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What house you can afford to buy with your monthly salary in SA

What house you can afford to buy with your monthly salary in SA

<p><strong>Research by property analytics group Lightstone shows the value of the house you can afford on your monthly salary in neighbourhoods across South Africa.</strong></p> <p>The group&rsquo;s research looked at <a title="property for sale in South Africa" href="http://just.property/residential-property/for-sale/">properties for sale in South Africa</a>&nbsp;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.</p> <p>According to Lightstone, the median property value was used &ldquo;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&rdquo;.</p> <p>Looking at <a title="Real Estate in South Africa" href="http://just.property">property in South Africa</a>&nbsp;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.</p> <p>The Eastern Cape is the province with the lowest median value of a property (at R380,000) requiring a salary of R12,600.</p> <p>To afford a property in Gauteng where the median value is R620,000, you&rsquo;d typically need a salary of R20,600, Lightstone said.</p> <p><strong>Median house price vs median salary</strong></p> <p>&ldquo;Comparing median values of properties on a provincial level and the salaries required, there isn&rsquo;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?&rdquo;</p> <p>&ldquo;This is where the numbers change &ndash; substantially,&rdquo; the group said.</p> <p>To afford a <a title="Holiday accommodation" href="http://just.property/holiday-property">luxury beach property</a>&nbsp;with a median value range of R11,700,000 in Llandudno, you&rsquo;d need a monthly salary of R389,400.</p> <p>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.</p> <p>Article from&nbsp;<a href="http://businesstech.co.za/news/general/125581/what-house-you-can-afford-to-buy-with-your-monthly-salary-in-sa/">businesstech</a></p>