1 00:00:00,320 --> 00:00:01,600 Speaker 1: Ever do for see Ellen. 2 00:00:01,880 --> 00:00:05,160 Speaker 2: After a huge delay, Aucklands are finally going to get 3 00:00:05,160 --> 00:00:08,440 Speaker 2: their updated property valuations. Auckland Council says the new valuations 4 00:00:08,440 --> 00:00:10,239 Speaker 2: are going to hit your m box in the week 5 00:00:10,280 --> 00:00:13,039 Speaker 2: of June nine. The last cvs were set during the 6 00:00:13,080 --> 00:00:14,920 Speaker 2: height of the house price boom in twenty twenty one, 7 00:00:14,960 --> 00:00:16,200 Speaker 2: so yeah, it's going to be a bit of a 8 00:00:16,239 --> 00:00:18,880 Speaker 2: thing that's going to happen to your inbox. Property commentator 9 00:00:19,120 --> 00:00:22,920 Speaker 2: Ashley Churches with me. Now, hey, Ashley got hea, why 10 00:00:22,960 --> 00:00:24,000 Speaker 2: has it taken so long? 11 00:00:25,000 --> 00:00:27,320 Speaker 1: It's a really good question. The last time they were 12 00:00:27,360 --> 00:00:30,560 Speaker 1: done was July twenty twenty one, so coming up four 13 00:00:30,640 --> 00:00:33,839 Speaker 1: years they're normally three, so that's quite a bit of 14 00:00:33,840 --> 00:00:36,960 Speaker 1: extra time. Having said that, I don't think it's going 15 00:00:37,000 --> 00:00:38,479 Speaker 1: to make a heck of a lot of difference to 16 00:00:38,560 --> 00:00:40,639 Speaker 1: valuations over all, because they haven't moved all that much 17 00:00:40,640 --> 00:00:42,000 Speaker 1: in the past twelve months. 18 00:00:41,800 --> 00:00:44,000 Speaker 2: Haven't they though, Because I mean, you're hearing all these 19 00:00:44,080 --> 00:00:47,599 Speaker 2: yarns about people buying houses. For example, we bought we 20 00:00:47,640 --> 00:00:50,080 Speaker 2: bought when we moved to Auckland. We bought a house 21 00:00:50,120 --> 00:00:52,520 Speaker 2: that was worth We paid less than they had paid 22 00:00:52,520 --> 00:00:55,400 Speaker 2: in twenty eighteen for it. You have massive drops going on, 23 00:00:55,480 --> 00:00:56,920 Speaker 2: so why wouldn't it reflect that. 24 00:00:57,600 --> 00:00:59,720 Speaker 1: So because most of those drops that you're talking about 25 00:01:00,080 --> 00:01:02,520 Speaker 1: put down in some context Auckland prices. And it's really 26 00:01:02,560 --> 00:01:04,120 Speaker 1: important to understand by the way that when I talk 27 00:01:04,160 --> 00:01:06,360 Speaker 1: about Auckland, generically it's a bit unsea it because there's 28 00:01:06,360 --> 00:01:08,440 Speaker 1: different movements in different parts of the city. But let's 29 00:01:08,440 --> 00:01:11,039 Speaker 1: trade it as a whole. Auckland prices as a whole. 30 00:01:11,360 --> 00:01:14,640 Speaker 1: Most of that drop, which has been about twenty two 31 00:01:14,640 --> 00:01:18,520 Speaker 1: percent since it's height in twenty twenty one, happened prior 32 00:01:18,560 --> 00:01:22,160 Speaker 1: to last year. So last year they kind of tape 33 00:01:22,160 --> 00:01:23,720 Speaker 1: it off and just out there. In fact, last year 34 00:01:23,720 --> 00:01:26,080 Speaker 1: there was some expectation that they're actually going to climb again, 35 00:01:26,120 --> 00:01:27,800 Speaker 1: and they look like we're going to for a while 36 00:01:28,120 --> 00:01:29,720 Speaker 1: and then and then of course we had a couple 37 00:01:29,760 --> 00:01:33,319 Speaker 1: of other things that hit us, and the market's just 38 00:01:33,360 --> 00:01:36,720 Speaker 1: wallowed where it is. But there's there's indications that it slow, 39 00:01:36,840 --> 00:01:39,000 Speaker 1: indications that's going to rise. But as I say, in 40 00:01:39,040 --> 00:01:41,920 Speaker 1: the last twelve months hasn't made much difference. Also worth 41 00:01:42,000 --> 00:01:44,040 Speaker 1: noting that even though it's druped twenty two percent since 42 00:01:44,080 --> 00:01:46,480 Speaker 1: twenty twenty one, I are still fifteen percent up on 43 00:01:46,520 --> 00:01:48,560 Speaker 1: where they were five years ago, So you know, a 44 00:01:48,560 --> 00:01:50,440 Speaker 1: little bit of good news there, but it does mean 45 00:01:50,440 --> 00:01:53,000 Speaker 1: that the valuations that people receive in July are going 46 00:01:53,040 --> 00:01:55,440 Speaker 1: to be significantly lower than what they were in that 47 00:01:55,520 --> 00:01:56,280 Speaker 1: last valuation. 