Every 2 – 3 years every council evaluates all the properties in its area. There are 3 ways of valuating a property: using Site Value, Capital Improved Value or Net Annual Value.
Site Value means just land value; Capital Improved Value means value of both the house and the land. Net Annual Value is a bit different – it means how much the annual rent would be if the property was leased (less the landlord’s expenses). Usually for residential properties it is calculated as 5 % of Capital Improved Value.
There are 79 councils in Victoria and they use different methods of valuation. Sounds too complicated, right? Wrong! There is an easy way to get the real value of the property (as recorded in council’s books) using council rates that the owner pays.
The Real Property Value calculator is based on the latest 2007 information of all the councils of Victoria. Use it to see what the real property value is – not the blown up market value, not the sky-high asking price – but the conservative estimate, carefully calculated by the council’s specialists. Select the council area property belongs to, enter the amount of general rates in the bill, click on “Calculate” and see what the real value of that property is.
Important! Do not enter the total of rates bill, which includes all the fees such as garbage collection, etc – use just the amount of general rates.