#RatesMustFall: 700% property value shock

thechamp said:
Johannesburg - A Joburg CBD building owner, Rees Mann, got the shock of his life when he opened his municipal valuation bill and found it had increased by more than 700% - from R3million to a staggering R25m. He joins the fast-growing list of home and business owners up in arms over what they term excessive valuations that will force them off their properties.

The Mann family have been active in the inner city for many years, never moving out despite the decline in the Pritchard Street area, which was once a thriving clothing-manufacturing hub. Mann still runs a sewing and haberdashery business. He was the founder of the Fashion District and helped train hundreds of designers and dressmakers, some of whom now rent his properties.

Mann also owns other buildings in the inner city, all of which have greatly increased in their valuations.

https://www.iol.co.za/news/south-africa/gauteng/ratesmustfall-700-property-value-shock-13537007
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3 Million only?

105 PRITCHARD STREET JOHANNESBURG property was sold for 12Mil on 2017/05/23, 499 sq.meter

Rees Mann owns Johannesburg Sewing centre at 109, Pritchard Street, 498 square meter - Let us buy this from Mr Mann for 4 Million and help poor man make a million profit - let us do some crowdfunding here.
 
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Ockie said:
Guys, how can you work out the new rates with the new value? Work out the percent difference between old and new value and then just add that percentage diff to the rates you currently paying? :confused:
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its something like 0.007 cents x value = annual rate. / 12 gives monthly
 
But can you actually sell it for that money? In which case why moan...quickly sell it before someone catches on.
 
yebocan said:
got me thinking, the constant increase in property value in CT, is it real or just inflated property value, from the city's side?
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It's real in the sense that they use the last sale price of other properties in the area to value the existing value other properties in the same area.

So you get these problems where a piece of **** which is worth 650k gets valued as 3 Million or whatever crazy amount because a house sold for 20 Million on top of the hill.

See this kind of thing especially in Orangezicht and Tamboerskloof.

There is no way you would be able to sell the place for the City's rated value though.
 
SauRoNZA said:
It's real in the sense that they use the last sale price of other properties in the area to value the existing value other properties in the same area.

So you get these problems where a piece of **** which is worth 650k gets valued as 3 Million or whatever crazy amount because a house sold for 20 Million on top of the hill.

See this kind of thing especially in Orangezicht and Tamboerskloof.

There is no way you would be able to sell the place for the City's rated value though.
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Actually, you have to see how quick a piece of **** sells in CT. Foreigners and Gauthengers flock to CT and heard property price keeps going up so they buy what they can in a frenzy at Bullshiit prices because it will keep going up. This makes the Bullshiit valuations real.
 
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Jola said:
No it's not, their valuations are often way above the market value.
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Check on the site, it’s an average of the properties in your area or street and what they sold at. Market value average or something.
 
Vrotappel said:
DA, quickly destroying any appeal they had.
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definitely, that will be very high possibility they will lose the control of the city and will never go to win it back.

for me, if they are not going to fix this problem, I will not go to vote them again from next year.

That is the most stupid move which a politician can make that I ever know.
 
surface said:
And illiterates still keep voting DA, don't you miss Tau now
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Vrotappel said:
DA, quickly destroying any appeal they had.
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Jakes147 said:
My evaluation has more than doubled from 1.15M in 2013 to 2.6M. :sick:

I also received a R3000 water bill the other day when they took a week to fix a gushing leak at my meter. They told me they cant reverse it because the onsite guys wrote that there was no flooding and it didn't affect my reading.

The DA is seriously starting to piss me off.
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xrapidx said:
Welcome to the DA.

My property in Cape Town was increased twice last year for a total of 50% increase in value in one year.

Objections will be attended to "when they get to it" - you must keep paying in the meantime. I logged an objection in October, still haven't heard anything.

About 120% since 2015.
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Hey no, don't start on about the DA. It isn't a popular thing to do around here. The DA are wonderful. The DA are saints. The DA are perfect. The DA never do anything wrong. The DA are here to save us all. (sarcasm).
 
Zoomzoom said:
Hey no, don't start on about the DA. It isn't a popular thing to do around here. The DA are wonderful. The DA are saints. The DA are perfect. The DA never do anything wrong. The DA are here to save us all. (sarcasm).
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The DA want to leave a positive legacy because they lose Gauteng at next elections.:)
 
Worked it out. Rates on the property is going to pretty much double. :wtf:

This is going to have a MASSIVE impact on residents. I understand that the previous ANC government did not do their job and left the valuation roll unchanged to donkey years, but to hit people with a 40 - 700% increase will ruin people. Perhaps a more frequent increase over a few years will be more sustainable for people to absorb?
 
terencej said:
Actually, you have to see how quick a piece of **** sells in CT. Foreigners and Gauthengers flock to CT and heard property price keeps going up so they buy what they can in a frenzy at Bullshiit prices because it will keep going up. This makes the Bullshiit valuations real.
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Sure there is getting slightly more than it's worth.

I'm talking about crazy money figured which most people couldn't afford or get a lot more for around the corner.
 
Ockie said:
Perhaps a more frequent increase over a few years will be more sustainable for people to absorb?
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The only morally correct approach would be to not have property taxes at all. If one owns a property, what business is it of the government? (of course I'm talking about how things currently work, not the land grabs that are looming)

They can charge you for the installation of a service once-off and charge you for your use of the service in relation to how much you end up using. Like every private sector service provider does with much success. Perpetual tax for zero benefit to the tax payer is just bs.
 
c3n0byt3 said:
Apparently they use "internationally accepted methodologies and practices" to figure out the valuation.
There's a write-up about the method on their website but they say it is ideally driven by on-site valuation officer reports.
And we all know those never really happened.
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Interesting how we need 'African solutions to African problems' for most things but when it comes to fleecing the tax payer, then 'internationally accepted methodologies and practices' seem to be followed :rolleyes:
 
NarrowBandFtw said:
The only morally correct approach would be to not have property taxes at all. If one owns a property, what business is it of the government? (of course I'm talking about how things currently work, not the land grabs that are looming)

They can charge you for the installation of a service once-off and charge you for your use of the service in relation to how much you end up using. Like every private sector service provider does with much success. Perpetual tax for zero benefit to the tax payer is just bs.
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How is the road painting, grass cutting and all such things going to be paid for? Would you prefer a municipal income tax?
 
NarrowBandFtw said:
Fuel levy


Depends, grass cutting in a nice park? Charge for entry.
Grass cutting on the side of the road? Same as road painting.


Hell no!
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There are services that need to be paid which they cannot get a user pays income from, it's not like people love the user pays principle anyway. God, now they have to fence off all parks at added expense.
 
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