select
|

Rising property rates causes concern

The South African Property Owners Association (Sapoa) has appointed Rates Watch, a specialist consultancy, to research budgets for the coming year due to the sharp escalation in municipal costs. 

Rates Watch will focus on unearthing budget information from the 11 largest municipalities on key property-related costs, such as rates and taxes, electricity and water.

Rates Watch must also identify, analyse and collect data on relevant municipal policies and legislation and the medium-term revenue and expenditure frameworks at these large municipalities.

Last year saw Sapoa warning that commercial property owners were poised to challenge the major urban municipalities over high increases in rates, which they said were unsustainable.

Estienne de Klerk, Sapoa's president, said last year that the association would question the legality of these increased rates and if it did not receive a satisfactory response, it would approach the local government minister, or even the finance minister.

Sapoa chief executive Neil Gopal has adopted a softer approach, stating yesterday that its primary goal was to alert property owners and investor members to changes in property-related municipal costs that could affect them.

'As a sector, commercial and industrial property wants to contribute in a positive way towards the efficient functioning of municipalities.

'Sapoa members contribute significantly to the rates base and we believe it's in the interest of ourselves and municipalities across South Africa to partner on this matter,' Gopal said.

He did admit that rising municipal rates and taxes were 'a hot-button issue' and one that negatively affected not only operating costs and gross rentals but also made demands on property management resources.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    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