many contractors hired by a local body to set the RV made up of Land value, Value of improvements which totaled to become the rateable value.

By now it was as far removed from any semblance of a value of a property as was imaginable with the arbitrary figure arrived at on historical grounds that only merged with reality when a sale occurred and the sale note was lodged as part of the system.
Such info took little note of how motivated seller and buyer were, the degree of ability of the sales person involved and any manipulations of chattel values arranged for tax purposes , estate purposes, or other sometimes nefarious factors.

As a valuation system it has always relied on a property sale, and or appeals to alter  the arbitrary valuation that could be motivated by any of many desires.

As a true value of a property it was as intelligible as melted ice in desert sands.

GV has become a "Rating index" only, used to apportion rates over wide variations of service, cost and access to facilities that may or probably wont have much relevance to what a willing seller and a willing buyer might agree to as a value for transfer of property ownership via the title.

Current 'Rateable Value' has very little relativity to the 'Market Value' of any title although the two figures might get close at times often by chance.

2 comments:

Tinman said...

From memory it started as unimproved value meaning whether you lived in a mansion or the hovel next door you received the same roads, footpaths, water, rights to the .library, rubbish collection, bus service etc. and paid the same amount for them.

Then the wanna-be communists poked their noses in..........

Anstice said...

Record prices for Rams or Bulls used to be paid by buyers who, in turn, sold similarly highly priced livestock to the vendor.

It is a valuation, Jim, but not as we know it.