How do software developers afford Cape Town rental

[Pakka]

How does Durbanville compare with regards to property, living costs & salaries?

 

[Edwe]

How does Durbanville compare with regards to property, living costs & salaries?

I don't know about salaries in the area, but for me, working in Somerset West and living in Bellville/Durbanville, property is crazy expensive. I am a mid-level software engineer with an MScEng, earning a market-related salary, and I spend more than half my nett salary on rental for a nice, small 2 bedroom flat in an okay part of Tyger Valley in a slightly crummy block of flats.

Projecting everything using current inflation rates, it will take me roughly 70 years to make full repayment on the "average" (based on a quick glance at property24) house in Durbanville.

EDIT: FWIW, my wife has worked at two companies in the area, and based on this anecdotal evidence, salaries are about 5-10% higher than in Somerset West, while property is significantly (25-30%) more expensive.

 

[JackWhite]

For me the cost of living is the issue and not so much the property in SA as a whole. If you take the UK for example, from what i have noticed, i could be wrong, the houses are very expensive and take up a bigger chunk of your income than the balance of cost of living expenses whereas in SA it is the other way around. I would rather be spending the larger amount on an appreciating asset than on the other cost of living items.

 

[me_]

For me the cost of living is the issue and not so much the property in SA as a whole. If you take the UK for example, from what i have noticed, i could be wrong, the houses are very expensive and take up a bigger chunk of your income than the balance of cost of living expenses whereas in SA it is the other way around. I would rather be spending the larger amount on an appreciating asset than on the other cost of living items.

One thing that drives the UK housing market is how low the prime interest rate is. At 0.5%, it's a lot a lower than our 9.25% and this has a massive impact over the years. If you could afford R10,000 per month for a bond, you would only be able to buy a property worth just under R1.1million while making the same repayment in the UK, the same monthly installment would get you a property worth just over R2.2million. If you factor in that people there earn a lot more than people here, it is easy to see why property prices are so high because they can afford the monthly repayments.

 

[zippy]

Mortgages in the UK are very cheap. But its not 0.5%

You will see quotes of 2.5%, but generally most people wil qualify for 3.99% mortgage rates. The lower rates need larger deposits. At least 20%

However, its not easy to get a mortgage in the UK. The banks are very picky about who they will lend money to.

It also depends where in the UK you buy. Price vary wildly. South East and South West are most expensive. North East and North West is very cheap. London is just plain unaffordable, except for drug dealers and Russian football club owners

 

[Johnatan56]

That's realy worse case but my point I'm trying to highlight that a the biggest chunk of software dev jobs are in the city center where as in Gauteng it's pretty spread out. Property in the city center and southern suburbs are very expensive. If you already have a place there then lucky you but spare a thought for those who don't.

Traffic to the city from residential areas like Blouberg, Parklands,Northern suburbs,Muizenberg,Houtbaai & Somerset can be hectic. Central Suburbs in between can pretty dodge and not really a place where you can have a good quality life.

I know this is an older comment now, but just wanted to add some info. I live in Table view, it takes me about 30min with the MyCiti to get anywhere in the city center. Costs me less than R10 as well. I usually get on the bus at 6:30am, get to where I am going (after catching another feeder bus for the city center) at about 7:10am due to queues. The same way back can often be about 25min, due to usually going back home at ~15:00.

Traffic on the Blouberg side to town has decreased quite a bit in the recent years.

 

[Cam]

How does Durbanville compare with regards to property, living costs & salaries?

Currently renting in Durbanville, R6500 for a smallish 2 bedroom townhouse. I work in the CBD though so traffic can be a pain in the ass.

 

[SauRoNZA]

Currently renting in Durbanville, R6500 for a smallish 2 bedroom townhouse. I work in the CBD though so traffic can be a pain in the ass.

WTF?

My bond is a thousand less for a 3 bedroom 2 bathroom stand alone house with a garage just down the road in Vredekloof. .

 

[Cam]

WTF?

My bond is a thousand less for a 3 bedroom 2 bathroom stand alone house with a garage just down the road in Vredekloof. .

Yeah, I couldn't buy at the time i needed accommodation. Definitely buying when my lease expires here, maybe in Vredekloof

 

[SauRoNZA]

Yeah, I couldn't buy at the time i needed accommodation. Definitely buying when my lease expires here, maybe in Vredekloof

It's crazy to me.

