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Monday Feb 03, 2014

Cape municipal valuations apply till 2015

The City of Cape Town won't publish a municipal valuations roll this year, so the results of the previous roll, published in February last year, will apply to all properties until at least February 2015.

Municipalities are only required to publish a new roll every four years, so it's likely these values will apply until early 2016.

The exception to this is properties that have substantially changed during this period or are deemed to have been incorrectly valued to a large degree. To update information, a supplementary roll is published every year detailing properties that have had their valuations amended.

'Most homes won't be revalued until the next general roll, but it's good to be aware in case a change does come,' said Claude McKirby, southern suburbs principal for Lew Geffen Sotheby's International Realty.

'The change in question is your rates, which are calculated according to the municipality's valuation of your home, minus a R200 000 rebate. You should be aware of the value the city has put on your property, as an incorrect value could result in rates being higher than they should be.'

Rates for residential properties are 0.0059 percent of the municipal value minus the rebate, whereas commercial properties attract rates that are 0.0118 percent of the value. There is no rebate on commercial property.

'Over the years, the system has improved and most valuations now are quite accurate, but with 800 000 properties to value, there are bound to be errors,' said Steve Thomas, False Bay area manager for Lew Geffen Sotheby's International Realty.

'There is an objection system for owners who think their properties have been overvalued; however this is only available for a certain time after the roll has been published.

'Each supplementary roll also opens a new window for objection, but only to properties that have had their values changed. In general, the valuations are below what your home would fetch on the open market and shouldn't really play a role in the sale process,' said Thomas.

'Nevertheless , buyers should be aware of why their rates are as much as they are and, if necessary, be prepared to lodge objections when the opportunity arises.

'If you are carrying out extensive work on your property, you need to factor in the likely rise in rates in the next supplementary roll,' said McKirby.

Weekend Argus (Saturday Edition)


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