I have an idea for a new thread...

[geomark]

[Shebeen]

then it would be warmer...

[Shebeen]

Only asking R25M.

 

https://www.property24.com/for-sale/harbour-island/gordons-bay/western-cape/7827/107915865

asking R25m, for a house valued at R7.6m

 

http://web1.capetown.gov.za/web1/gv2018/RatesEstimation?parcelid=hel005749000000&id=21719&rateCategory=0101&propertyValue=7600000

 

i wonder if he takes the lift to his bedroom after working out in the home gym

[Long Wheel Base]

asking R25m, for a house valued at R7.6m

 

http://web1.capetown.gov.za/web1/gv2018/RatesEstimation?parcelid=hel005749000000&id=21719&rateCategory=0101&propertyValue=7600000

 

i wonder if he takes the lift to his bedroom after working out in the home gym

I wonder why such a big difference in values?

Even if it sells for half the asking price, that is still a lot more than what it's valued at.

[Shebeen]

stop talking to yourself...

 

 

[splat]

asking R25m, for a house valued at R7.6m

 

http://web1.capetown.gov.za/web1/gv2018/RatesEstimation?parcelid=hel005749000000&id=21719&rateCategory=0101&propertyValue=7600000

 

 

It's only worth what someone is willing to pay

 

I wonder why such a big difference in values?

Even if it sells for half the asking price, that is still a lot more than what it's valued at.

[Shebeen]

I wonder why such a big difference in values?

Even if it sells for half the asking price, that is still a lot more than what it's valued at.

because mr burger doesn't want to pay too much in rates.

[bertusras]

I wonder why such a big difference in values?

Even if it sells for half the asking price, that is still a lot more than what it's valued at.

 

Council valuations are rarely anything to go by though. The city needs to make X amount per year from property taxes. There are Y amount of properties. Divide X by Y and apply some ratios, now you have a value. That's all that it is.

 

 

Like splat said, the real value is what someone else is able and willing to pay. Nothing more, nothing less.

Edited August 17, 2020 by bertusras

[Shebeen]

Council valuations are rarely anything to go by though. The city needs to make X amount per year from property taxes. There are Y amount of properties. Divide X by Y and apply some ratios, now you have a value. That's all that it is.

 

 

Like splat said, the real value is what someone else is able and willing to pay. Nothing more, nothing less.

 

ja but. if the house is undervalued by a factor of 3 then this guy is getting a discount on rates. the whole process is supposed to actually reflect the market value as close as possible.

 

he probably complained that R7 is too much for a pondok with no grass and a blazing south easter for 6 months of the year.

 

 

another one going for R37m but paying rates on R9m

https://www.property24.com/for-sale/muizenberg/cape-town/western-cape/9025/108877608

[LongDonkey]

Browsing through my usual auctions and then saw this. I am sure even the opening bid will be over my budget but will definitely log in and watch the auction on the day. 

I wonder if this is a hubber?????

Go to the virtual walk through and check the gym and garage. A lefty in both.

 

https://www.whauctions.com/#!/itemDetails/4166/514435

What a dump!

[Hairy]

ja but. if the house is undervalued by a factor of 3 then this guy is getting a discount on rates. the whole process is supposed to actually reflect the market value as close as possible.

 

he probably complained that R7 is too much for a pondok with no grass and a blazing south easter for 6 months of the year.

 

 

another one going for R37m but paying rates on R9m

https://www.property24.com/for-sale/muizenberg/cape-town/western-cape/9025/108877608

that mentality is also flawed.

 

if you have two houses that are identical standing next to each other ... the left hand house has a cheap as chips interior fit out and services, the right hand house went to town with a hightech security system, awesome automated house and equipment, exceptional finishes and fittings.

 

now the right hand house would naturally sell for more than the left hand house ... why should he be paying more rates and taxes? They are using the same roads to get to the house, the same municipal collections, etc? The right hand house will pay more in tax again when selling his property too.

[bertusras]

ja but. if the house is undervalued by a factor of 3 then this guy is getting a discount on rates. the whole process is supposed to actually reflect the market value as close as possible.

 

Yes, and no.

