Home owners in Lake Macquarie should receive their new land valuations this week. Land values are assessed every three years by the Valuer General, a NSW Government office, and the information is provided to councils to assist them in the task of setting rates.
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This latest round of valuations shows land in Lake Macquarie has increased by an average of 30 per cent in the past three years. This is good news for home owners because it reflects the increasing desirability of Lake Mac as a place to live, work and raise families.
An increase in land values can sometimes cause people to become concerned that their rates will increase proportionally, but this is not the case.
Council does not receive extra funding when property values increase; the new valuations effectively just change the mix. Some ratepayers will pay more and some will pay less, depending on the new value of their property relative to other properties in the City. If land values increase by 30 per cent across the city, and your block increases by 30 per cent, then the impact on your rates is likely to be minimal.
Only 50 per cent of your rates are linked to your land value, which is known as the ‘ad valorem’ component. The other part of your rates is known as the ‘base amount’, which is a uniform charge that all residential ratepayers pay. Visit our rates information page at lakemac.com.au.
