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Mangaung embarks on new valuation roll

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Mangaung Metro is in the process of updating property values across the city.

While this article is specific to a process being undertaken in the Free State capital, the basic principles apply to all revaluations of any municipal roll.

Most property owners in the metro should have received notification of the 2022 Municipal Valuation Roll.

On a regular four- to five-year cycle, every metropolitan and municipal area needs to do a revaluation of all properties in its jurisdiction in order to comply with its obligation to charge rates based on the use and valuation of the properties in line with the Municipal Valuations Act.

This has just been completed for Mangaung Metro and property owners may launch objections if they are not happy with the outcome.

The concept is that rates are levied at an agreed rate based on the value set for a property by the city valuer.

City valuers can be in-house professionals or can be employed by the local municipality from outside.

They have to be registered valuers.

Municipal valuation is a specialised form of valuation called mass valuations because they are intended to revalue a large number of properties based on sampling.

In effect using aerial photos and past information, the valuer will assess the size of properties and place a value per square metre on the property.

Some variation is allowed depending on which area the property is situated so that a high-income level home of 200 square metres would not have the same “municipal value” as a mid- or low-cost housing area.

Age of the property, general conditions in the area, type of finishes will also have an effect on the value placed on individual properties.

The valuer will also do spot valuation to confirm their thinking or make adjustments where necessary.

For example, a slum building in the centre of town will have a different valuation placed on it from an identical new building next door.

During the valuation process the valuer will also take into account the location of a property so that a house next to a service station is likely to have a lower value than an identical one two doors away.

The valuation roll is used to re-value properties in the metro area so that rates and taxes can be charged on property owners.

The intention of the valuation roll is to set a building’s value at its realistic market value.

This is a mammoth task and errors can creep in.

The process allows you a short time to object to the value that has been set on your property by the city valuer.

If you do not agree with the new valuation, you will need to fill some objection forms to state your case.

It is important to note that there are different forms to be used for normal properties, small holding properties, and farms.

When you object you can only do so objectively, by showing that the value that they have given is unrealistic in the current market.

You can also object if the zoning for your property is incorrect or if the owner’s details are incorrect.

Whatever objection you make must be accompanied by some sort of proof of your reasons for objection.

If your objection is based on the price, a valuer’s valuation should be attached as proof that an independent professional person has assessed the probable selling price of your property.

For incorrect names of owners, a copy of the title deeds would suffice.

A zoning certificate showing the correct zoning of a property can be obtained from the 10th floor at the metro’s Bram Fischer Building.

Please note that if you use your premises for any other purpose than what it was zoned for – for example a residential house as a business property – then the higher use will be used to set the rates that will be levied.

As a professional associated valuer myself, I will be happy to assist owners with desktop or full valuations of their properties.

Desktop valuations are done using online information available to valuers while a full valuation is one that includes an inspection of the property being valued.

Desktop valuations are not expensive while full valuations are slightly more expensive.

I can be contacted on 082 881 4711 or by email: mike@platinumglobal.co.za.

  • Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.

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Property

Gas it out, give Eskom the boot

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ALTERNATIVE SOLUTION . . . Gas can be used for heating water, ovens and stoves in general

Electricity has simply become unaffordable. And, as if that’s not enough, it’s not always available.

In recent months, the power utility has been churning out media statements explaining the loss of generation at various power stations and pleading with consumers to use electricity sparingly.

While the updates are important, consumers naturally expect electricity to be available whenever they turn on the switch.

The recent tariff hike of over seven percent in Mangaung Metro has proved quite steep to most households and it might not be far-fetched to expect another round of hikes in the coming months.

I strongly believe it’s now time to seriously consider other practical solutions to end this double inconvenience of high prices and inavailabilty of electricity.

Alternatives like solar and gas could ease the problem quite significantly but it comes at a cost.

In fact, the installation costs might be quite discouraging, but once the systems are in place, there are no major expenses to be incurred – this including solar electricity, solar water heaters and gas.

Electrical geysers chew electricity while solar heaters are effective and efficient.

Natural gas is also a realistic alternative.

The system is cheaper to install by far and gas cylinders normally last for months.

Gas can be used for heating water, ovens and stoves in general.

Larger systems can also have central heating.

Gas is readily available and suppliers have delivery services for 10kg cylinders and above.

And unlike electricity, gas geysers only heat water on demand, which means that you don’t sit around with pre-heated water in your geyser.

It only heats on demand.

And when cooking, pans heat up quickly and, importantly, cool down when the gas is switched off.

It is a different type of heat and is great for making oven bread.

Worth a try!

  • Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.

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Local

Langenhoven Park chain store robbed

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SHOP ROBBERY . . . The Walk Centre in Langenhoven Park

Bainsvlei police in Bloemfontein have launched a manhunt for suspects involved in business robbery at a chain store at The Walk Centre in Langenhoven Park on Wednesday.

The complainant, who is the manager of the shop, told the police that two men walked into the shop pretending to be customers before robbing the shop.

“Suddenly they pulled out firearms and accosted the four cashiers and instructed them to walk back into the complainant’s office,” police spokesperson Lieutenant Colonel Thabo Covane said in a statement.

“The suspects robbed the shop of different brands of cellular telephones as well as an undisclosed amount of money, and fled the scene in a white Renault Clio with registration number HRT 558 FS,” he added.

Police were called to the scene and they are now investigating a case of business robbery.

Covane said anyone who might have information that could lead to the arrest of the suspects may contact Captain Thapelo Motseki on 082 466 8405 or call the SAPS Crime Stop number: 08600 10111. Alternatively, information can be sent via MySAPS App. – Staff Reporter

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Property

Duets are sectional title too

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A duet unit is by definition a two-unit sectional title scheme. Or at least is supposed to be.

However, I have seen these mini schemes with up to five units. Not sure how they get away with it.

Either way they are still mini sectional title schemes and have to be treated like their big brothers – but they aren’t.

Usually, each owner has their own rates account, own water and electricity account and just does their own thing. But that is where the complications come in.

Some owners have a bond and thus insurance. Some bought cash and forgot.

A body corporate is supposed to have a body corporate policy on all the buildings.

Let’s say that there is a fire in an insured unit but it also results in the building down of an uninsured unit.

And because this is a body corporate and all parties are trustees that are expected to have a body corporate policy, they will be equally negligent.

That means that the owner will have to pay 50 percent — or whatever the Participation Quota (PQ) ratio is — of the uninsured unit owner’s loss.

Would you like to be in that position? I don’t think so.

The same applies to maintenance.

So, if your neighbour thinks that his roof needs to be replaced, you will be liable for that same PQ part of the replacement cost.

The trouble is that nothing will happen while everyone is happy and things are running smoothly, but when there is a major problem, people look for solutions to their financial crisis.

It’s not worth it.

Run your mini scheme properly and contact Community Schemes Ombud Service if your neighbour won’t.

  • Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.

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