How is the GRV determined for land with no buildings?
For land that is undeveloped, a Gross Rental Value (GRV) is still determined by Landgate. As rental evidence cannot be used for this assessment, a statutory valuation of three per cent of the unimproved value (UV) is applied to properties designated as residential and five per cent for properties designated as non-residential.
If you need to check if your land has been classified as residential or non-residential, please contact Landgate Customer Service Team.
Below are examples of GRV calculations for undeveloped land having an unimproved value of $250,000.
|I want to know how the GRV is |
calculated for undeveloped land
|I want to know what UV was used to|
calculate the GRV for undeveloped land
|Residential||$250,000 (UV) multiply by 0.03 = $7,500 (GRV)||$7,500 (GRV) divide by 0.03 = $250,000 (UV)|
|Non-residential||$250,000 (UV) multiply by 0.05 = $12.500 (GRV)||$12,500 (GRV) divide by 0.05 = $250,000 (UV)|
All properties within a local government area are assessed at the same date. This date is used by valuers to ensure a fair and equitable assessment is completed for all properties at a given point in time, this is known as the date of valuation (DoV).
The diagram below represents the timeline of a GRV calculated every 3 years, which applies to the Perth metropolitan area and some WA regional local governments. Other WA regional local governments are assessed on a 3 to 6 year period, as deemed suitable by the Valuer-General.
The date of valuation (in this case 1 August 2018) is the date all properties within a local government area are assessed at, to determine a GRV. The effective date (in this case 1 July 2020) is the date the GRV is applied by local councils or other rating authorities. You can see how the GRV is applied to your rates notice over a 3 year period.