Rising municipal rates and taxes is a hot-button issue - one that negatively affects, not only operating costs and gross rentals, but also makes demand on property management resources.

With inflation still within the target range, but with concerns following a round of fuel price increases and other potential inflationary impacts, as was anticipated, the Monetary Policy Committee kept the repo rate unchanged following this week’s meeting, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Every three years, the City of Cape Town updates their General Valuations roll to ensure property rates are adjusted in proportion to property values.

Today’s (28 March 2018) announcement of an interest rate cut of 25bps, coupled with Moody’s decision to not only leave South Africa’s credit rating unchanged at one notch above junk status, but to also upgrade the outlook from negative to stable, are positive factors which should provide welcome stimulus for the residential property market, says Dr Andrew Golding, CEO of the Pam Golding Property group.

Property owners in Johannesburg, Ethekwini and many other municipal areas only have a short time in which to lodge any objections to the new municipal valuations of their properties – and to the new municipal rates based on these valuations that they will be charged from July.

The cost of living in the country's economic hub will rise substantially as of July 1.

With the first of July comes the beginning of the new Municipal Financial year. Alas for Johannesburg and other city ratepayers that means digging in deeper to those shallower pockets

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