NELSON Mandela Bay Municipality’s valuation roll notices and the increased property values provided therein as well as the proposed increase in property rates, had numerous property owners shocked and pensioners concerned about the impact it will have on their finances.
It goes without saying that property valuations must be adjusted from time to time to reflect realistic values. Therefore, if a property’s value is assessed to have increased, the monthly property rates payable will increase proportionately.
“Having assisted several properties owners thus far with actual, current and comparable property prices, the increases applied to these properties, were exorbitant and most definitely not market related in any way,” said Charlotte Vermaak, Managing Principal Harcourts Mandela Bay|UD.
“Since the new valuations were distributed, we have been inundated with requests from property owners who are extremely unhappy with the steep increases on their property valuations and the effect that will have on their municipal rates.”
According to Vermaak, it would appear the NMBM didn’t consider what has happened with property prices over the last 12 months. On average, in the traditional suburbs of the metropole, property prices have increased by 1.7%, nothing near the proposed 9.5% increases allocated by the municipality.
Highest increase of all metros
Vermaak said from what Harcourts has managed to find out it would appear as if Cape Town, Johannesburg, and eThekwini are implementing tariff increases in the region of 4 – 4.9%, whereas Ekurhuleni are implementing tariff increases in the region of 7.5%.
“This remains a question on everybody’s lips. With the service delivery and general condition and cleanliness of our metropole deteriorating, property owners are of the opinion that these increases will be contributing to increased salary bills, municipal inefficiencies and wastage rather than improving on service delivery,” said Vermaak.
National governments’ targeted Consumer Price Index (CPI) band is between 3-6% while actual inflation was at an average of 3.3% for 2020.
“These proposed tariff increases are, therefore, unrealistic given the economic state of the country. Any rates increase, if any, should remain within the CPI band.
“This is certainly not the year I which ratepayers and consumers must be forced to fund municipal inefficiencies and wastage and place further strain on the residents of Nelson Mandela Bay at a time when they can ill afford it. Increases should be kept conservative by cutting costs and expenditure where possible. Rates and taxes have been the fastest growing property operating cost over the last few years,” said Vermaak.
Should any property owners be unhappy with the municipal valuation of their property, they can object by following the municipality’s process. Harcourts UD can assist in providing actual, market related comparable information as well as the objection forms to any property owner who requires our assistance in this regard.
- The official form for the lodging of an objection in relation to a specific individual property, is obtainable at all Customer Care Centres or on the Nelson Mandela Bay Municipality’s website www.mandelametro.gov.za and the closing date for objections is 30 April 2021. No late objections will be accepted.
OTHER COMMENTS:
Hennie Fourie, pensioner and Despatch property owner:
“The value of my property increased by nearly R300 000. It is outrageous. Property prices have during this COVID-19 pandemic dropped by between 15-17%. I am a pensioner; my income has not increased. Did someone press the wrong button or does the municipality want us to lose our properties?”
Hennie Fourie, pensioner and Despatch property owner:
Sandile Adam, Despatch property owner:
“Personally I’m devastated by the blind decision to inflate the property rates by an exorbitant 9.5% which is not favourable to us working class and rate payers.
The increase is mischievous, how can they forget the negative impact of COVID-19 on the economy, resulting in the closure of businesses and job losses? I think, but might be wrong, that they did not consider the intricate matters around economics of the metro. Where will our people get the money from?”
Bill Harington, FF Plus Researcher:
“Raising property valuations and taxes is merely a way for the Nelson Mandela Bay Municipality to balance its books and not to improve service delivery.
The FF Plus is opposed to any increase in property valuations in the Nelson Mandela Bay metropole which will lead to increased property taxes. The current economic climate in the country and the prevailing low-interest rates do not justify the expected rise of 9.5%.
Measured against the current inflation rate of about 5%, this confirms the FF Plus’ position with regard to no increase in property taxes.
It is unfair to further tax the residents of the metro. The NMBM should rather act as a responsible and concerned municipality.
Judging by the poor service delivery in the NMBM, there is no link between the planned increased property tax and economic growth in the metro.
The metro should rather focus on collecting its outstanding debt that can be attributed to the culture of non-payment caused by the ANC’s ideology.”
Pieter Terblanche, Ward 51 Councillor:
“Contact the Nelson Mandela Bay Municipality communications department. I do not have the authority to comment on this matter (increased property valuations and property rates and taxes).”
Nelson Mandela Bay Municipality:
The NMBM communications department was contacted on Monday morning for comments on this matter. At the time of going to print on Wednesday morning, no response nor comments were received.
