17 May, 2017
Regulations in terms of Property Valuation Act
REGULATIONS: PROPERTY VALUATION ACT (ACT 17 OF 2014)
find attached for your information a copy of the
essence the regulations set out the methodology that must be
followed by valuers when valuing property for the purposes
of land reform as prescribed by the newly established
"Valuer General". With regards specifically to the
valuation of property upon which timber is grown, the
following should be noted:
- The valuation of the
land is determined by adding
the current use value and the market value and then dividing
the sum by two.
- The current use value is
determined by the net present value as at the date of
valuation of the cash inflows generated. If a loss is made,
the property thus has no use value.
- The timber stock value is then
added to the market value only (and not to the current value
as well). The value of the timber is thus only 50% of what
it is worth.
of the above will be to dramatically reduce the "valuation"
(in relation to what the valuation would have been if based
on market value) of timber estates, and hence the price paid
by Government for these properties.
FSA will be making a submission by the deadline of 20th
, members are
encouraged to make their own submissions as in this specific
instance, we believe that the more submissions the Valuer
General receives the better. This is because at recently
held workshops, the Valuer General has dismissed organised
Download PDF document: Draft regulation Property Valuation Act