According to Susan Watts, broker/manager at RE/MAX Living, municipal rates for the City of Cape Town are expected to increase by between 9% and 13%.
In many cases, this has meant that the values given in this year’s valuation roll are far higher (double in certain cases) than the previous valuation roll done in 2015. However, in the past, many properties were under-estimated.
“Ultimately, the City Council cannot dictate a value. Only a willing and able buyer who puts pen to paper can dictate that value.
“With rising municipal rates in addition to increasing levies, the cost of fuel and the cost of living, it is likely more homeowners will need to downscale or enter the rental market,” Watts said.
“This will further increase supply in the property market and demand for rentals at more affordable prices.
“All in all, I believe prices will, in many cases, not match up to the calculations of the Cape Town municipality. The market is flooded with stock and only the most keenly priced properties are selling.
“Homeowners are encouraged to review the valuation roll in order to object to the valuation of their property if they feel it is unreasonable, or face the consequences of higher municipal rates than necessary until the next valuation roll is released in four years’ time,” advised Adrian Goslett, regional director and chief executive of REMAX, Southern Africa.
To view the valuation of your property, or a list of various venues where homeowners may submit objections, visit the City of Cape Town website (www.capetown.gov.za) and click on the valuations link under the Family and Home tab.
“Have a municipal account on hand, as you will need your property reference number to search for your property. If your property does not appear, fill out an objection form so the property can be valued in the Supplementary Valuation Roll published every July,” Goslett said.
Based on geographical information and recent sales in your suburb, the city uses a computer-aided mass appraisal system to determine the values of all properties. Starting point for a strong objection will therefore include a neighbourhood evaluation that would justify why the valuation of your property should be lower. You can find reports online.