48 00:01:56,960 --> 00:01:59,120 Speaker 2: So what is it going to do in terms of 49 00:01:59,440 --> 00:02:03,400 Speaker 2: like that, I think everybody's expecting, yay, my rates increase 50 00:02:03,520 --> 00:02:05,360 Speaker 2: or the amount that I pay in rates is going 51 00:02:05,400 --> 00:02:05,760 Speaker 2: to go down? 52 00:02:05,880 --> 00:02:08,480 Speaker 1: Is it though? Na? And this is a really interesting 53 00:02:08,480 --> 00:02:11,080 Speaker 1: thing because people don't understand really important to understand that 54 00:02:11,080 --> 00:02:13,520 Speaker 1: when the whole point of the RBS is for the 55 00:02:13,520 --> 00:02:16,520 Speaker 1: council to determine, on average what it can charge your 56 00:02:16,560 --> 00:02:20,080 Speaker 1: household by way of rates to fund the various service 57 00:02:20,080 --> 00:02:23,040 Speaker 1: as a council provides to the city. So that amount 58 00:02:23,040 --> 00:02:25,440 Speaker 1: doesn't change whatever it is it is. So if there's 59 00:02:25,440 --> 00:02:28,960 Speaker 1: a decrease in your valuation and that decreases roughly the 60 00:02:29,000 --> 00:02:32,080 Speaker 1: same as other houses in your neighborhood, then your rates 61 00:02:32,080 --> 00:02:34,079 Speaker 1: are going to stay wherever they would have been anywhere. 62 00:02:34,120 --> 00:02:37,080 Speaker 1: It's not going to make any difference to them whatsoever. Conversely, 63 00:02:37,080 --> 00:02:39,440 Speaker 1: if there's an increase in the increase is consistent with 64 00:02:39,480 --> 00:02:41,799 Speaker 1: the other houses in your neighborhood the same appliance. So 65 00:02:42,480 --> 00:02:44,640 Speaker 1: just because your rates go down doesn't mean that you're sorry. 66 00:02:44,680 --> 00:02:46,840 Speaker 1: Just because your health price doesn't go down and your 67 00:02:46,880 --> 00:02:49,160 Speaker 1: evaluation doesn't go down, this doesn't necessarily mean that your 68 00:02:50,080 --> 00:02:51,640 Speaker 1: rates are going to go down as well. It's to 69 00:02:51,639 --> 00:02:53,440 Speaker 1: do with what's happening in the city as a whole, 70 00:02:53,919 --> 00:02:56,520 Speaker 1: not what's happening to your individual value, if that makes sense. 71 00:02:56,600 --> 00:02:58,720 Speaker 2: What are they actually taking into account, Ashley? I mean, 72 00:02:58,760 --> 00:03:00,840 Speaker 2: obviously they're taking into account anything that you do to 73 00:03:00,880 --> 00:03:03,480 Speaker 2: add value, like should you add an extra room or 74 00:03:03,520 --> 00:03:04,920 Speaker 2: a dowage or a pool or whatever. 75 00:03:04,960 --> 00:03:07,079 Speaker 1: But what else, Well, I'm probably the wrong person to 76 00:03:07,120 --> 00:03:09,360 Speaker 1: usk because I'm quite cynical about our V as a 77 00:03:09,480 --> 00:03:12,120 Speaker 1: tool for anything other than setting rates. So as a 78 00:03:12,120 --> 00:03:14,640 Speaker 1: way of council setting rates, they're a great tool, really 79 00:03:14,639 --> 00:03:19,400 Speaker 1: good and relatively inexpensive wave councils determining what they can 80 00:03:19,440 --> 00:03:21,679 Speaker 1: charge an individual household. It's a way of determining what 81 00:03:21,720 --> 00:03:24,000 Speaker 1: your house is worth. I've been of the view for 82 00:03:24,000 --> 00:03:25,920 Speaker 1: a long time they're not much better than toilet paper. 83 00:03:26,080 --> 00:03:28,000 Speaker 1: And the reason I say that is because nobody comes 84 00:03:28,000 --> 00:03:30,120 Speaker 1: to your home, nobody looks at your innovations, and nobody 85 00:03:30,120 --> 00:03:32,160 Speaker 1: looks to see what condition your homes, and nobody looks 86 00:03:32,160 --> 00:03:35,080 Speaker 1: to see if you've made an extension to your home. 87 00:03:35,400 --> 00:03:37,440 Speaker 1: All they are doing is looking at what your last 88 00:03:37,520 --> 00:03:40,280 Speaker 1: valuation was, what the changes in the market have been. 89 00:03:40,360 --> 00:03:42,560 Speaker 1: They stick a fewer logarithms than they're based on some 90 00:03:42,600 --> 00:03:44,920 Speaker 1: assumptions that they make and volor they come up with 91 00:03:44,920 --> 00:03:47,440 Speaker 1: this number, so you know, real estate agents tend to 92 00:03:47,520 --> 00:03:49,400 Speaker 1: use them as a way of determining what houses are 93 00:03:49,400 --> 00:03:52,760 Speaker 1: actually worth. I'm pretty cynical about that because they're really not. 94 00:03:53,240 --> 00:03:55,360 Speaker 1: And when you look at what houses are selling for 95 00:03:56,120 --> 00:04:00,960 Speaker 1: relative to even fresh Harvey straight after it's been issued, 96 00:04:02,040 --> 00:04:03,880 Speaker 1: they tend to be quite a big disconnect. So I 97 00:04:03,920 --> 00:04:06,960 Speaker 1: wouldn't be too concerned about what your say is relative 98 00:04:06,960 --> 00:04:08,360 Speaker 1: to what your house is actually worth. 99 00:04:08,720 --> 00:04:10,360 Speaker 2: Ashley, it's good to talk to you. Thank you about you. 100 00:04:10,360 --> 00:04:12,680 Speaker 2: Look after yourself, Ashley Church, property commentator. 101 00:04:13,400 --> 00:04:16,560 Speaker 1: For more from Hither Duplessy Allen Drive, listen live to 102 00:04:16,680 --> 00:04:19,719 Speaker 1: news talks. It'd be from four pm weekdays, or follow 103 00:04:19,760 --> 00:04:21,520 Speaker 1: the podcast on iHeartRadio.