How do software developers afford Cape Town rental

[OrbitalDawn]

How does it push up your income?



I believe in living cheap and cutting down on expenses to save the leftover. Or saving a specific amount and living off the rest of your money for the rest of the month.

I don't see how it's possible to save when you are living In a place that murders your salary.

I don't know how all of this tends to push up your income as mentioned in your previous statement.

If you live in an area where income is generally higher that's what generally happens.

 

[droplet]

lovely granny flat (bedroom easily fits three queen-size beds) in milnerton, one block from the lagoon mouth, right on the bus route, water and lights included - R5k/month. suits my wife and me just fine.

 

[krycor]

I prefer to give the opposite advice - live where it's most expensive (rather, where the salaries are highest - usually, but not always the same place) even if you save next to nothing. This tends to push up your income. Then after a few years, you have the option to move someplace cheaper at a much higher salary and with your savings effectively amplified..

I tend to do it this way.. some people see it as a negative thing as you paying more for a place (rental or purchase) than others 'get away' with so to speak. .but really it sets you on a different mindset and that whats key. Kinda why i moved to Gauteng albeit my salary was barely enough to live on initially(thank you employment restraints & cpt) and pay for everything.. you struggle, you learn to deal with things, decides what important in your life, adapt.. and then ask for more from the world.

The last part is key.. if you live in a cheaper place you are more likely to go.. yah but i can manage it and so take a hit because you become comfortable. If you are aware of the cost of living at a lifestyle standard you tend to work/find work to sustain it.. and extra funds come into play you increase the savings aspect such that your artificial disposable income appears the same as those earning less just to keep you hungry. Granted I am from Cpt so have this silly notion of estimating my value and then judging on that rather just going for highest.

Maybe i'm silly.. but i'd rather live close to work, in a secure environment and drive a crappy car, saving for a later period in life.. than switching the two around and living in splendour.. but thats me, old school.

 

[StrontiumDog]

Sound advice from cguy and krycor, IMO

 

[Willie Trombone]

Maybe i'm silly.. but i'd rather live close to work, in a secure environment and drive a crappy car, saving for a later period in life.. than switching the two around and living in splendour.. but thats me, old school.

You'd be in a better position to do just that in a place that costs less standard of living wise. Don't forget that earning a fat whack makes it a lot easier to go backwards than forwards too. I prefer to live somewhere with less stress period.

 

[cguy]

You'd be in a better position to do just that in a place that costs less standard of living wise. Don't forget that earning a fat whack makes it a lot easier to go backwards than forwards too. I prefer to live somewhere with less stress period.

I agree that if the cost of living is higher and your income doesn't grow to match, it's a problem (i.e., don't stay in the poshest suburb of Jhb if you're going to Jhb to increase your income). However, most of the time, you can find a comfortable area in the new city which has a similar standard of living (but higher cost of living), that scales with your income.

My personal situation nearly 15 years ago was that I went to Silicon Valley, and within a few years was earning around $200k/y. Sounds awesome, but over there, it put me firmly in middle-class bracket. My life style was basically, driving a Honda Accord (which I had for 8 years), while living in a fairly basic 2 bed/2 bath rental flat (me, wife, dogs), saving for a deposit for my own flat, paying the bond on my house in SA (which was tiny by comparison to everything else), eating out twice a week, flying economy in off season to SA or England every two years or so to visit family and friends. Really, nothing all that extravagant. Still, I had enough saved to quickly pay off my SA house completely, and by the time I was a few years into my own apartment (mid thirties), my net worth was large enough that if I wanted to, I could sell up (or rent out), move back to Cape Town and retire.

Although comparing SA to one of the most expensive areas in the US makes the point in the extreme case, a similar dynamic exists in SA (and anywhere). Most middle class Jhb'ers can retire in East London wealthy or Cape Town if they wanted to, most middle class East Londoners can't retire in either of these places.

 

[Willie Trombone]

Most middle class Jhb'ers can retire in East London wealthy or Cape Town if they wanted to, most middle class East Londoners can't retire in either of these places.

That is all relative to what you've been putting away, i.e. not spending. So here's the thing - all of my staff moved not only for the slower lifestyle, but a reasonable increase pay wise. Thing is, the company is not local, so although we live and work here, salaries are not relative to the area. If you want to move jobs and stay in EL, there are fewer opportunities than moving to CT or JHB.

 

[cguy]

That is all relative to what you've been putting away, i.e. not spending. So here's the thing - all of my staff moved not only for the slower lifestyle, but a reasonable increase pay wise. Thing is, the company is not local, so although we live and work here, salaries are not relative to the area. If you want to move jobs and stay in EL, there are fewer opportunities than moving to CT or JHB.

