How much $$$$$$$$$$ do you need to live well in South Africa.

[zahadoom]

This debate got started when some of our family in Europe asked us how much it costs to live comfortably in SA, I'm guessing they think you can live like a king with a pocket of Euros!

I would like to get some opinions on how much (BEFORE TAX) a family of 4 made up of 2 parents and 2 younger children ages 5 and 10 would need to live well in SA.

By "live well" i am trying to say above middle class so that would include things like private school for the kids, saving up enough for a university education, regular travel, a nice home in a up market area, nice cars replaced every 5 years as well as enough saved up for retirement to be able to maintain that lifestyle.

My guess was about R1 million a year before tax my father places it closer to 2 million keeping with inflation over time in both cases.

 

[AstroTurf]

What do you consider comfortably?

latest merc per adult and 12 room house or 4 room house with a family car or two?

 

[CamiKaze]

R1mil a year? :wtf:

 

[TehStranger]

R1mil a year? :wtf:

Between two working professionals with a bit of experience, R1 mil a year before tax isn't actually that much.

 

[Beachless]

I agree with your father that 1Mil wont be quite enough. I would say from about 1.4Mil you can live in the manner you described.

 

[HDS]

Between two working professionals with a bit of experience, R1 mil a year before tax isn't actually that much.

Yeah, 1 mil p/y is really little. I would say about 1.8 - 2 mil p/y before tax is good, depending on how regular and to what places the travel is.

 

[Messugga]

R1mil a year? :wtf:

To live comfortably? As a household income with two kids who you want to send to a private school while you drive a luxury vehicle (Merc/BMW/Whatever) and live in a nice house in a good area? I don't think R1m pa before deductions is enough, to be honest. That's only around R83k between the two earners before deductions. Personally, we're sitting above that and we don't have kids. We're living a fairly good lifestyle well within our means but sending two kids to a highend private school would ruin our cashflow and we'd have to start saying "no" to impulse expenses. We live in a townhouse as well. Changing to a R5m house in Waterkloof or wherever, would be a pretty damn expensive exercise as well.

R2m pa sounds about right.

 

[Messugga]

I agree with your father that 1Mil wont be quite enough. I would say from about 1.4Mil you can live in the manner you described.

From personal experience, no you can't at that amount, unless you're living outside of your actual means. You'd have to sacrifice on retirement savings. If you had a fully paid house in a good area, then that would be plenty. I mean, the bond repayment on a R4m house is R36k at today's interest rates. That's a rather large chunk of that R1.4m post-deductions.

 

[koeksGHT]

100k pm is living decently for that situation

 

[AstroTurf]

From personal experience, no you can't at that amount, unless you're living outside of your actual means. You'd have to sacrifice on retirement savings. If you had a fully paid house in a good area, then that would be plenty. I mean, the bond repayment on a R4m house is R36k at today's interest rates. That's a rather large chunk of that R1.4m post-deductions.

So why not buy a 1.2mil house instead?

 

[TehStranger]

So why not buy a 1.2mil house instead?

A house in a nice area for 4 people for R1.2 million? Don't think that's going to happen.

 

[CamiKaze]

What does a private school give you that a public school cant?

There are people from really shyte schools making it in this world.

Just a question.

 

[AstroTurf]

A house in a nice area for 4 people for R1.2 million? Don't think that's going to happen.

lol, house next to my fil was selling for 1.2million.
Nice area, 4 rooms, double garage, lounge dining room etcetcetc.

Unless you want to live in sandton or brooklyn...

 

[Messugga]

So why not buy a 1.2mil house instead?

Because I can answer OPs question

By "live well" i am trying to say above middle class so that would include things like private school for the kids, saving up enough for a university education, regular travel, a nice home in a up market area

If you can find a nice home in a nice area for R1.2m, tell me now because I'll buy it. In Pretoria that buys you nothing more than an empty plot of land in the better areas. And not a great plot either - those go for R2+m. R4m can buy you a rather nice existing house though.

 

[TehStranger]

lol, house next to my fil was selling for 1.2million.
Nice area, 4 rooms, double garage, lounge dining room etcetcetc.

Unless you want to live in sandton or brooklyn...

Which area does your FIL stay in if you don't mind me asking?

 

[Messugga]

What does a private school give you that a public school cant?

There are people from really shyte schools making it in this world.

Just a question.

There are also people with zero education making it in this world. Doesn't mean you shouldn't be trying to give your kids each and every advantage you possibly can.

 

[AstroTurf]

Because I can answer OPs question



If you can find a nice home in a nice area for R1.2m, tell me now because I'll buy it. In Pretoria that buys you nothing more than an empty plot of land in the better areas. And not a great plot either - those go for R2+m. R4m can buy you a rather nice existing house though.

yea ok, upmarket area

Keep it, thats where the thieves go to shop

 

[Agent47]

I am currently in Ireland, looking to move back to SA in the next year or so. Most of my analyses have been around taking my lifestyle here and comparing it to the cost of living in SA and from there calculating an expected annual CTC.

I got a min of R850k CTC for a single person - some general points I included:
- 3 bed Townhouse in Fourways (i am from there)
- My normal hot hatch (replacing this every 3 years)
- Travel as I feel like it
- Not having to say no to myself when I need/want something (huge gadget freak).

So for a couple with kids and a decent lifestyle I would say min R2mil.

 

[Beachless]

From personal experience, no you can't at that amount, unless you're living outside of your actual means. You'd have to sacrifice on retirement savings. If you had a fully paid house in a good area, then that would be plenty. I mean, the bond repayment on a R4m house is R36k at today's interest rates. That's a rather large chunk of that R1.4m post-deductions.

If we are talking about someone who owned nothing before maybe but most people at the age he describes would not take the loan all out but have a decent deposit. It also depends where you live as rates and levies and school/cresh fees vary quite a bit. And I did say start so to me that would be the absolute minimum.

 

[zahadoom]

If we are talking about someone who owned nothing before maybe but most people at the age he describes would not take the loan all out but have a decent deposit. It also depends where you live as rates and levies and school/cresh fees vary quite a bit. And I did say start so to me that would be the absolute minimum.

Agree i cant say i see any a family earning R2mil a year buying a home without putting down a substantial deposit.