PROPERTY INTELLIGENCE
This year President Cyril Ramaphosa announced the commencement of the Property Practitioners Act ( PPA ) from 1 February 2022 which brought a number of changes to the industry including the need to disclose defects in both sales and rentals . We also have the Municipal Property Rates Act 6 of 2004 that aims to regulate the power of a municipality to value and rate immovable properties located within the boundaries of municipalities . Therefore , there is a direct link between how the government performs its constitutional mandate and property . potential investors will lose interest and confidence . There is a strong association on how a municipality is governed and your property value . This can also be linked with the power local government has to impose rates on a property . If the process is flawed it will impact on your property rates and tax bill that you have to pay every month may not be a true reflection of your property ’ s market value .
The influence the local government has on your property value ?
The institutional stability of our local government has a direct impact on the property value . If a particular municipality is dysfunctional , properties that are located in those areas value ’ s are bound to depreciate because
54 OCT 2022 SA Real Estate Investor Magazine