GV - an example
It's been pointed out that Philip Field paid $59,000 over GV (Government Valuation) for the Coles' house and that this is evidence that he was being a Good Guy and not taking advantage.
Frankly I feel there are other reasons to get rid of Mr Field, quite apart from recent revelations. However let's get one thing straight.
GV, Government Valuation, is actually now called RV, Rateable Valuation. It is the value of the land plus the value of improvements at the time the last round of valuation was done.
In Auckland RVs have been miles out for some time. Point in case - a particular property I am aware of that is worth probably $300 - 320K in the current market is currently given an RV, on the Auckland City Council website, of $221K. This is not a property in a particularly volatile area.
That said, I don't know the ins and outs of the Cole house. On the plus side of the ledger for Mr Field is that a turnaround of the magnitude he gained for the property, especially if it was done up, is in-keeping with the Auckland market in recent times.
Just another little piece of info for the debate.
3 comments:
In Palmerston North, the baseline in the decent parts is to ask for $100K over RV.
Claiming that Feild was not taking advantage because he bought the house for above the GV or RV can be misleading, especially if the house had not been valued for a number of years.
As I understand it houses are valued every 5 years.
Unless the GV or RV was very recent, such valuations are irrelevant. In order to show he was not 'taking advantage' Field needs to show he paid a fair market rate for the house at the time he purchased it. This does not appear to be the case.
Properties in Auckland are going for 40-60% above RV currently. Revaluations for rating purposes are happenning soon.
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