These are the homes you can afford to buy with your salary in South Africa

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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These are the homes you can afford to buy with your salary in South Africa