How do software developers afford Cape Town rental

[zaozzie]

What are you actually asking? Someone earning 10k per month won't be able to afford living in century city.

I know there are call center jobs for 4-R5 in century city. Even IT support for 5-8K. I am wondering where they live and how they afford anything for that matter

 

[zaozzie]

A bit out of date, but may be interesting for the historical reference: I was earning R20k/m (gross) around 1999 or so in Cape Town. I was renting in Vredehoek (R1400/m for a tiny bachelor apartment), and bought a stand alone house in the southern suburbs in 2000.

The sad thing is the average IT salary in Cape Town today despite what surveys will tell you is about that in 2015.

 

[cguy]

I have noticed a disturbing downward trend in the software-dev-salary to CoL ratio in SA over the last 15 years.

The sad thing is the average IT salary in Cape Town today despite what surveys will tell you is about that in 2015.

Yup, that was one of the reasons for my post above from the first page. Admittedly, the average for my university peers coming out on to the market was a bit less - around R12-15k at the time. The house I bought was about 1.5x my annual income. Today, that house is worth at least R1.5M, so to maintain the same ratio, a fairly new graduate would have to earn around R1M, which is pretty much unheard of at that experience level. Of course there is more to financial well-being than just property (which has grown disproportionately), so it's not quite as bleak as it looks at first glance.

 

[zaozzie]

Of course there is more to financial well-being than just property (which has grown disproportionately), so it's not quite as bleak as it looks at first glance.

Well at my stage of life including all the wrong decisions in my past the only option I can think of to gain financial well being is by winning the lotto.

 

[aigle2am]

The ANC complain that cape town excludes blacks. IMO Cape Town excludes middle class.

Its true. Depends on how you look at it. I am a developer and I have yet to find a single black manager at any company I have worked at. Dont get me started on the salary issue.

 

[StrontiumDog]

Its true. Depends on how you look at it. I am a developer and I have yet to find a single black manager at any company I have worked at. Dont get me started on the salary issue.

CPT is majority brown people if i am not mistaken. Would you have them be booted out for their darker hue brethren for the sake of quotas?

Besides, JHB is where the money is so if you're young, black and looking to make money you head to Jozi.

 

[StrontiumDog]

I know there are call center jobs for 4-R5 in century city. Even IT support for 5-8K. I am wondering where they live and how they afford anything for that matter

Century City is not the norm. They could rent in many of the cheaper and close by suburbs. Goodwood, Brooklyn, Bothasig, Tygerdal, Kensington, etc... Some of which are not the nicest areas to live in but you could find some cheap rentals there.

If you're earning 5k, then obviously you're going to have to settle for renting a room, not a house obviously.

 

[kripstoe]

I am a developer and I have yet to find a single black manager at any company I have worked at.

Your point being?

 

[OrbitalDawn]

The sad thing is the average IT salary in Cape Town today despite what surveys will tell you is about that in 2015.

What do you base this on?

 

[Edwe]

Still have't heard from any software developer or IT person who lives here.

Looking for something like:

Work Suburb: Century City
Job: IT network engineer.
Salary: R10 000.
Rental Amount in R:
Rental Suburb : ?
Food:
Medical:
Telcoms/Internet:
Other:

Work Suburb: Somerset West
Job: Junior Software Engineer with 2 years experience
Salary: Enough
Rental Amount in R: R9k for a small 2-bedroom flat unfurnished and excluding electricity
Rental Suburb: Tyger Waterfront (50km,30min commute, safe and decent area but not even remotely upmarket)
Food: Irrelevant, same as everywhere else in the country
Medical: Irrelevant, same as everywhere else in the country
Telcoms/Internet: Irrelevant, same as everywhere else in the country
Other: Irrelevant, same as everywhere else in the country

Note: I have lots of friends living in Gauteng. Salaries seem to be slightly (5 to 10%) higher there. The big difference is that rental property is very much cheaper, especially in Pretoria (15-30% cheaper for equivalent properties, depending on the area).

