Transcript Document

Background on
Valutations Roll
process and
compilation
12 OCTOBER 2007
CITY OF JOHANNESBURG
2008 GENERAL
VALUATION ROLL
Presented by:
Werner Sarvari
Director: Valuation Services
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
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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
The valuation roll is the rates base of the COJ
All our other business in terms of the Act flows
from this function
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BASIS OF VALUATION
MARKET VALUE (of the
property as a whole)
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MY HOUSE…
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MY HOUSE…when I want to
sell…
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MY HOUSE…when I apply for
finance…
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MY HOUSE…when it must be
valued for rates purposes…
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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…
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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
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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
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What should be considered during the
valuation process?:
• Individual sectional title units
• Land and improvements
• Any illegal immovable improvement
• Any illegal use
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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
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Three most often used methods of
valuation:
• Market (direct comparison) approach
• Income (indirect comparison) approach
• Cost approach
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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
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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.
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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
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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
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Notes on the COJ process…
• 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
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85%
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PROGRESS
12/10/2007
Implementation:01/07/2008
Objections Feb-Apr 08
Handover Jan 08
Public awareness Sep-Dec 07
Printing: November 07
Draft roll:28/09/2007
GV2008
END
QUESTIONS?
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