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 |
Read: How much it costs to move into a retirement home in South Africa
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