GOING UP Tony Clarke, MD of Rawson Properties, says that many of the latest Cape Town residential property valuations are 20% to 30% higher than previously, and that the municipality can expect a barrage of complaints and objections.
“All the major bank reviews have shown that property values were in a decline for part of 2008 and most of last year. How can the municipality appreciate them by 20% or more?
“Estate agents know only too well that the market went through a slump last year — these latest valuations cannot reflect market conditions.”
Clarke says that valuation objections are considered by the City of Cape Town but have to be received by the council before April 30. They have to be submitted on a prescribed objection form that can be downloaded from www.capetown.gov.za/ propertyvaluations or collected from any of the council’s 18 public inspection offices.
If the council rejects an objection and sticks to its valuation, an appeal can be lodged with their independent appeal board. However, even though an objection or an appeal has been made the home owner is not exonerated from paying rates on the new scale.
Clarke feels that property valuations should be based on land value. A neglectful home owner should pay the same rates as a conscientious one — “after all, the services to both the properties are the same”.