{"id":691635,"date":"2023-05-28T15:00:14","date_gmt":"2023-05-28T13:00:14","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=691635"},"modified":"2023-05-26T16:00:52","modified_gmt":"2023-05-26T14:00:52","slug":"what-property-south-africans-can-buy-with-a-monthly-salary-of-r60000","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/691635\/what-property-south-africans-can-buy-with-a-monthly-salary-of-r60000\/","title":{"rendered":"What property South Africans can get with a salary of R60,000 a month"},"content":{"rendered":"

Despite major interest rate hikes and a difficult economic environment, property demand for high-earners in South Africa remains relatively stable.<\/p>\n

FNB’s latest property barometer for April 2023 said that market activity continues to decline due to high borrowing costs and weakening consumer fundamentals.<\/p>\n

Overall, the year-to-date internal mortgage applications, an indicator of market demand, dropped by 13.1% compared to the same period last year.<\/p>\n

This differs significantly based on income level, with certain groups more “interest-rate sensitive.”<\/p>\n

In the “lower” income level, for those who earn less than R450,000 per annum, property demand dropped by 23.4% year-to-date.<\/p>\n

A year-to-date 12.06% decline was recorded for the “middle” income band, where yearly earnings total between R450,000 and R750,000.<\/p>\n

However, the demand for those earning R750,000 or more per annum was only 1% less than the previous year.<\/p>\n

FNB said that reflects the disproportionate impact of higher borrowing costs across income groups.<\/p>\n

For lower to middle-income earners, interest rates have a large and fast impact on mortgage demand, unlike the smaller and delayed response across upper-income segments.<\/p>\n

That being said, other areas, particularly depressed sentiment, do still present downside risks to activity in the upper segments.<\/p>\n

Overall, FNB said that the deleveraging trend on asset-backed credit is being driven by lower- and middle-income earners, highlighting the deterioration in affordability across the income spectrum.<\/p>\n

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However, with relatively stable demand levels amongst higher earners, BusinessTech decided to look at the cheapest properties available in the income bracket.<\/p>\n

According to the oobahomeloan bond calculator<\/a>, a 30-year mortgage with an 11.75% interest rate for a person who earns R750,000 per year – R62,500 per month –\u00a0 is roughly R1,850,000 – depending on their monthly expenses.<\/p>\n

Below are some properties across South Africa that are worth R1,850,000.<\/p>\n

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