How to work out your rate

Capetonian property owners can start crunching the numbers ahead of the July rates increases.

The city tabled its budget last week wherein it announced an average 7.7 percent increase in property rates.

Calculating property rates is not that complicated, provided the correct formula is being used.

It is important to note that there is a R200 000 value deduction, meaning the amount can be subtracted from the value of the property.

So, for example, if the house is valued at R300 000, the starting amount for calculations will be R100 000.

That figure is then multiplied by 0.00531, which will then produce an annual figure of R531, which totals R44.25 per month.

But, the more expensive the property, the higher the end figure will be.

If the property is valued at R600 000, the same formula applies, but the monthly rates will be a much higher figure of R177.

Eyewitness News

Article by: Chantall Presence - www.iafrica.com