CITY OF JOHANNESBURG 2008 GENERAL VALUATION ROLL 12 OCTOBER 2007 Background on Valutations Roll...
-
Upload
leo-collins -
Category
Documents
-
view
225 -
download
4
Transcript of CITY OF JOHANNESBURG 2008 GENERAL VALUATION ROLL 12 OCTOBER 2007 Background on Valutations Roll...
CITY OF JOHANNESBURG 2008 GENERAL
VALUATION ROLL
12 OCTOBER 2007Background on Valutations Roll process and compilation
Presented by:Werner Sarvari
Director: Valuation Services
2
Responsibilities of the Municipal Valuer in terms of the Municipal Property Rates Act:
• Perform a General Valuation of municipality
• Produce General & Supplementary Valuation rolls
• Receive and consider objections
• Provide administrative support to the Valuation Appeal Board
• Customer service
3
Primary Responsibility:
To do a general valuation of all properties in the municipality and produce a General Valuation
Roll at least once every 4 years
All our other business in terms of the Act flows from this function
The valuation roll is the rates base of the COJ
4
BASIS OF VALUATION
MARKET VALUE (of the property as a whole)
JAAP Partnership programme 5
MY HOUSE…
JAAP Partnership programme 6
MY HOUSE…when I want to sell…
JAAP Partnership programme 7
MY HOUSE…when I apply for finance…
JAAP Partnership programme 8
MY HOUSE…when it must be valued for rates purposes…
9
What must be determined according to the Act?:
Market value is the most probable price that a property would realise if sold on the open market, at the date of valuation, between a
willing buyer and a willing seller
TAKE NOTE…
10
What must be determined according to the Act?:
• Market value is most probable price
• Date of valuation (COJ = 1 July 2007)
• Willing buyer & seller must meet certain criteria and are hypothetical
• Open market
11
Some interesting changes in the new legislation:
• Physical inspection is optional
• Comparative and analytical methods may be used, including Computer Assisted Mass Appraisal (CAMA) systems
• Aerial photography may be used
• Use of predetermined bands is allowed
• Any other system may be used
12
What should be considered during the valuation process?:
• Individual sectional title units
• Land and improvements
• Any illegal immovable improvement
• Any illegal use
13
What should NOT be considered during the valuation process?:
• Movable improvements (use, method of fixture and intention)
• Improvements under the ground (mining)
• Plant & machinery
• Annual crops
14
Three most often used methods of valuation:
• Market (direct comparison) approach
• Income (indirect comparison) approach
• Cost approach
15
The Market Approach
• Primarily for residential properties
• Most accurate method
• Analysis of the market through use of sales
• Obtain additional information
• Apply market information to subject property
16
Computer Assisted Mass Appraisals
CAMA is a system that uses property data to develop various models that can be applied to
specific pockets of property to derive most probable values, depending on the quality (not necessarily quantity) of data (input) and the required result (output). Models can range from very simple to
extremely complex.
17
The Income Approach• Primarily for income producing properties, e.g. offices, flats (not sectional title), shops, factories
• Most accurate method where leases are involved
• Analysis of the market through leases (indirect comparison – i.e. income & expenditure)
• Obtain additional information
• Apply market (lease) information to subject property
18
The Cost Approach
• Primarily for specialised properties or where little or no market information exists, e.g. schools, churches
• Assumptions make this the least reliable method
• Analysis of the market in terms of land values, cost of reconstruction and depreciation
• Obtain additional information from other sources
• Apply market information to subject property
19
• We do not inspect all properties internally
• We use CAMA in a basic form
• We make use of additional resources to obtain property data, e.g. GIS, Building Control, Property brokers, Deeds office, questionnaires, public awareness, website, etc.
• We apply international best practices (pre-and post completion of the roll)
• We comply with legislation
Notes on the COJ process…
20
GV2008PROGRESS12/10/2007
85%
Imp
lem
enta
tion:
01/
07
/20
08
Dra
ft ro
ll:2
8/0
9/2
007
Pri
ntin
g: N
ove
mb
er
07
Pu
blic
aw
are
ne
ss S
ep-D
ec
07
Ob
ject
ion
s F
eb-
Ap
r 08
Ha
ndo
ver
Jan
08
21
END
QUESTIONS?