Property Rates Are Going Down But Council Rates Are Going Up

Just in the last few months we have been hit with a bunch of news stories about property prices going down in Australia. It looks as if the property bubble has finally popped.

Each year we all have to pay our council rates for our local services; and each year council rates are based on your property value. But while the value of our properties has been going down, someone has forgotten to let the councils know about this fact. A recent news report came out about councils still putting up rates regardless of what properties were doing.

In fact there was one council in NSW who put up their rates by 6% this year, while the property prices in the area went down by 5%. These people are now paying an 11% difference between what their property is worth to what rates they pay.

But if you are smart, you can save yourself money. On your council rate bill there will be a section which tells you exactly what the value of your house is. If you believe your house is undervalued, don’t do anything, as this means you are getting a discount. However, if you believe your house is overvalued, write them a letter. Explain what you believe your house should be valued at. If they concede they have made a mistake (which is more common than you think) then you will get a discount.

A once off letter could save you money, not only this year, but each year when the council rates are due.