All local homeowners will have recently received their rates notice from the City of Melbourne. Many rates notice will include an increase in price.
Rates are determined by two factors: the local council budget and a valuation of your property by council.
The local council budget
Each year your local council sets a budget to determine the cost of delivering services and programs to the local community. Should your local council increase their budget then the cost of your rates will also increase.
The property valuation
All councils are required to revalue properties every two years, with new revaluations undergoing an audit approved by the Valuer-General Victoria. The new figure (Capital Improved Value or CIV) is clearly identified on valuation and rates notices and is based on an assessment or calculation given by qualified valuers that considers factors such as house location, land or apartment size and condition.
When a home’s value has increased more than the local residential property average, an increase in rates will reflect more than the local council’s budget increase.
Whilst council rates often seem to be an expensive outlay, they help connect our city’s people and places, supporting strong communities and local businesses. Exciting upgrades to our local area from our rates this year include the Queen Victoria Market renewal, Metro Tunnel project and improvements to Southbank Boulevard and Promenade, alongside further road, footpath, park and bicycle track upgrades.
Many homeowners are excited to learn that their property is worth more than the council’s opinion.
To find out how the current market value of your home compares with the council’s Capital Improved Value, contact your local property experts today on 9091 1400 for a complementary comparison.