With the process of municipal valuations now well underway, many property owners may be experiencing anxiety about the potential impact on their property’s rates and taxes.
But, says Pam Golding Properties, if owners participate fully in the process and do their homework properly, there is no need for it to cause undue stress.
“There is always anxiety associated with this process,” says PGP’s MD for the Western Cape metro region, Laurie Wener. “Based on past experience, many owners will have perceived a lack of consistency in the valuation process – with some properties being assigned realistic values compared to current market values, whereas others are significantly over- or under-valued.
“For this reason, it is essential for property owners to play their part in the process, to ensure that the final declared value is a fair representation of their property. It is in every owner’s best interests to take the time to research property values in the area, and satisfy themselves that the value set by the municipality is accurate. Records of transfers can be easily obtained from the local deeds office, and by comparison, will provide a good indication of the fair market value of a property.”
The valuation process is already advanced, as the General Valuation Roll of 2009 was certified by the Municipal Valuer at the end of January 2010, and is now available for inspection by home-owners.
Many owners will have already received the schedules of the updated valuation of their properties and the process to follow for lodging objections. Once finalised, this roll will be valid for from July 1 2010 to 30 June 2014. It is intended to represent a snapshot of the value of your home as at July 1 2009, and will be used as the basis to determine municipal rates during this period.
Cape Town residents can view their valuations online at www.capetown.gov.za/propertyvaluations, or can visit one of the public inspection venues, which include the Cape Town and Athlone Civic Centres, Mowbray Town Hall, and the Alphen Centre in Constantia, as well as the public libraries in Simon’s Town, Southfield and Strand.
Owners who want to submit objections to their valuations need to do so by the end of April 2010. Wener says an estate agent’s recent valuation of a property is not necessarily the best basis from which to launch an objection.
“Although estate agents may be skilled in conducting expert valuations of property, it is doubtful whether the municipality would accept the findings of a private agency. Rather, we advise owners to appoint a sworn property valuer, whose opinion would probably be regarded by the municipality as more independent and unbiased. We recommend contacting the South African Institute of Valuers at www.saiv.org.za or 021 762 3313, to find a valuer specialising in your area.”
Objections need to be specific and substantiated, and the onus is on the property owner to prove that the market value assessment given to their property is incorrect. Objection forms can be submitted by email to valuationsobjection@capetown.gov.za, or by fax to 086 588 6042. They can also be sent by post to the City of Cape Town’s Objection Co-ordinator at PO Box 4522, Cape Town,8000. Alternatively, they can be handed in at one of the 18 public inspection venues, which are open from Monday to Friday from 9 am to 4 pm, and on Saturdays from 9 am to 12 pm. The centres are closed on Sundays and public holidays.
Wener says there is still no finality on what the impact of the new valuations will be on municipal rates and taxes.
“The formula for calculating these amounts is certainly based on valuations, but what is more influential is the decision on the so-called ‘rate in the rand’ – which will only be confirmed in May,” she says. “In fact, we would argue that of far greater concern to property owners is the potential impact of electricity price hikes of 95% over the next three years.”
