Auckland rating valuations jump 33 per cent over 3 years
Auckland real estate investors will want to take note of new figures released this week by Auckland Council that show a 33 per cent jump in property values over the past three years.
According to Peter McKay, Auckland Council's Registered Valuer, the city's three-yearly general property revaluation showed an average 33 per cent increase on property values across Auckland – but in some areas, the increase was even more pronounced.
In an August 19 media statement, he observed that the city's central suburbs saw some of the largest movements – with increases of up to 40 per cent or more.
These communities included the lower north shore, Avondale and Waterview among many other central suburbs. Lower increases were noted in outer suburbs and outlying rural areas. In total, more than 525,000 properties are being revalued in Auckland as part of this three-yearly process.
Rating valuations are calculated by estimating each property's capital value – in other words, the amount of money it would have sold for on July 1, 2014
These figures are then averaged to track overall growth – and local authorities, like Auckland Council, use them to set each ratepayer's individual allocation of overall rates.
But while property values have increased on average across Auckland, Mr McKay said that each home should be considered independently.
"Local value movements will vary due to the type of property, its quality and condition, zoning, views and other factors," he explained.
This is helpful advice for prospective real estate investors doing research in the Auckland market. While general trends can help you make informed decisions about the different suburbs you may be considering, you will want to get down to the specifics of each property's value before you make your final decision.
The right real estate investment advice can give you valuable guidance when you aren't sure what your next move should be. A trusted professional can give you insight into the market and help guide you through the process of investing.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert