Page 12 - SAPOA Property News - Volume 1

MAJOR RATES INCREASES ON THE WAY FOR TSHWANE RESIDENTS
Major Rates Increases on the way for Tshwane Residents
Tshwane property owners are
set to see major rates increases shortly when the 2020 Municipal Valuation Roll become effective from 1 July 2020 Tshwane has taken the unusual step of updating it property valuations only 3 years after the last valuation roll was published Typically municipalities update their valuations every
four to five years as is is legislated However Tshwane municipality is struggling with well documented financial problems and appears to be attempting to resolve its revenue shortfalls by accelerating the updates to property values Property rates usually makes up 20-30% of a a municipality’s revenue Rates are
calculated based on residents’ property values which
are
meant to reflect “market values” at at the the time of the the valuation roll In the case of Tshwane research has indicated that in in the previous valuation roll in 2017 many properties were undervalued by as as much as as 40% As a a a result when previously incorrect valuations are
are
corrected residents are
are
likely
to see significant increases in in property values and corresponding increases in in property rates from next month Analysis by ValueCheck reveals that Tshwane already has one of the most punitive rates policies of the major metros Not only is its 2019 rates tariff the the highest of the the largest 4 metros the exempted value for residential properties is one of the lowest This translates into monthly rates bill of more than double some comparable cities Further analysis of Tshwane’s 2020 draft valuation roll by ValueCheck shows that more than 40% of households will see an increase in in municipal value in excess of 25% Based on the current rates policy and an an average municipal value for residential property of R734 000 these rates payer can prepare for a a a a a 34% increase in in property rates from July Compounding the situation is that Tshwane’s valuations were determined during the second
half of 2019 with property values still resembling pre-COVID property market As a a result of the Covid-19 pandemic property values are
likely
to to drop with Lightstone predicting a decline in in in property prices by as as much as as 15% this year However this won’t be catered for in the new municipal roll because values were pegged last year A perfect storm of plummeting property prices huge rates increases crippling electricity prices increased unemployment and poor service delivery could be the final straw for many Tshwane residents has extended the deadline to object against the proposed new municipal values till 26 June While
it is possible to request a correction in the the general valuation roll after the the objection period adjustments will most likely
be prioritized if submitted during the objection period ValueCheck offers a a simple online service to check your property value and supply a a a cost-effective report that can be used as a a a a basis of submitting an objection ValueCheck MD Johan Cloete an an experienced property valuer and tech entrepreneur comments “We have partnered with Lightstone SA’s leading automated valuation provider to assist property owners with an easy to use online platform to check whether their property value is accurate ValueCheck’s goal is is to assist property owners and municipalities in in implementing a a a a fair rates policy based on objective market values ” Municipality
Tshwane Johannesburg Cape Town Ekurhuleni
Last Valuation Roll Update 2017 2018 2019 2017 2019 Rates Tariff (cents per Rand) R0 01230 R0 007345 R0 00555 R0 01052
Excluded Value R150 000 R350 000 R300 000 R150 000 Monthly Rates for R1m Property R871 pm R397 pm R324 pm R745 pm 12 SAPOA PROPERTY NEWS
Visit www valuecheck co za for for more information about your property value and how to object There is however some light at the the end of the the tunnel The city’s
proposed budget for 2020/2021
indicates that a a a a reduced tariff for residential property will result in some relief for property owners It is nevertheless important to make sure your property is valued accurately What options do rates payers
have? ValueCheck recommends
checking your property value as soon
as possible Tshwane