The South African Institute of Valuers (SAIV) would like to encourage property owners to have a better understanding of the municipal valuation process and its effect on rates and taxes payable.

The recent ruling by the Supreme Court which states that the current owner can be held liable for any arrears in taxes, rates and other utilities incurred by past owners – going back up to 30 years – comes as a blow to the property market.

The latest ruling by the Supreme Court of Appeal relating to rates and taxes on a property is most concerning for property buyers and could have lasting implications regarding the risk of ownership. 

The South African Property Owners Association’s (SAPOA) comparison of the level of rates and taxes levied in each of the eight metropolitan municipalities reveals some variance in the cents in the rand rate across the main property types.

Slow economic growth and high operating cost inflation - especially rates and taxes, and electricity – are challenging the commercial property sector and placing strain on South African business.

Adrian Saville, CIO of Cannon Asset Managers, looks at ways to boost the South African economy.

South African consumers are R1.56 trillion in debt to credit providers; and 53% of this debt is owed to the banks for Mortgages.

Latest research into municipal rates and taxes confirms what landlords already know: municipal rates and taxes cost twice as much as they did a decade ago, and represent an ever-increasing slice of operating costs.

Ever since alert to escalating municipal costs throughout South Africa, the SA Property Owners Association (SAPOA) has appointed specialist consultant Rates Watch (Pty) Ltd to research municipal budgets for the coming year.

Simultaneous increases in the Rates Factor and property valuations resulted in municipal rates levied on commercial property owner’s rocket in July this year. 

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