Can your buyer afford that beach house?
What 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.