question, page-2

burnsbns, the value of the house/land is determined by supply and demand, not replacement cost. If someone is only prepared to pay $160,000 for it in five years time, that's all it is worth and the builders will be out of work.

We had a similar situation 15 years ago. We got the unimproved land valuation for our house. It had gone up to $80k, so our rates were up 50%. I spoke to the valuer - boy!! did he have all the info at his fingertips! He rattled off all the land sales in the last year which could relate to our block, and there was nothing to argue about. I said, feebly, that the property was only worth $130k, and you couldn't rebuild the house for under $120k. He said that people just like newer houses.