My neighbour also pays R6500 ish and his house is almost identical to mine.

He has the means to buy and has done so now and is moving out shortly, but has lived here for about three years or so.

 

[Cam]

It's crazy to me.

My neighbour also pays R6500 ish and his house is almost identical to mine.

He has the means to buy and has done so now and is moving out shortly, but has lived here for about three years or so.

I hear ya. For some reason property is extremely expensive to rent and buy in Durbanville compared to Vredekloof/Brackenfell. Specially in Protea Hoogte, you can find awesome houses to buy in that area for next to nothing. It's a bitch to get to town from there though. I suppose I'm paying a bit more because I'm relatively close to the N1.

 

[kripstoe]

WTF?

My bond is a thousand less for a 3 bedroom 2 bathroom stand alone house with a garage just down the road in Vredekloof. .

Hi neighbor.

I think you'd find that townhouse to be close to a popular school. I bought a place in Durbanville (Sonstraal Heights) recently. Durbanville is ridiculously popular and properties sell almost immediately. I spent months trying to find something freehold in my area that I could afford. Prices are silly.

 

[SauRoNZA]

I hear ya. For some reason property is extremely expensive to rent and buy in Durbanville compared to Vredekloof/Brackenfell. Specially in Protea Hoogte, you can find awesome houses to buy in that area for next to nothing. It's a bitch to get to town from there though. I suppose I'm paying a bit more because I'm relatively close to the N1.

Yeah Protea Heights is a bitch to get to town from, which is why I didn't buy there.

This side is much of a muchness unless you are very low down Durbanville towards Eversdal side.

Then again I ride a bike every day because I live out this way.

 

[SauRoNZA]

Hi neighbor.

I think you'd find that townhouse to be close to a popular school. I bought a place in Durbanville (Sonstraal Heights) recently. Durbanville is ridiculously popular and properties sell almost immediately. I spent months trying to find something freehold in my area that I could afford. Prices are silly.

Yeah I realise school obviously play a role. Just like when they built Cape Gate hospital here all property prices jumped.

I'm looking on the Avondale area now to purchase a new place because it's more central, can have a great view as a bonus and close to all the schools of your choosing if you are happy buying an older place and doing some renovation.

Obviously I'm also forgetting that I bought this place five years ago and have beaten the interest so paying much less than I should.

Probably more like 10k a month if I have to buy it again now.

 

[kripstoe]

I'm looking on the Avondale area now to purchase a new place because it's more central, can have a great view as a bonus and close to all the schools of your choosing if you are happy buying an older place and doing some renovation.

Tygerberg High School area?

What are the prices like? Never considered that area, but I drive through it from time to time.

 

[Brawler]

Eish. 6k for a two bedroom townhouse sounds wonderful.

I'm paying close to 8k for a 1 bedroom but it is huge and quite upmarket. On the plus side I wake up at 08h20 and in the office at 09h00. Travel expenses are very low so can get by on one tank of fuel per month or less if I cycle or run to work. Would much rather pay more and get more out of my day than the great trek to Blouberg or Durbanville.

I'm going to purchase a place by the end of this year so looking around now. Rondebosch is CRAZY to buy, makes renting seem cheap.

 

[kripstoe]

Probably posted somewhere on myBB already.

http://www.fin24.com/Money/Property/Cape-Town-properties-beat-Johannesburg-again-20150317

 

[me_]

Mortgages in the UK are very cheap. But its not 0.5%

You will see quotes of 2.5%, but generally most people wil qualify for 3.99% mortgage rates. The lower rates need larger deposits. At least 20%

Woops, sorry. I did a quick search for UK prime lending rate and got that number.

 

[SauRoNZA]

Tygerberg High School area?

What are the prices like? Never considered that area, but I drive through it from time to time.

Yeah that's the one.

De Tijger is very expensive as it's the newer more modern houses.

Avondale is on the same hill and you are looking anywhere from 1,5 - 2 million there but then you are talking about a 5 bedroom 3 bathroom double garage place with big rooms on a big erf and probably a pool as well.

 

[Edwe]

Eish. 6k for a two bedroom townhouse sounds wonderful.

I was thinking the same. How on earth do you people get those kinds of prices? We are renting a tiny 2 bedroom apartment on the second floor for R8500 in Tyger Valley and it was literally the cheapest place I could find after 2 months of searching. Looked all over Brackenfell, Durbanville and Bellville.