 

[Nod]

I live in Somerset West, and work in Bellville.
Travel time is shorter than my previous Montana -> Centurion, and 10km further.
Paying rent at R10450 for a 250m^2 house, water included (for the moment).

The CPT Northern suburbs are more expensive.

You have to look at what you get for the price. Also compare buying vs renting. Buying is almost cheaper these days.

 

[Ho3n3r]

Was considering looking that side, but reading this thread has turned that into a definite no-no...

 

[Edwe]

I live in Somerset West, and work in Bellville.
Travel time is shorter than my previous Montana -> Centurion, and 10km further.
Paying rent at R10450 for a 250m^2 house, water included (for the moment).

The CPT Northern suburbs are more expensive.

You have to look at what you get for the price. Also compare buying vs renting. Buying is almost cheaper these days.

I grew up in Somerset West and have rented in Somerset West, Stellenbosch and Bellville. Have looked extensively at rental prices in Bellville and Durbanville recently, and the Northern suburbs are definitely cheaper than SW nowadays. I would not be able to get a rental flat of similar quality for under R11k in Somerset West and probably not for under R13k in Stellenbosch.

Having said that, rent has skyrocketed in Somerset West over the past 2 years and I am almost certain that it was cheaper than the Northern suburbs until very recently. The one bedroom flat I had two years ago in Somerset West was R4k a month while my fianceé paid R4500 at the time in Bellville. The Somerset West flat is now going for R7k while her old Bellville flat is still under R5k.

On a different note: Somerset West is a MUCH nicer place to live, and we would not be in Bellville if not for my wife's job. Ideally I would buy in Stellenbosch... maybe one day.

 

[StrontiumDog]

I live in Somerset West, and work in Bellville.
Travel time is shorter than my previous Montana -> Centurion, and 10km further.
Paying rent at R10450 for a 250m^2 house, water included (for the moment).

The CPT Northern suburbs are more expensive.

You have to look at what you get for the price. Also compare buying vs renting. Buying is almost cheaper these days.

Maybe in your neck of the woods but that is not the case anywhere that I can think of. Renting is 40% cheaper than buying in the short term. Obviously paying a bond over time, eventually then the bond repayments will be cheaper than renting.

 

[Edwe]

Maybe in your neck of the woods but that is not the case anywhere that I can think of. Renting is 40% cheaper than buying in the short term. Obviously paying a bond over time, eventually then the bond repayments will be cheaper than renting.

I can confirm that, at least in parts of Cape Town, buying is cheaper than renting if you can get a bond approved with a sane interest rate (that last part is the trick). I know of two people who live in the same street in Strand in similar houses, one who bought with only 10% deposit and the other who is renting. The bond repayments for the one guy are R200 less than the other guy is paying for rent.

This obviously does not take property tax into account, which is quite significant relative to the bond repayments for the specific area: the properties close to the beach have "stabilisation levies" due to the fact that they are built on unstable land. These levies are usually included in the rent and I've seen some as high as R1000 per month.

 

[StrontiumDog]

Yes, I can imagine various areas such as Strand bond repayments might be cheaper than renting there. I would also imagine the demand for buying property there is not the greatest?

 

[Edwe]

Yes, I can imagine various areas such as Strand bond repayments might be cheaper than renting there. I would also imagine the demand for buying property there is not the greatest?

Well, except for beach road, not really. Also, most of the ground is either sandy or clay, leading to cracked or sagging buildings, so obviously not the most sound investment in the world.

 

[StrontiumDog]

Well, except for beach road, not really. Also, most of the ground is either sandy or clay, leading to cracked or sagging buildings, so obviously not the most sound investment in the world.

Unfortunately like most things in life one has to ask, "what's the catch?". Unless one is really ahead of the curve, if there aren't others competing for the same thing that you've found an interest in, then be wary.

 

[zaozzie]

What do you base this on?

Job ads in the papers. Inclusive of all IT staff . IT admin, support, network etc.

 

[Mike Hoxbig]

Job ads in the papers. Inclusive of all IT staff . IT admin, support, network etc.

IT support and admin is unfortunately no longer a skill in demand, and hasn't been for a while...