RATES MYSTERY

Home owners puzzled over payment

THE headache for Buffalo City Metro ratepayers may be far from over. Last week, many of the city’s homeowners were shocked when the value of their houses was drastically increased by the municipality in its valuation roll, in some cases upwards of 50% if not more.

However, according to at least two people the Daily Dispatch has spoken to, there is no clear formula that can be applied to ascertain how this new valuation will impact on the rates they pay.

Buffalo City Ratepayers’ Forum secretary Christo Theart said that until the new budget is passed in June, it is impossible for residents to find out how their new house valuation may affect their rates.

“This is the problem people are facing. All they can concentrate on is how much the value of their home has gone up by. They don’t yet know what it means or what the impact will be,” said Theart.

He added it was possible to file an objection before April 26.

“If you want to file an objection you will need to compare your home value to those around you to see if the value is comparable to your neighbours.

“You also need to determine the market value of property in your area. This can be done through looking at recent sales with the help of an estate agent. They will charge you a small fee, but it is worth it to know you’re going through the process properly.

“I personally do this every time valuations happen and have previously been successful with an appeal,” said Theart.

An example of what Theart described is this: If you find the [BCM] value of your home is now R1.5-million but your neighbours’ homes are valued at R1million and the market value of your area is only R900 000 you have grounds to object.

Estate agent Valerie Knoetze, of Property Redefined and chairwoman of the Gonubie Ratepayers’ Association, echoed Theart, saying she has yet to determine how to work out the rates.

Knoetze said at a ratepayers’ association meeting attended by 60 upset residents, the BCM facilitator for property valuations was unable to explain how rates were worked out despite listing off a long formula.

She said that she would gladly help Gonubie residents unhappy with BCM’s valuation of the property by working out their area’s market value for free.

“I love Gonubie and will help where I can,” she said.

BCM spokesman Samkelo Ngwenya said: “We are still long before the rates process.” He added that the valuation process was a “transparent process that can be overturned”.