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Property Valuations in Camps Bay as per CCT General Valuations GV2018
The CBCRA has had
extensive talks with Mayor Dan Plato and deputy Mayor Ian Neilson (in his
capacity as Mayco Member for Finance) over the past few weeks to better
understand the new valuations and express the community’s outrage at the high
increases in valuations along the Atlantic Seaboard.
We have also met with
other ratepayer associations in the area to discuss the new valuations’ impact.
The City is certainly not
willing to budge on its system and defends it to the end!
When the City first
bought and implemented the current computer assisted mass appraisal system over
a decade ago, the CBCRA and others conducted a comprehensive study of its
correctness, by comparing a vast number of sales against valuations (at that
specific time).
It became quite clear
that the valuation system was questionable.
At the time, the City
rejected the findings and there was no financial backing to challenge the
City’s system legally.
In 2019 the City has
produced the GV2018. This is the valuation of your property as at 02 July 2018,
as assessed by the City.
There are a few
important points to note:
- The state of the market currently is not at
issue – only the value as at 02 July 2018.
- It could be argued that this reflects the
highest that the market has ever been – 2016 & 2017 having seen sizeable
increases in property values, with a large correction in 2018 and 2019. In
other words, an unfair time to do a new property valuation.
- The City argues that it attempts to value all
properties every 3 years and that the last time was 3 years ago, GV2015.
Although this point is probably valid on the face of it – a more “Caring City”
would have possibly have conducted its property valuation at a more representative
time, as it was clear from early 2018 that the market was weakening.
- The percentage increase in the value of a
property will not be the direct increase in the rates levied by the City. The
“cent in the rand” used to establish actual rates has been decreased by about
22% plus a few other factors. Broadly speaking, if your valuation has not
increased by more than 25 – 30%, you should not experience a rates increase.
- 25% of the City’s budget is raised from rates.
The City have made it
very clear that it will only deal with individual objections, as per
legislation, and that it stands by its valuation system and results.
The CBCRA therefore recommends
that every property owner, who is dissatisfied with his/her valuation, submits
an objection to the City electronically (the date for manual submission of
property valuation objection has past).
Please note that you
should require reasons from the valuator for the valuation of your property.
Please also note that should
the City disagree with you and, upon physical inspection of the subject
property, assess the value to be higher, then it might increase the value. So
be careful!
The City use 20
attributes to value your property (see Table 1 below), which is only for
residential properties and does not include sectional title not business
properties.
How many of these
attributes are assessed seems to be a mystery in cases where no physical
inspection has been made…. however, use them as you see fit.
The City also refuse
to consider comparative valuations in an area, which the CBCRA has raised as a
serious flaw in the system. It is recommended that you use such values,
regardless of the City’s refusal.
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All objections are assessed by the City Valuers and there is no
political aspect to this process. If you are dissatisfied with this assessment,
then an appeal to the Provincial Appeal Authority is the final step in the
process.
An overview of the “results” of the GV2018 are shown below, in Table 2.
It is clear that 26% of ratepayers in the City are going to shoulder the burden
of the City’s budgetary requirements – and that a disproportionate percentage
of that group are from the Atlantic Seaboard.
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Table 2
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The CBCRA will
continue to monitor the situation and take issue with the City if there are
provable systemic problems.
Chris Willemse
Chair
CBCRA
