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Why do land value assessments for a duplex appear to tax the property twice?


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#1 Thatcher Smith

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Posted 26 January 2012 - 08:00 PM

I have a duplex in Fernwood. The assessments for each unit show an identical value for the land at around 300k and a net taxable value for each unit of a little more than 400k. This seems odd to me - am I not paying tax twice on the same lot? It seems unlikely that a person living in a 12 unit condo sees the entire value of the building site on his assessment.

I have had two conversations with the City concerning this over the past few years but never really got my head around the tortured logic on offer.

Could some kind soul explain?

#2 MarkoJ

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Posted 26 January 2012 - 08:59 PM

When you say duplex I am assuming you are refering to a strata duplex?

How do you know that the entire land value is not 600k which is split down the middle - 300k for each duplex?

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#3 Sparky

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Posted 26 January 2012 - 09:20 PM

^^ Welcome to Vibrant Victoria Thatcher Smith.

#4 Thatcher Smith

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Posted 27 January 2012 - 01:41 AM

I had thought of that but ruled it out as an absurd amount for a lot. I don't live in Victoria so I wouldn't know: is 600k even possible? It is 7000 square feet.

Yes, it is a strata duplex with an up-down rather than side-to-side arrangement.

#5 Mike K.

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Posted 27 January 2012 - 09:06 AM

It can be.

Keep in mind also that a legal duplex property is more valuable than an adjacent, exactly identical lot zoned as a single family dwelling.

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#6 rjag

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Posted 27 January 2012 - 09:21 AM

$600K for a 7,000ft lot in Fernwood is steep. Considering there is a 1/2 acre in wedgewood estates for $625k (listed off and on for 2 years with no bites) and 8 lots off sinclair hill in cadboro bay in the $400-$500 range.

The only other thing to consider is if its 2 lots or the fact that its zoned properly as Duplex then there is a higher value attached due to higher resale....but more info would help, i.e. is it a side street or main road, what is the zoning and the age of the duplex?

#7 MarkoJ

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Posted 27 January 2012 - 10:22 AM

I looked up a few duplexes and a number of them have a land value assessed of around $300,000 in Fernwood.

Your land value might a bit high; however, 400k total sounds reasonable.

I sold a duplex (one side) on Princess Avenue a few months ago for $428,000.

Land Assessment = $304,000
Improvements = $115,000
Total = $419,000

You have the option of appealing your assessment.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#8 Bernard

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Posted 27 January 2012 - 11:04 AM

On your assessment ignore the numbers for land and buildings, they are not intended to reflect the value of either. The only value that matters is the total value of the property.

The land/building values can get really screwy when you are dealing with strata properties. The way it is worked out for a strata is that the land value is the residual value left over after you deduct the value of the improvements. Since the improvement can not be sold without the land and the land can not be sold with the improvement, both numbers really have no meaning.

With a single family home there is at least some value of the land as a bare lot no matter how bad the building is.

The only number that you need to look at is the total value number and decide if it reflects a reasonable value for the property for July 1st 2011.

#9 Mike K.

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Posted 30 January 2012 - 08:56 AM

I've rejigged the question in the title of this thread just to make it a little more descriptive. Does it work?

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