Think of a residential property worth R18-million and luxuries such as manicured lawns, an Olympic-size heated pool, home cinema and gourmet kitchen spring to mind.
What would not come to mind is a modest block of six minuscule flats with peeling paint and washing hanging on the balcony, in a rundown suburb close to Johannesburg's city centre.
Businessman Michael Dick, owner of Rosel Court in Bellevue, is one of thousands of Johannesburg residents who are fuming over new municipal valuations.The municipal valuation of the block has increased from R1.25-million to R17.8-million. His property rates will increase from R765 a month to R8,751.
The pain doesn't end there.
Another of Dick's properties, Agin Court in Berea, has increased from R7.6-million in 2013 to R83.4-million.
"I've been investing in this area for over 15 years; I know what the market is. There's not a single block of flats in Yeoville or the surrounding areas worth more than R3-million," Dick said.
City of Johannesburg spokeswoman Selma Lloyd said the increases were inaccurate.
"The specific properties were investigated and it was found [they] were incorrectly valued. The city is investigating all properties in the area and adjacent areas to see if any other properties were also affected."Properties affected by this error will be revalued under the supplementary process and owners will be notified of the new values," said Lloyd.
The city has advised property owners to object if they disagreed with the value reflected on the valuation roll.
Dick, who has been fighting the city's valuations since 2008, said it was not easy.
"The real costs comes with the appeal. That's where you need to argue your case before the appeals board and the average person doesn't have the expertise to do that. So you need to hire a professional evaluator to evaluate your property and an attorney to argue your case before the board."
Northcliff Ratepayers Association chairman Oscar Plange, who owns several properties, said he felt like "the city is taking a long shot at trying to extort money".
Plange is in the process of buying a block of flats in Troyeville. But the recent valuation has thrown negotiations off because the property has now been valued at almost five times more than it was.
"The previous valuation was R7-million and the new one is over R34-million," he said. Rates will increase from about R5,500 a month to more than R25,000.
Last July the City of Johannesburg carried out a general valuation of all 812,000 registered residential properties, using a computer-assisted mass appraisal system.
The new valuations, which are done every four years and determine property rates, will be implemented in July.City of Johannesburg spokesman Stan Maphologela said evaluators determined the value of properties by using the market comparison method. This entailed using sales in the market of similar properties to determine the value. He said legislation allowed the use of computer-assisted mass appraisal techniques.
But Jawitz Properties sales director Francois Venter said municipal valuations often resulted in overvaluing and "are not a true indication" of market value.
Remax CEO Glenn Norton said his company had been inundated with inquiries for valuations.
"The northern suburbs escalated at a level I don't believe is possible," said Norton.
Lloyd said just over 2,000 objections had been received. Residents have until April 6 to object.
THREE OF MICHAEL DICK'S PROPERTIES:
Rosel Court in Bellevue• Was valued at R1.25-million in 2013 and is now valued at R17.89-million [1,431% increase]
Agin Court in Berea• Was valued at R7.6-million in 2013 and is now valued at R83.4-million [1,097% increase]
Isipingo Heights in Bellevue• Was valued at R6.3-million in 2013 and is now valued at R76.1-million [1,208% increase]..