Monday, May 11, 2009

Christy Wrote......assessment rates

Dear Sir

As highrise dwellers we encounter having to pay a very high assessment fee compared to landed properties.

Poor people are now forced to dwell at highrises because landed properties are so exhobitant and yet our assessments many times more that landed properties.

Why is this so.

cahc replies:

please note condo/apartment owners do not pay higher rates: it is just that for the same rate we pay, we do not get the same services from our local council. For example: we still need to hire our own garbage collectors, people to clean the drains within our compound; we pay for our own lighting within our own compound.

The "higher" rates mentioned would probably be that you are paying commercial rates for your residential property. This is because what you bought is NOT residential but is "Commercial" property: ie Service Apartments.

The plot of land where your building is constructed is most likely to be commercial land. The developer chose to build residential property instead plus perhaps some shop lots. Thus you would be paying for commercial rates for your assessment and utilities.

Thus you were infact ill advised by your legal advisor when you signed the Sales and Purchase Agreement!

***Please note that together with the Voice of the People, APAC had managed to convince the MBPJ to reduce the assessment rates for Highrise by 25%; ie they now pay 6% instead of the previous 8% of the rateable value.

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