Val­u­a­tion in­creases

Business Day - Home Front - - HOMEFRONT -

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 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”.

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