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

[TehStranger]

I am currently in Ireland, looking to move back to SA in the next year or so.

 

[Messugga]

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.

Again, I'm in that situation personally (R1.4+m pa) and I know we can't afford the R4m house without stretching ourselves too thin for my liking, even with a fairly hefty deposit. And we don't have kids either - those buggers are expensive.

 

[FrankCastle]

I know a few millionaires who drive Toyota, VW and live comfortably spending R30 000 a month when they can afford much more.

All that extra cash goes back into their investments effectively making them richer.

There's no comfort in spending what you don't need to impress people you don't know.

You can't be secure when half of the luxuries you have belongs to the bank.

 

[Messugga]

I know a few millionaires who drive Toyota, VW and live comfortably spending R30 000 a month when they can afford much more.

All that extra cash goes back into their investments effectively making them richer.

There's no comfort in spending what you don't need to impress people you don't know.

You can't be secure when half of the luxuries you have belongs to the bank.

Yeah this is exactly my feeling. A lot of people in so-called wealthy areas pay their bonds off over 20 years or whatever the maximum period is their bank will give them. They flush away cash and don't invest enough for their retirement. That's why I said you need to earn at least R2m pa to live that way while still investing for your old day and even then I'd feel uncomfortable.

 

[Beachless]

Again, I'm in that situation personally (R1.4+m pa) and I know we can't afford the R4m house without stretching ourselves too thin for my liking, even with a fairly hefty deposit. And we don't have kids either - those buggers are expensive.

I know a few people who live in 3-4Mil houses and only one spouse works. One in particular has shown me his expenditure although they only have one child and they spend well below R80000. Granted they only have one new discovery and dont go overseas much.

But this argument is a bit pointless as we are basing it on personal opinions of wants and needs and not facts.

 

[Gunner182]

I know a few millionaires who drive Toyota, VW and live comfortably spending R30 000 a month when they can afford much more.

All that extra cash goes back into their investments effectively making them richer.

There's no comfort in spending what you don't need to impress people you don't know.

You can't be secure when half of the luxuries you have belongs to the bank.

True. I also know a few well of people here at work that takes the bus to work, some of them even walk. The others drive as you said Toyota's etc.

Then you have the people in my department who don't even earn that much that wants to "Keep up with the Kardashians":erm:

 

[Messugga]

I know a few people who live in 3-4Mil houses and only one spouse works. One in particular has shown me his expenditure although they only have one child and they spend well below R80000. Granted they only have one new discovery and dont go overseas much.

But this argument is a bit pointless as we are basing it on personal opinions of wants and needs and not facts.

Agreed. It's super subjective.

 

[zahadoom]

Hell i consider the average Toyota to be a "nice car".

 

[Messugga]

Hell i consider the average Toyota to be a "nice car".

It's not. I drive a 86 and it's pretty sparse on luxuries. I wouldn't call it particularly nice. Just bought the wife a GTI and that thing is gloriously well equipped and comfortable. The 86 is more fun to drive though.

 

[Ancalagon]

Well lets calculate how much you would need.

Mortgage expense for a R3 million townhouse or house - roughly R30k per month.
Fuel costs for 2 adults, assuming 2 relatively fuel efficient cars - R2k per month.
Car repayment costs, assuming 2 mid level cars bought over 5 years - R5k per month each, R10k total
Insurance costs for 2 cars and household contents - R3k
Food, entertainment and communication - R15k. This includes cellphones, ADSL and DSTV
Schooling expenses assuming private schooling - R10k per month per child, or R20k per month.

Total: R70k per month net income required. You would need roughly R100k combined gross income to achieve this.

 

[Agent47]

View attachment 129593

Haha with which part are you having the issue?

 

[TehStranger]

Haha with which part are you having the issue?

You escaped the ****hole, and now want to come back? There are very few reasons I'd want to return to South Africa from Ireland (or nearly any European country for that matter).

 

[CrazYmonkeY159]

Well lets calculate how much you would need.

Mortgage expense for a R3 million townhouse or house - roughly R30k per month.
Fuel costs for 2 adults, assuming 2 relatively fuel efficient cars - R2k per month.
Car repayment costs, assuming 2 mid level cars bought over 5 years - R5k per month each, R10k total
Insurance costs for 2 cars and household contents - R3k
Food, entertainment and communication - R15k. This includes cellphones, ADSL and DSTV
Schooling expenses assuming private schooling - R10k per month per child, or R20k per month.

Total: R70k per month net income required. You would need roughly R100k combined gross income to achieve this.

Crucially missing medical aid, which I am not sure of the costs of an average family

 

[Messugga]

Crucially missing medical aid, which I am not sure of the costs of an average family

R1500 or so per person. So that's another R6k. He's also missing those all-important international trips once a year.

 

[AlphaBravo]

R1.8m minimum...

 

[Sensorei]

1.2 million a year before tax is enough in Cape Town. Most couples who earn that are not on their first house and can put a sizeable deposit down. Ancalagon's estimate is pretty good.

 

[chrisc]

And when you retire, inflation actually increases. By that stage, you don't have any kids to put through university and will have paid for your house, etc.

In the 1970's and up to about R 1985, a R3m nest egg was considered adequate to retire on, with interest rates above 10%, annuities were paying R 14k per million so a R3m portfolio would bring in R 42k a month, more than adequate

Since 2008 that all changed, an annuity (if you believe in these) maybe gets you R 7k per R1m, so you need much more money put away. Of my circle of retired friends, say about 30, only 10 are comfortably off, can do what they like and don't have to watch the pennies. The other 20, in varying degrees, have to be very careful, accept handouts from their kids, don't travel much and don't go out to meals. And these were mostly guys with well-paid jobs, engineers, doctors, etc. The winners are those receiving an oveseas pension from a company (not the British Govt) or a country like Switzerland or Germany.

If you contributed an average of R 550 a month to a pension fund in Switzerland (and were a Swiss national) then you can expect a monthly pension of around R 83 000. Given that the value of the SFr increases year by year via a vis the Rand, this takes care of inflationary trends in SA

I don't want to get into a discussion of retirement income, since this is not the heading of this thread, but you have to be aware of the future. You can guarantee that inflation will never go away, at least in SA

 

[ToxicBunny]

Seriously?

at R1m per year before deductions I wouldn't be living well, I'd be living like a bloody king.

 

[TehStranger]

R1500 or so per person. So that's another R6k. He's also missing those all-important international trips once a year.

Double that. Classic Comprehensive is over R3,000pm per person now. Unless you're on dat dere poverty spec medical aid, nomsayin'?

 

[Messugga]

Double that. Classic Comprehensive is over R3,000pm per person now. Unless you're on dat dere poverty spec medical aid, nomsayin'?

Gems all the way