CAPE TOWN PROPERTY RATES BILL
With the new property municipal valuations set to affect property rates, it’s important for all homeowners to be aware of the true value of their properties.
Since 2009, the Cape Town City Council has been working closely with professional valuers, data collectors and statistical analysts, to deliver on the GV2012 project. The project will determine the municipal values of homes and effectively the property rates that should be paid, based on the values. There will be a document known as the General Valuation Roll which will contain these values, and will be certified in January 2013.
On 1 July of this year, all 800 000 homes within the boundaries of the City of Cape Town were valued using a computer-assisted mass appraisal (CAMA) system, which was done for the purpose of ensuring fairness. However, these valuations may not be entirely accurate.
“The problem with municipal valuations is that they often result in over-valuing, sometimes up to as much as 20% more than the actual value,” says Francois Venter, Director of Jawitz Properties.
“Homeowners tend to think these valuations are conclusive and want to use them as a basis for determining a price for their homes. However, more often than not the council valuation doesn’t reflect the true market value of a property. And far from being something to cheer about, a higher valuation simply means they will end up paying higher property rates.”
Every four years homes are re-valued and consequently property rates change. New property values will be sent to homeowners in February 2013, including the new property rates effective from July 2013. However, homeowners are able to contest their given valuations and property rates in March and April 2013, and with that in mind, Venter advises that personal valuations be done independently to ascertain an accurate valuation.
“Homeowners should consult an estate agent before it’s too late. Failing to respond will mean that the given municipal valuation won’t change, and for the next four years the revised property rates will have to be paid.” For more information on the rights of a homeowner in line with the GV2012 project and process,
click here