 

Having gone through this whole exercise the past few months (I work for a property developer), it's not quite a simple as just looking at the value.

 

Tshwane's last General Valuation was in 2016 (it's done every 4 years) when the property market was pretty high. Since then, REIT's have plummeted, vacancies have increased, rentals have come down significantly. Yet, the CoT decided to increase the values of our properties across the board, by between 20-40%. We immediately thought, jeeze, now we're in trouble and started gathering information to appeal the new valuations.

 

Much later after having put all the facts together, we had found out that the multiplication factor to calculate the actual Rates & Taxes had also been reduced, which meant that the actual Rates & Taxes would stay more or less the same, or come down in some cases. Like I said previously, it has got nothing to do with the actual value of the property, and more to do with the income that the City is supposed to generate.

 

If you believe that his valuation is too low, you are very welcome to submit an appeal to the City. 

 

Edit: Is your property valuation an accurate reflection of your perceived value?

 

Edit 2: From the Local Government: Municipal Property Rates Act

 

 

46. (1) Subject to any other applicable provisions of this Act, the market value of a

property is the amount the property would have realised if sold on the date of valuation

in the open market by a willing seller to a willing buyer. 

(2) In determining the market value of a property, the following must be considered

for purposes of valuing the property:

(a) The value of any licence, permission or other privilege granted in terms of

legislation in relation to the property;

(b) the value of any immovable improvement on the property that was erected or 

is being used for a purpose which is inconsistent with or in contravention of

the permitted use of the property, as if the improvement was erected or is

being used for a lawful purpose; and

© the value of the use of the property for a purpose which is inconsistent with or

in contravention of the permitted use of the property, as if the property is being 

used for a lawful purpose.

 

 

What is Market Value?

 

The market value of a property on a particular day will be:

- The price paid by a willing buyer to a willing seller;

- On that day;

- In a free and open market;

- Where neither of the parties was under any particular pressure to buy or sell; and

- The parties to the sales transaction are not related to each other in any way.

 

 

45. (1) Property must be valued in accordance with generally recognised valuation

(2) For the purposes of subsection (1)-

practices, methods and standards, and the provisions of this Act.

(a) physical inspection of the property to be valued is optional; and

(b) comparative, analytical and other systems or techniques may be used,

including aerial photography and computer-assisted mass appraisal systems

or techniques, taking into account changes in technology and valuation

systems and techniques.

(3) (a) If the available market-related data of any category of rateable property is not

sufficient for the proper application of subsections (1) and (2), such property may be

valued in accordance with any mass valuation system or technique approved by the

municipality concerned, after having considered any recommendations of its municipal

valuer and as may be appropriate in the circumstances.

(b) A mass valuation system or technique that may be approved by a municipality in

terms of paragraph (a) includes a valuation system or technique based on predetermined

bands of property values and the designation of properties to one of those bands on the 

basis of minimal market-related data.

 

The value is not determined by the Council itself, but is rather contracted out to 3rd Parties:

 

 

I found another source online that made specific reference to the computer-assisted mass appraisal systems (CAMA):

 

“Based on geographical information and recent sales in your suburb, the city uses a CAMA system to determine values of all properties. These figures are released once every four years and are published online on the various municipal websites.”

 

Edited August 17, 2020 by bertusras

[Shebeen]

that mentality is also flawed.

 

if you have two houses that are identical standing next to each other ... the left hand house has a cheap as chips interior fit out and services, the right hand house went to town with a hightech security system, awesome automated house and equipment, exceptional finishes and fittings.

 

now the right hand house would naturally sell for more than the left hand house ... why should he be paying more rates and taxes? They are using the same roads to get to the house, the same municipal collections, etc? The right hand house will pay more in tax again when selling his property too.

ja obviously it's not perfect.

obviously it's skewed towards the rich paying more to cross subsidise the poor (it's a tax, just like income tax)

 

been a crap system since before this picture was taken, but if you have a better suggestion that is workable, by all means go for it.

 

 

i was just pointing out that whoever buys this place will get a bit of a shock when they see how much rates could spike when it's revalued in 2021

[geomark]

[geomark]

[WeekendWarrior80]