Pensioner can’t afford to sell after $90k drop in value
Woman says decrease means she can’t move into retirement home
A77-year-old Tauranga woman whose council property valuation has plummeted by $90,000 says she feels “stuck” because selling her home will not raise enough money to allow her move into a retirement village.
Lyn Voyde, who has lived alone in her O¯tu¯moetai home for almost nine years, says she found out her new property revaluation from a real estate agent and is annoyed about the “lack of communication” from the council.
According to the Tauranga City Council website, the 2023 capital value of Voyde’s home is $750,000 — down from $840,000 in 2021.
Voyde said a recent valuation of her home by a property valuer was “slightly higher” than the 2023 capital value.
In her view: “Now I can’t sell my house because of the devaluation because I won’t get enough to go into a retirement village.
“I am stuck. I would say it’s not just me, there’d be a lot of people in the same situation.”
However, the council says buyers and sellers determined the property market — “not council’s rating valuations”.
The council’s latest revaluations — which provided a property’s likely selling price if it had sold on May 1, 2023 — showed residential property values in Tauranga had plummeted since 2021.
O¯tu¯moetai and Arataki/royal Palm were the two suburbs recording the biggest average decrease in value at 12 per cent.
The 2021 revaluation saw unprecedented growth when residential property values were up an average of 50 per cent on 2018. Appalling’ rates increase Voyde told the Bay of Plenty Times she spoke to a real estate agent about two weeks ago who told her the council’s revaluations had been done — unbeknown to Voyde.
The agent looked up her address on the council’s website and told her her property’s value had decreased by $90,000.
Voyde — who received her council revaluation in the mail on April 12 — said she was “so annoyed” about the “lack of communication” from the council.
She had requested to meet with the council’s chief executive to raise her concerns.
Voyde tried to sell her home last year but “it didn’t work” and took it off the market. She wanted to sell her home this year and move into a retirement village.
Voyde said she believed people would use the council’s revaluation when looking at purchasing property.
“I do think it will affect [it] if I wanted to sell.
“It’s not just me. Anybody who wants to put their house on the market for whatever reason.”
In Voyde’s view, it was “appalling” that her rates were increasing on a “devalued” property.
Local Democracy Reporting reported in March the median rates rise for residential ratepayers would be 11.1 per cent for the 2024/25 financial year.
Rating valuations do not determine property market — council
Tauranga City Council rating policy and revenue manager Jim Taylor said buyers and sellers determined the property market — “not council’s rating valuations”. He said the council was legally required to revalue all properties for rating purposes every three years.
“To do this, our independent valuers Opteon look back at what was actually happening in the housing market on May 1, 2023, and at that time both the local and national property market was at a low point.
“It is quite likely that, for some, the property market has moved upwards since May 1, 2023.”
Taylor acknowledged it was a hard time to increase rates and the council was doing its best to make sure everyone paid their fair share.
Changes to its rating differentials were planned for the next financial year which would see an increase in industrial rating categories relative to residential.
“This helps in balancing and ensuring each rating category pays its fair share.”
Taylor said a change in a property’s value did not mean that rates would increase or decrease by the amount of the change.
For example, when property values increased by 50 per cent in the 2021 revaluation, rates did not increase by 50 per cent. They increased by the amount budgeted for in the annual plan, he said.
“Property valuations are just one of the tools we use to help us work out everyone’s share of rates.”
Taylor said rates were calculated using a property’s value and the use of the property, such as residential, commercial or rural.
The council’s annual plan or Long-term Plan decided the work for the year ahead, how much it would cost and the rates budget needed to pay for it.
He said rates provided about half of the council’s income and were used to fund council activities and services that benefitted the whole community such as roads, stormwater systems, libraries, parks, and reserves.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.
"I am stuck. I would say it’s not just me, there’d be a lot of people in the same situation." Lyn Voyde