New Valuation Property Rates: Inspections & Objections
Category Homeowners Guide
Hey Homeowners!
Just a heads-up, the City of Cape Town Municipality is busy finalising the Valuation Roll for 2022, which will bring about new rates charged on the updated valuation. The General Valuation Roll is open to the public (you, the homeowner) for inspection, as well as potential objection, based on a reasonable market value, from around the 21st of February 2023, for a 60-day period.
Municipal valuations are conducted at least once every 4 years. The City of Cape Town completes valuations in order to determine a property's value when sold on the open market, where all parties involved, seller and buyer, give their consent. This figure is used to calculate the rates payable by the owner of the property.
The valuation roll & property valuations
The Cape Town City Council uses the valuation roll to determine a property's municipal valuation, the rates of the property, as well as which properties qualify for municipal services, such as street cleaning, and refuse and sewerage collection. The valuation roll is further used by property owners as evidence to dispute or object their updated rates.
As it stands, property valuations are conducted by real estate agents, using Comparative Market Analysis (CMA). CMA encompasses information such as the previous sold price, previously sold properties, and their prices, within the area, which are similar in floor size, erf size, number of bedrooms and bathrooms, and so on.
So, what impact does the new municipal valuation have on you, as a homeowner?
Every property within the borders of the City of Cape Town will undergo re-evaluation based upon market values as of the 1st of July 2022. According to the new general valuations, the new rates and taxes are payable on the property as from the 1st of July 2023.
As a homeowner, you should receive notices between January and February 2023 with the new General Valuation / Market Value of your property as issued by the City and you will be allowed the opportunity to object within a mere 60-day objection period, which will expire on the 30th of April 2023.
To object or not to object
The reason for objection to the new rates will be determined by reasonable market values of your property. This is where we come in. You need to know what your property is valued at, in terms of market value. "At Louw & Coetzee Properties, our agents are well trained and have multiple quality resources at their disposal in order to provide you with a property valuation report that is accurate." Our professional team of agents will ensure you receive a FREE property valuation based upon real market related value.
If you are not satisfied with the new rates, based upon the information you receive reflecting reasonable market values, you can then object, using the valuation roll, and property valuation from Louw & Coetzee as your evidence.
The 60-day objection period & process
We suggest getting your updated valuations done as soon as possible in order to allow you to object (should you wish) and as soon as possible, as the process does take time.
The court has ruled that the objection forms need to be completed correctly and include reasons for the homeowners' proposed objections. Once Council receives your objection, within the given timeframe, a municipal valuer will assess the valuations. The municipal valuer may agree with your proposed objection, and correct the municipal valuations, or reject your objection.
Furthermore, upon receiving Council's response to your objection, if you as the homeowner are still dissatisfied with the outcome, you will have 30-days from the notice of the ruling of the objections to appeal against the updated market values.
This process includes a formal hearing whereby the owner, or employed valuer, will be presented with the opportunity to orally supply evidence, and to cross-examine the municipal valuer.
P.S. It is in your best interest to cooperate with the Valuation Department, provide them with any and all reasonable and beneficial information, and always retain a copy of your objections and evidence for your records, ensuring you have confirmation of the lodging of your objection. Valuations should be done objectively and with the necessary professional supporting documents.
You may be thinking, "Where do I begin?"
The first step is contacting Louw & Coetzee Properties for an accurate, market-related assessment of your property, in order to ensure your 2022 Municipal Valuation is correct. Remember, any reduction of rates you obtain in this process can affect you for the next 3 to 4 years. That is why our team of professionals are here to help you in the process.
Request your valuation! If you are unsure which area specialist works in your area, feel free to contact us on 021 976 3180 for Luzanne Stemmet.
Read more about the Benefits of a Property Valuation.
Written by: Hayley Kellerman
Author: Louw & Coetzee Properties
