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A property owner in Wonderboom South, Pretoria, got the shock of his life when he recently received a notice from the City of Tshwane stating that the single residential house where he has been living since 1992 has been valued at R11 million, up from the current R930 000.
Wonderboom South is a middle-class suburb in the Pretoria Moot with big plots and lots of trees. Selling a house for R11 million in this area would be a rarity.
The owner, who asked to remain anonymous, says he has not made any big improvements that could justify the increased valuation.
Another Tshwane ratepayer and Moneyweb reader wrote on condition of anonymity: “I bought my house just over 5 years ago in Sinoville Pretoria (a very average neighbourhood) for R1 170 000. My City of Tshwane account values the property at R1 100 000. However, the proposed valuation (on the new general valuation roll) is R1 500 000! An increase of over R300 000!
“Every person that I have spoken to has a proposed valuation increase of a few hundred thousand. One lady in my office checked her mom’s property (in Lyttleton Manor) and it has gone from a valuation of R650 000 to R1 500 000! A R900 000 increase!
“Is this correct and if it is, why such a massive increase in such a short period of time?” he asked.
The reader provided Moneyweb with supporting documentation showing the different valuations.
In all cases, the owners did not make major improvements, and there are no other known facts that, in their view, would justify a drastic increase in the value of the property.
f owners fail to object to the value attached to their properties in Tshwane’s recently published new general valuation roll, these values will stand, and they will be billed for property rates on that basis from 1 July this year.
Ben Espach, director at Rates Watch, cautions that the percentage increase from the current value to the new one does not determine the validity of the objection.
“It is all about market value – is it reasonable to expect the property could have been sold at this value – on the valuation date, which in this case is 1 July 2024?”
On the other hand, it may be a clear mistake, with an extra zero added to the amount by mistake, Espach says.
Read the full article on Moneyweb here.