Research by property analytics group Lightstone shows the value of the house you can afford on your monthly salary in neighbourhoods across South Africa.
The group’s research looked at properties for sale in South Africa and calculated what a home buyer would have to earn per month to pay off a 20-year mortgage, assuming they use 30% of their monthly gross to fund it.
According to Lightstone, the median property value was used “as it eliminates extreme values which can influence the price within a suburb, and it gives a good representation of the typical house value in the suburb as a whole”.
Looking at property in South Africa as a whole, the median value for a property in the Western Cape is R680,000, the highest out of all of the provinces, and one which would require a monthly salary of R22,600.
The Eastern Cape is the province with the lowest median value of a property (at R380,000) requiring a salary of R12,600.
To afford a property in Gauteng where the median value is R620,000, you’d typically need a salary of R20,600, Lightstone said.
Median house price vs median salary
“Comparing median values of properties on a provincial level and the salaries required, there isn’t a massive difference in numbers. What about when you take it one step further and analyse suburbs and the salary needed to purchase within them?”
“This is where the numbers change – substantially,” the group said.
To afford a luxury beach property with a median value range of R11,700,000 in Llandudno, you’d need a monthly salary of R389,400.
A property of R7,200,000 within the coastal estate of Zimbali would require a salary of at least R239,600, and a property of around R8,350,000 in De Zalze Golf Estate would require a salary of R277,900.
Article from businesstech