Data analytics group Lightstone has released a new report on the suburbs and homes you can afford to live in – based on your salary.
According to Standard Bank’s latest house price index stand-alone properties have continued to outperform townhouses and flats in 2018, with the price of the median free-standing home climbing 7.6% year-on-year in April, versus 6.9% year-on-year in March to R1,049,200.
By contrast, house price growth for flats and townhouses remained relatively flat at 5.8% year-on-year in April, with a median price of R874,700.
Based on Lightstone’s data, this means you should be earning in the region of R35,000 to R39,000 a month to afford the average R1 million free-standing home in South Africa right now, and if you were looking to buy a R874,000 townhouse you should be earning in the region of R26,000 – R30,000.
The table below shows how much you could spend on a home based on your monthly salary – as well as examples of suburbs with these median house prices.
The data is based on current house prices (May 2018), factoring in the recent rate cut, and assumes a 0% deposit (but excludes additional fees incurred during the inception of the loan or transfer of property into the calculation.)
Pricing is based on:
- The assumption that people are not going to spend more than 30% on servicing a home loan.
- The assumption of a 0% deposit for both home financing (but excluding added additional fees incurred during the inception of the loan or transfer of property into the calculation).
- The assumption that the homes are financed over 20 years at the prime lending rate.
|Monthly income required||Suburb||Median Home Value|
|R396 000||Clifton, Western Cape||N/A|
|R230 000||Zimbali, KwaZulu Natal||R7 050 000|
|R117 000||Waterkloof,Gauteng||R3 550 000|
|R100 000||Bryanston, Gauteng||R3 000 000|
|R73 000||Century City, Western Cape||R2 200 000|
|R63 000||Fish Hoek, Western Cape||R1 900 000|
|R51 000||Faerie Glen, Gauteng||R1 500 000|
|R48 000||Glen Marais, Gauteng||R1 450 000|
|R39 000||Parklands, Western Cape||R1 150 000|
|R26 000||Montclair, KwaZulu Natal||R780 000|
|R20 000||Kagiso, Gauteng||R580 000|
|R12 000||Bonteheuwel, Western Cape||R360 000|