Data provided by iNet BFA
Loading...
See More

Do your homework, Cape homeowners urged

Feb 07 2013 14:44


Related Articles

Dos and dont's of eviction

Adprop managers may have stolen millions

Constantia homeowner takes on Outsurance

Court blow for indebted homeowners

Not much cheer in property market

Innovation set to drive property sales

 

Cape Town - Cape Town homeowners could be in for a nasty surprise when results of the city’s 2012 General Valuation Roll are released in late February.

Revised rates will be published on the City of Cape Town’s website this month, based on an assessment of 800 000 properties within city boundaries that took place on July 1 last year.

Valuations, which are based on actual property transactions that have taken place in the three years since the city’s last rates hike in 2009, were conducted using a mass appraisal method. This method assigns weighted values to various property attributes such as size, outbuildings and views. 

City officials have assured ratepayers that their comparative market analysis system is accurate, having been significantly refined since the first city-wide valuation in 2000. However, homeowners will have the opportunity to contest the revised valuations should they disagree with the city’s findings.

Rates payers will have until the end of April to lodge their objections, but according to Property24 general manager JP Farinha this is not a process that should be entered into without sufficient grounds.

"The city’s mass appraisal method is becoming progressively more accurate, and as a result, objections to revised property values are unlikely to be considered if based purely on comparisons to other houses in the area," says Farinha.

"While the system is by no means foolproof, homeowners looking to have their claims heard will need to substantiate them with factual data, based on professional appraisals from industry experts."

The city’s valuations are conducted by professional valuers, statistical analysts and data collectors, and are informed by a number of diverse factors. Over and above more traditional elements such as location and number of bedrooms, assessments take into account everything from subdivisions and renovations to additional construction or demolition.

Vacant land is also double rated to encourage building, and properties seen to be income generating tend to be ascribed higher, commercial rates.

As a result, Farinha believes it's imperative that those looking to lodge a claim do their homework.

“In order to substantiate a claim, homeowners will need to have a comprehensive understanding of the various grounds used to assess the value of their home,” says Farinha.

“Qualified estate agents are well placed to provide an accurate assessment of a property’s market value, as they use similar methods to those employed by the city and can thus interrogate the various evaluated factors thoroughly.”

Homeowners looking to perform their own research to support their claim can also make use of Property24’s property values service, which uses sophisticated statistical information to provide accurate and immediate value appraisals.

“Property24’s property values service allows rates payers to undertake a complete assessment of their property’s value from the comfort of their own home,” explains Farinha.

“Valuations on the site incorporate information from the Deeds Office, and take into account price trends and recent sales in order to ensure accuracy. Armed with this type of information, homeowners have a far greater chance of success when lodging their claim.”

The City of Cape Town has advised ratepayers that they will need to continue to pay their required rates until their objection has been resolved. New rates will come into effect from July 2013.

 - Fin24

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

property
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
10 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No more nice-to-have shopping sprees

Fin24 user Asia writes how she managed to rehabilitate herself from splurging on feel-good items and keep clean from the bondage of lifestyle debt.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...