{"id":654195,"date":"2023-01-08T15:00:16","date_gmt":"2023-01-08T13:00:16","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=654195"},"modified":"2023-01-06T16:18:51","modified_gmt":"2023-01-06T14:18:51","slug":"the-houses-you-can-afford-on-the-average-salary-in-south-africa-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/654195\/the-houses-you-can-afford-on-the-average-salary-in-south-africa-2\/","title":{"rendered":"The houses you can afford on the average salary in South Africa right now"},"content":{"rendered":"

This year, prospective homebuyers in South Africa will need to be cautious of what they can afford in light of rising interest rates.<\/p>\n

A bond is usually needed to finance a home in South Africa, with several things influencing how much of a bond a potential homeowner will be able to secure. Such factors include a person’s take-home pay and the size of their deposit.<\/p>\n

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According to the latest data from Stats SA’s quarterly employment survey (QES) for Q3 2022, the average salary in South Africa has increased slightly from the previous quarter to R24,813<\/strong> <\/a>per month, representing a 0.6% increase from R24,668.<\/p>\n

This is also a 3.8% increase from the same period in 2021, when the average salary was R23,908 per month.<\/p>\n

Currently, the average monthly take-home pay for those with formal employment is approximately R15,489<\/strong><\/a> in nominal terms.<\/p>\n

If you use the rule of thumb that your mortgage repayment should be approximately a third of your income, then with an average salary of R24,813 per month and a net income of R21,237, you could afford to pay around R8,271 per month<\/strong> towards your mortgage. This amount will vary based on your specific financial situation and the terms of your mortgage.<\/p>\n

On 25 November, the South African Reserve Bank (SARB) pushed the interest rate up by another 75 basis points, taking the current prime lending rate to 10.50%.<\/p>\n

By using both\u00a0Old Mutual\u2019s Personal Income Tax Calculator for 2022\/23<\/a><\/strong> and BetterBond\u2019s<\/a>\u00a0<\/strong>affordability calculator, you can calculate how much the average South African working in the formal sector can afford.<\/p>\n

Note: Calculations are based on a prime lending rate of 10.50% and assume that the bond repayment period is 20 year. Interest rates will vary, and so with the price of housing.<\/em><\/p>\n

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Gross Income<\/th>\nNet income<\/th>\nMonthly repayment<\/th>\nLoan amount<\/th>\n<\/tr>\n
R24 813<\/td>\nR21 237<\/td>\nR7 444<\/td>\nR 745 598<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

If two people were living together and both were earning the same average salary, the household could afford a home of roughly R1,491,196.<\/p>\n<\/div>\n

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Gauteng<\/strong><\/p>\n

2 Bedroom Apartment for Sale in Johannesburg – R755,000<\/a><\/strong><\/p>\n

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2 Bedroom House for Sale in Johannesburg – R1,495,000<\/a><\/strong><\/p>\n

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2 Bedroom Apartment for Sale in Pretoria – R760,000<\/a><\/strong><\/p>\n

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2 Bedroom House for Sale in Pretoria – R1,410,000<\/a><\/strong><\/p>\n

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Western Cape<\/strong><\/p>\n

0.5 Bedroom Apartment for Sale in Cape Town – R749,000<\/a><\/strong><\/p>\n

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2 Bedroom House for Sale in Cape Town – R1,450,000<\/a><\/strong><\/p>\n

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2 Bedroom Apartment for Sale in Stellenbosch – R750,000<\/a><\/strong><\/p>\n

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3 Bedroom House for Sale in Stellenbosch – R1,500,000<\/a><\/strong><\/p>\n

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KwaZulu-Natal<\/strong><\/p>\n

2 Bedroom Apartment for Sale in Durban – R750,000<\/a><\/strong><\/p>\n

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2 Bedroom House for Sale in Durban – R1,495,000<\/a><\/strong><\/p>\n

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2 Bedroom Apartment for Sale in Sea Park- R750,000<\/a><\/strong><\/p>\n

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3 Bedroom House for Sale in KwaZulu-Natal – R1,500,000<\/a><\/strong><\/p>\n

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Eastern Cape<\/strong><\/p>\n

2 Bedroom Apartment for Sale in Gqeberha – R745,000<\/a><\/strong><\/p>\n

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2 Bedroom House for Sale in Lorraine, Gqeberha – R1,450,000<\/a><\/strong><\/p>\n

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2 Bedroom Apartment for Sale in East London – R750,000<\/a><\/strong><\/p>\n

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Read: Here\u2019s who is actually buying homes in South Africa<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

With rates poised to increase again this year, here is how much the average person can spend on a house and what they could look like.<\/p>\n","protected":false},"author":10,"featured_media":654233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[26],"class_list":["post-654195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/654195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=654195"}],"version-history":[{"count":20,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/654195\/revisions"}],"predecessor-version":[{"id":654511,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/654195\/revisions\/654511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/654233"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=654195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=654195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=654195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}