Grahamstown residents have expressed unhappiness with the vast increases in the values of their properties from the latest property valuation roll that started 1 July 2014.
Grahamstown residents have expressed unhappiness with the vast increases in the values of their properties from the latest property valuation roll that started 1 July 2014.
According to the Makana Municipality Rates Policy the property is meant to be valued according to its market value. This is the amount the property would have realised if sold on the date of valuation in the open market by a willing seller to a willing buyer.
Oatlands residents Priscilla and Ron Hall’s property rates are due at the end of September, and the latest valuation of their property has significantly increased the rates that they are set to pay.
The latest property valuation roll has set their property’s value 58% higher than last year’s value. They provided reasons to the municipality as to why they feel the new value is inaccurate after investigating the market values of surrounding houses that are similar to theirs.
“We looked at the prices of houses similar to ours that were sold over the period 2013/2014 and the prices were substantially lower,” Hall said. “The average prices of the houses in the area are currently R1 355 800, and with that in mind we felt our property was substantially overvalued.”
The Halls followed the objection protocol and lodged their objection at the Makana Municipality two weeks ago.
“They advised they were going to respond before the end of September when our rates are due; If they don’t, then on advice from the Legal Resources Centre we are going to pay at the old rate with an accompanying letter to say that this is a provisional payment pending Makana's response to our objections,” Hall added. “They invited objections, so we will expect a full, fair response, not just a one-word answer.”
While the Halls have objected to the latest valuation, other residents have lost impetus when it comes to dealing with such matters.
An anonymous resident who stays in Florence Street had experienced the same problem. He described his house valuation increase as “substantial” and said he was entirely unaware that the value of his property had nearly doubled this year.
“I had never been notified of the new valuation; I only discovered the value of my property increased whenI got my latest rates and taxes account,” the resident said.
He has little confidence that making an objection would affect the new value of his property, and has therefore decided not to object.
“I have appeared a number of times in those valuation appeal courts, and the usual people who appear in the valuation appeal courts are not competent to be there. I just feel it’s a waste of time.”
Jock McConnachie, of the Grahamstown Residents Association, said they have not had any approaches from members with the same objections, but added that people often only begin to realise the vast inflation of their property values once they get their accounts.
“People are advised to consult the valuation roll and determine whether their evaluation is fair compared to similar properties… it doesn’t help if you realise these increases when it’s too late.”
McConnachie felt that high increases in property values should be unlikely given the outlook of the property market.
“I believe the property market is fairly depressed at the moment, therefore properties should, if anything be the same as they were last year, if not less.”
Riyadh Poovan, Makana Municipality’s appointed property evaluator, said the valuation methodology for residential properties remains exactly the same and is still done according to the Municipal Property Rates Act.
“We follow a fair and equitable process according to the act. Should you feel that your evaluation is high, you can fill out the objection form in which we will have 30 days to respond,” said Poovan. “We do our best to ensure that everyone’s properties are evaluated fairly.”
