Can your buyer afford that beach house?

Can your buyer afford that beach house?

Property-Professional-magazine-residential-property-index-2016-pam-goldingWhat do you need to be earning to purchase property in South Africa? Lightstone Property has taken into account gross salary per month, the median value of properties, a 20-year mortgage at a fixed prime rate (10.5%) and 100% financing with no deposit. Transfer and other related costs are excluded, and no more than 30% of a buyer’s gross monthly salary would be allocated for mortgage repayments each month (this is based on mortgage lender standard assumptions).

The median value for a property in the Western Cape is R680,000, the highest out of all of the provinces, and would require a monthly salary of R22,600. The Eastern Cape has the lowest median value (at R380,000), requiring a salary of R12,600. To buy property in Gauteng, where the median value is R620,000, you’d typically need to earn R20,600 per month.

To afford a luxury beach house with a median value range of R11.7m in Llandudno, you’d need a monthly salary of R389,400. A property of R7.2m within the coastal estate of Zimbali would require a salary of at least R239,600 and a property of about R8.35m in De Zalze Golf Estate would require a salary of R277,900.


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