Johannesburg homeowners uproar over soaring property rates

Thousands of homeowners across Johannesburg are fuming after huge increases in their property valuations which have, in turn, increased their monthly rates significantly.

More than 42 000 objections have been lodged with the council, but only 18 000 of these have been dealt with.

The Democratic Alliance (DA) in Johannesburg warned objections could take up to six months to resolve – or as long as several years if handled through the long independent appeals process.

But while that process is underway, the new rates, based on the new valuations, will be included in monthly municipal accounts.

The city says, however, the process will be completed by September.

In January, all ratepayers were advised that their properties had been re-evaluated upwards and their rates, based on these new valuations, would be implemented this month.

The city invited all those affected to lodge objections by a date in May.

Property valuations increased between 10% and, in some cases, 100% – all this at a time of declining property values as emigration soars and a glut of “for sale”’ houses dominate suburban streets.

The DA said: “For those with property valuation objections, our recommendation is to pay the full amount outstanding. If your objection is successful, you will have a credit once it’s finalised.

READ: Breathing room for Joburg pensioners

“If you opt to pay what you deem fair and the objection is unsuccessful, you will have approximately 24 hours to rectify your account to avoid credit control procedures being implemented.”

Particularly hard hit are pensioners, who may claim rebates if they are over 60.

Depending on income, people over 60 may claim a rebate of R1.5 million on their property value – and pay rates on the amount above that.

Dependent on income, the pensioner may qualify for a rebate of either 50% or 100% on rates. Pensioners over the age of 70 will qualify for a 100% rebate on property value up to R2 million.

One female pensioner feeling the squeeze is K Wellmann, 76, whose husband is 85.

“We bought our house in the mid-80s. We both worked and could afford it back then. Not any longer.

“My husband and I both receive tiny pensions, less than our outgoings. Up to now, our rates have been negligible as we qualified for pensioners’ rebates. Despite that it has been a constant battle,” Wellman says.

“Electricity costs are a total nightmare, the smart meter never stops demanding. We have an old car that is more than 20 years old and which we can barely afford to drive as petrol is beyond our budget.”

She said the municipality had increased the value of the property by more than R1 million.

“They are quite mad. Where do they get that valuation from? That’s a third more than their own previous value and bore no relationship to the actual value.”

With the help of a friend, she and her husband submitted an objection. This included detailed reports from estate agents in the area, as well as a description of the suburb’s bad crime… something which would lower the value of a property.

“I don’t think they ever had any intention of taking our objections seriously. All they have to do is walk around this area and they will see over 40 houses for sale. Where are we to find the money? If we don’t pay they will cut everything off. And then?”

Ward 117 councillor Tim Truluck said the valuation process was a “delicate matter”, although he believes the valuation roll is “nowhere as bad as five years ago.”

But he added the city was, like most municipalities countrywide, “collapsing” so a degree of chaos is par for the course.

Action SA leader and former Johannesburg mayor Herman Mashaba said: “The EFF and ANC re-employed all the corrupt and incompetent officials that I fired when I was the mayor.

“So, does it come as a surprise that the valuations roll is in a mess? No.

“Nothing will come of anyone’s objections and they will just go ahead and do their own thing anyway.

“The city is running out of money and inflated valuations are simply a money-making racket to sap more money out of citizens,” Mashaba said.

DA councillor Chris Santana said the party will continue to “engage with all stakeholders to ensure that effective communication and resolution is sorted in the best interests of our forgotten residents and ratepayers”.

Additional reporting by Ian Hughes and Vukosi Maluleke