{"id":782648,"date":"2024-07-17T19:00:00","date_gmt":"2024-07-17T17:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=782648"},"modified":"2024-07-17T18:49:33","modified_gmt":"2024-07-17T16:49:33","slug":"how-much-you-need-to-earn-to-live-in-one-of-south-africas-most-exclusive-estates","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/782648\/how-much-you-need-to-earn-to-live-in-one-of-south-africas-most-exclusive-estates\/","title":{"rendered":"How much you need to earn to live in the most exclusive estates in South Africa"},"content":{"rendered":"\n

The latest African Wealth Report, notes that millionaires are choosing to live in several exclusive estates in South Africa, and you’ll have to earn at least 780,000 a year to live in one of them. <\/p>\n\n\n\n

The latest African Wealth Report 2024 by Henley & Partners and New World Wealth shows several high-net-worth individual (HNWI) hotspots in South Africa. <\/p>\n\n\n\n

Johannesburg has the most HNWIs on the continent, with 12,300.<\/p>\n\n\n\n

\u201cJohannesburg is home to the Johannesburg Stock Exchange, the largest stock exchange in Africa by some margin and one of the world\u2019s top 20 exchanges,\u201d said Henley & Partners and New World Wealth.<\/p>\n\n\n\n

Many millionaires are based around Sandton or in the \u201cold money\u201d suburb of Westcliff.<\/p>\n\n\n\n

Cape Town comes in second with 7,400 HNWIS. The Cape Winelands, which includes the neighbouring towns of Paarl, Franschhoek, and Stellenbosch, has 3,600 HNWIs<\/p>\n\n\n\n

Durban, Umhlanga, and Ballito follow with 3,500 HNWIs.<\/p>\n\n\n\n

As part of the data, the report highlighted the increasing popularity of lifestyle eco-estates in these areas.<\/p>\n\n\n\n

In fact, two South African estates were named in New World Wealth\u2019s top ten lifestyle estates for 2023.<\/p>\n\n\n\n

Steyn City in Gauteng and Val de Vie in the Western Cape are the two South African estates in New World\u2019s Wealth\u2019s list.<\/p>\n\n\n\n

New World Wealth said estate living is rising globally, particularly among the wealthy.<\/p>\n\n\n\n

It estimates that 50% of centi-millionaires<\/a> \u2013 those with a net worth over $100 million \u2013 will either live or have second homes at lifestyle estates by 2050.<\/p>\n\n\n\n

Within its wealth report for 2024, New World Wealth mentioned other estates that have gained popularity among the wealthy. <\/p>\n\n\n\n

It noted luxury lifestyle estates, such as De Zalze and Domaine des Anges in the Western Cape are attracting HNWI buyers.<\/p>\n\n\n\n

In Durban, these are eco-estates such as Zimbali, Simbithi, Izinga, and Brettenwood.<\/p>\n\n\n\n

Pretoria also competes in the top 10 on the continent, with 2,100 HNWIs. <\/p>\n\n\n\n

Affluent areas include Waterkloff and Waterkloof Ridge, as well as luxury estates, such as Silver Lakes, Mooikloof Equestrian Estate, and Woodhill Estate.<\/p>\n\n\n\n

How much you need to earn <\/strong><\/p>\n\n\n\n

Richard Gray, CEO of Harcourts South Africa, advises that banks prefer lending to home buyers whose monthly bond cost is no more than 30% of their single or joint gross monthly income. <\/p>\n\n\n\n

This 30% income threshold is a common measure of loan affordability for South African banks. <\/p>\n\n\n\n

According to Gray, adhering to this guideline also helps home buyers maintain a balanced financial portfolio and allows for additional monthly payments to reduce the final cost of the home loan.<\/p>\n\n\n\n

Considering this, BusinessTech estimated how much one needs to earn (single or household) to afford the minimum listing prices in these estates. <\/p>\n\n\n\n

To calculate this, we used Absa\u2019s bond calculator<\/a>, assuming a 20-year home loan period at an interest rate of 11.75%.<\/p>\n\n\n\n

The cheapest houses in the estates listed below will cost anywhere from R19,507 to R52,560 per month.<\/p>\n\n\n\n

This requires a minimum salary or joint household income of R65,000 to R175,200 per month. This works out to an income of R780,000 to R2.2 million per annum. <\/strong><\/p>\n\n\n\n

Below, in no particular order, are some of the estates highlighted by the report. It includes the minimum listing price according to Property24’s data and the affordability of the cheapest properties in the estates.<\/p>\n\n\n\n

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Steyn City<\/strong><\/p>\n\n\n\n