Sure, but your point seems to be that general advice doesn't apply to exceptional situations - I think we all get that.

 

[krycor]

You'd be in a better position to do just that in a place that costs less standard of living wise. Don't forget that earning a fat whack makes it a lot easier to go backwards than forwards too. I prefer to live somewhere with less stress period.

Yes & no.. I prefer living in a place close to work, less road rage, less commute & safe to the point where I fly back to Cpt for month and not worry. Not overly expensive/post area just normal? Easy to do in Centurion unlike Jhb/Sandton.. kinda dreading when I have to work that side again.

I dunno, in jhb/pta the cost of living is about the same irrespective of area unless we talking posh places close to a major cbd like Sandton city or Rosebank. Other places seem to have 4 tiers I've come to realize.. Cheap & dodgy usually outskirts of areas frontier like, Ok but security is not great and generally slightly off centre, security good but place ok still off centre but not badly and the very secure & very nice but smaller than 3rd tier and in a great position.

I generally go for 3rd one because I don't want to worry about crime & life and don't mind being slightly out from ideal locations so good value and not too pricey.

Buying a place this year I was considering 4th tier but realizes the cost is similar to posh areas just smaller.. Which I can't justify as I am considering emigration so 3rd tier it will be for now. I just am not sure where I'd go and want to be successful here on own(not working for a company) before.. So kinda just skilling up, gaining experience while considering what's next.

The scary thing is in Cpt places are 1.25 - 2.5x what I pay for similar convenience hence I am busy trying to start my own thing. In the end I will either emigrate or stay in Jhb hopefully making own company. Sucks but such is life if u start off working late in a city where cost of living >> salaries

 

[Gunner182]

I've been thinking about this a lot this past week. How the hell do young single people afford to live in Cape Town?

I earn a decent salary, from which I pay rent, still driving mommy's car and have debt and expenses. The rent is dirt cheap as I share with a buddy in a borderline "OK" neighbourhood. So I was thinking off moving out and getting my own place as 2 guys staying in a loft bachelor apartment can only last for so long. So off to the interwebz I go and the rent is ridiculous! R6K for a bachelor's in the Northern Suburbs and not even the good side of the NS.

Now I'm looking West Coast as most of my friends stay there, and the going rate is R6K-R7K for a decent one/two bedroom in an OK area, but now I'm thinking say I had to buy my own car, that would be atleast R4K for a "get me from A to B" car. That's already R12K from your budget and now you're ****ting bricks as your just making it. Still would have some money left at the end of the month for expenses, installments and savings, but too close for comfort.

EDIT: Found townhouses in Joburg and one bedroom apartments Sandton for R6.5K :wtf:

 

[Hamster]

Supply and demand man. Joburg has higher salaries and complexes going up everywhere - so low/more affordable rent. We have no mountain or wine farms though and we drive everywhere...so pick

 

[Gunner182]

Supply and demand man. Joburg has higher salaries and complexes going up everywhere - so low/more affordable rent. We have no mountain or wine farms though and we drive everywhere...so pick

That ****ing mountain!

Do understand the supply and demand issue, but sheesh!

 

[HideInLight]

You could always move to Steynsrus, our home is approximately 2700 sq feet for R500k.
The house itself is 285 sq feet excluding the afdakke.

Yeah, location matters.
Hey you could create your own little town here...

 

[LetsDance]

Accomodation is a big problem. Unless you are loaded, prepare to squat in a dinky bedroom with a shared bathroom.

 

[ajv]

Accomodation is a big problem. Unless you are loaded, prepare to squat in a dinky bedroom with a shared bathroom.

No kidding, I bought a house in Protea Heights a few years ago and the bond was less than my colleagues were paying to share a flat in town. If you want the nice town experience, be prepared to pay up.

 

[ajv]

You could always move to Steynsrus, our home is approximately 2700 sq feet for R500k.
The house itself is 285 sq feet excluding the afdakke.

Yeah, location matters.
Hey you could create your own little town here...

sq feet ? Is this the US

 

[stevenv]

Shame man, poor people with square feet ...

 

[crackersa]

sq feet ? Is this the US

I understood him. Want me to convert for you?

 

[_kabal_]

285 sq feet is tiny, like 27 sq meters

 

[HideInLight]

Shame man, poor people with square feet ...

I don't know what's worse, me making that mistake or time it took for someone to call me out on it.