Joburg braces for rates war

The soaring property valuations in Johannesburg has left the public frustrated and deeply strained due to imminent higher rates with increases of 60-70% in some instances.

With help of estate agents, a homeowner managed to get her property revalued.

The soaring property valuations in Johannesburg has left the public frustrated and deeply strained due to imminent higher rates. With the next General Valuation (GV18) roll less than six months away, television personality Melanie Walker explained how her property value increased by 60-70% – with an increase of over R1.7 million.

Walker said her year-long battle with the City of Johannesburg to try and get her property revalued correctly, was long and frustrating. “I wanted to get my mother’s and my property revalued. My objection was thrown out then it was taken to court,” she said.

“During the last fight, they had valued our property at R2.35 million, while my nextdoor neighbour’s property that has more bathrooms, a cottage and a pool; was only valued at R1.8 millon.”

Walker says the conducting of a generalised valuation by the city, based on surrounding properties, was unfair to property owners.

“I think it’s ridiculous that the city is generalising figures for a lot of houses based on other houses in the area – instead of taking each property for its own merits.”

With the help of three estate agents who conducted realistic valuations, Walker said she managed to get her property revalued to R1.5 million.

Since then, Walker said her property is now valued at R2,879 million, despite its previous valuation being corrected to R1.7 million. “That’s over a million rand increase in the last year or so. This cannot be possible.”

Christo Weilbach, a board member of the Estate Agency Affairs Board and the Institute Of Estate Agents of SA, said property rates and taxes are council driven and are based on property value that is calculated yearly.

“Anyone who is buying property where there is commission involved will have to pay 1% extra due to the VAT increase,” said Weilbach.

The city’s spokesperson Kgamanyane Stan Maphologela says the increase of property valuation can be attributed to market increases, properties being improved and if a property was undervalued in the current valuation roll.