select
|

'Base objections to property valuations on fact'

Cape Town home owners who disagree with their property valuations for this year need to base their objections on fact to win their cases, says Jenny Shaw, professional associated valuer and co-principal owner of Harcourts Back Wave.

According to Shaw, this year's residential property rates, which will be based on the general valuation of July 1 last year, along with details on how to lodge an objection, will appear on the City of Cape Town website next month to enable ratepayers to lodge objections before implementation.

Shaw, who has in previous years conducted valuations for objections on behalf of the City of Cape Town, says consumers need to be aware of two things: that the valuations are based on actual registered property sales in the area, and that objections need valid grounds.

"Objections on the basis of the market value being used as a method for calculating rates or that the neighbour's property is valued for less than yours will not be acceptable. Objections will only be reviewed if you can substantiate that the market value given by the council is incorrect."

Richard Gray, chief executive of Harcourts SA, says those who want to lodge objections should engage qualified property valuers or estate agents who have been working in the area for some time.

"A professional estate agent will value the property using the comparative market analysis method, which lists comparable sales at a particular time.

"The city's valuation department uses the same method, but on a mass appraisal basis, whereby different 'weights' are applied to the various value-forming attributes of the property. These include factors like locality, site size, house size, number of bedrooms and bathrooms, outbuildings, pool, condition and view, to name a few."

It's this sort of data that's required to support an objection, he says, adding that the estate agent or valuer will need to compare the property in question with the attributes of the property sales being used in support of the objection.

He recommends that at least three comparisons be used to motivate the value.

Gray says vacant land is double-rated (to encourage building); properties with more than two kitchens are rated as commercial properties since they are seen to be income-producing or at least have the potential to be income-producing; while commercial properties pay higher rates.

Other factors likely to influence the new valuation roll include the demolition or renovation of a property, the construction of new accommodation such as a granny flat, the construction of a new house on vacant land, or the subdivision or consolidation of a property.

"This is Cape Town's third general valuation, and with each consecutive general valuation municipal valuers and data collectors have gained access to, and inspected, more properties," says Gray.

"The result is that the information used in the mass appraisal method is becoming progressively more accurate. This should result in fewer objections being lodged , although a mass appraisal will always result in some errors, as properties even in a similar locality can differ vastly in their value-forming attributes. It's a big challenge for the valuation department, hence the provision of a window period for lodging objections."

Gray also says that property owners wishing to lodge objections need to continue paying their rates until the matter is resolved.

"The City of Cape Town will advise people of their options, which usually include paying what they currently pay, paying the new rates, or paying based on what they believe the correct value to be.

"This will apply until the objection has been resolved, at which point the council will credit their accounts in the event that any excess amounts have been paid."

(Weekend Argus - Saturday Edition)


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK