Most residents have recently received a letter from the City of Johannesburg, informing them of their property’s latest valuation, which should be in line with the market value.
But most are also unhappy about this increase, saying it is highly unlikely that they would be able to sell their homes at this price.
Some residents took to Facebook to reveal their frustrations, some saying their values went up by about R800 000, others more than doubled in value.
These increases effectively mean that ratepayers will pay more on their monthly accounts for property rates.
For example, taking into account that there are no rates levied on the first R200 000 of a property’s value, a property that has been revalued from R600 000 to R900 000 will see the original property rates bill of R230 possibly double.
How to object
The City is allowing residents to object to their valuation.
The new municipal valuation roll will be open for public inspection from 20 February and will run for 45 days.
Newly appointed MMC for Finance, Funzela Ngobeni, said the public inspect the roll until 6 April.
“Ratepayers will first be given the opportunity to inspect the General Valuation Roll from the first date of publication, before lodging any objections with the municipal valuer,” he said in a statement.
Property owners have the right to object to their property’s entry on this roll. But once the roll has been finalised, objections will only be allowed through a specific, legally determined process.
“A General Valuation Roll forms the basis for the levying of property rates. Owners who want to dispute the value of their properties should complete objection forms and attach supportive documents,” said Ngobeni.
If you are satisfied that this value on the notice of the 2018 General Valuation Roll represents the market value of your property as at 1 July 2017, you need to take no action.
Should you feel that your property has been over or undervalued, you may lodge an objection.
You can object online at the City’s website www.joburg.org.za or by visiting one of the customer service centres across the City.
Objecting to the outcome of the first objection
If you are not satisfied with the outcome of your objection, you can lodge an appeal within 30 days of receiving the outcome letter of objections.
The appeal is heard by the Valuation Appeal Board. The board consists of a legal representative and two professional valuers.
The board will review and either confirm, amend or revoke the decision of the municipal valuer.
Establishing property market value
When valuing the properties, the municipal valuer establishes the market conditions, as at the date of valuation.
This is based on recent sales and market information activity in the various areas.
Therefore, this will take into consideration areas where values have declined, increased or remained stagnant due to the current state of the economy.
Different valuation methodologies are used to value the different types of property.
Municipal vs estate agent market value
The date of valuation, 1 July 2017, is the date the market value of your property will be determined, and it will remain the same until the next general valuation roll comes into effect.
Unless there were changes done to the property after that date that may influence the market value, it stays the same.
Estate agents determine the value of a property in the current market which might differ significantly from the market as at the previous date of valuation.
Before the next general valuation roll comes into effect, properties are still valued as at 1 July 2012.
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