Joburg valuations – another financial knock

OWN CORRESPONDENT

Many building owners and businesses claim they will be forced to close down or abandon their buildings, after receiving rates increases of up to 1 000%.

The DA-run council in Midvaal has also imposed huge rates in that municipality.

The increases will be particularly hard on pensioners as every property valued at over R2 million will now be charged rates, whereas they were previously exempt.

Isidore Spector, an 86-year-old pensioner from Glenhazel, said he has never paid rates on his property, valued at R1.85 million. The value has now been pegged by the City at R2.7 million.

“I don’t know how I am going to afford this. I have never paid rates before and I do not have access to the Internet to object. I am going to have to get one of my children to assist,” he said.

Many other residents, apartment building owners and businesses, say they are going to be squeezed out of their homes and businesses and may be forced to shut down, resulting in job losses.

Building owners say they will have to pass these increases on to their tenants, adding that the smaller retail shops would not be able to afford the increases and would probably close down.

On Tuesday, Johannesburg Mayor Herman Mashaba responded to the outcry by announcing that about 8 000 properties will be revalued. He said that, following engagements between the City and the independent municipal valuer, these property owners will begin receiving Section 78 notices from the City for properties that appear to be overvalued – some by over 100%. These owners should start receiving the renewed valuations from Friday, March 16 and will have 30 days in which to object.

To date, the City has received 4 000 objections to the valuation roll.

“Further to this, the capacity of our walk-in centres is being addressed to deal with the increase in residents seeking assistance with their objections. We have also employed an additional 20 valuers internally to assist with objections,” he said.

However, owners will have to start paying the escalated rates from July 1 until their objections are heard, which could take up to five months. The appeal process, which is conducted by the Gauteng provincial government, could take up to 18 months.

More than 44% of properties in Joburg had value increases of between 60% and 1 000%.

Harry Sewlall of Parkmore said: “Property owners have been dealt a killer blow in the form of exorbitant hikes in property values to entrap homeowners in a higher rates bracket. My modest three-bedroom property, which has had no extensions done to it during my residency, has shot up from the present market value of R1.55 million to R2.81 million. This new evaluation constitutes a 75% increase.”

Greenside resident Gabi Pisanello said her valuation has increased from R1.98 million to R3.48 million.

“On my eastern boundary, I have a parking lot,” she says. “On my northern boundary, I have restaurants. I have been trying to sell my house for 10 years and I cannot get an offer even for the municipal value! The last time my house was on the market was from October 2017 until January 2018. How did they get to this valuation?

“Most estate agents have valued my property at about R2.5 million to R2.6 million. I am in the process of lodging an objection. This is exploitation,” she added.

Mark Rubenstein, director of the Blue Saddle Ranches estate in Midvaal, said the municipal rates increase issue is “a time bomb waiting to happen”.

“I represent the Blue Saddle Ranches homeowners’ association, but have gathered support from the Midvaal municipal area. In our estate alone, most property valuations have gone up by 34%. We are also losing our 75% agricultural residential rebate – we are losing a 75% discount currently offered by the municipality.

“This means that if I use the current factor, excluding any inflationary increases, my rates are going up 323% from R1 067 to R4 519.”

The Melrose North Ratepayers’ and Residents’ Association has appealed to all property owners to lodge their objections.

Said Elsa Kruger: “Our reasons for objecting include uncontrolled building and the increased densification, which puts pressure on the infrastructure, causing frequent power outages. There is also an increase in crime. Let us let the city know that we are not taking this exploitation lying down,” she said.

Objectors have to get their complaints registered online. If owners do not have access to the Internet, they can visit the walk-in centres and will be assisted. The website address is www.joburg.org.za.

A petition, called #JhbRatesMustFall, already has more than 1 600 signatures.