Market valuations of our properties a rip-off

NORAH Beukes, of Richmond Hill (“Shocked at rates increase”, August 2), is spot on.

The metro has been cunning in promising an increase in rates which it was expected to be a lower rate increase applied to a new higher valuation.

But no! Even though we have objected to the new valuation it has based the higher rates on the higher valuation.

This has also automatically increased the SRA (Richmond Hill) levy – the SRA is actually undertaking work that the metro should be doing!

We purchased our property as a pension investment, but for the metro value to increase 81.82% plus an SRA increase is daylight robbery.

This amounts to R2 045.32 per month while we are bound by leases of 7% rent increase per annum.

In previous years when I had the privilege of serving as a councillor for Port Elizabeth Central, the valuations were referred to as “municipal” not “market” which are always different.

“Municipal” was based on the depreciated value of the property while “market” is what the current price is between a willing buyer and willing seller. This is a rip-off. Finally the point that is also annoying is that despite my objection, which was acknowledged by the metro, it charges rates on its new valuation irrespective.

Goodbye investment income.

Colyn Myles, Port Elizabeth