Number of properties in Tshwane and Johannesburg municipal debts exceed their value - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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There’s an increase in the number of properties in Tshwane and Johannesburg whose municipal debts exceed their values.

. This means household municipal debt is higher than the actual value of their homes. While the challenge of the non-payment of rates is not new, both metros say the COVID-19 pandemic had exacerbated the problem.

The problem they say arises from the general non-payment of services received or properties not zoned correctly, as well as billing problems. But, the city encourages residents to pay for services as non-payment gives rise to other challenges. The City of Joburg says most of these properties are businesses that have gone under and have no way of keeping up with rates payments. It says there are 960 000 properties that pay rates to the city, 56 owe more than their value. These have been handed over to lawyers to try and recoup the money owed to the city.

Property practitioner Leslie Sithathu says properties are probably the biggest investment that many people would make in their lifetime.

 

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