House price craziness will lead to rates pain

The recent influx of mainland and other investors into our real estate market has increased house prices to a ridiculous and unprecedented level. The problem that will confront local homeowners in future, who’ve had nothing to do with this craziness, is how they are perceived to be able to pay their increased local council rates, once revaluation of properties hits the fan by government valuers. For example, how will most pensioners and income-similar in the community be able to meet the cost increase? Maybe it’s time for a stringent review of the current assessed annual value calculation method for rates. A suggested example would be to legislate to freeze current levels of rates and to only allow the CPI to dictate future rate increases?

Raymond Harvey, Claremont