South Africa’s affluent are struggling to pay off their home and car loans

air

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They should downgrade to a kwid then
but what would the neighbours say. LOL, in our road, we easily have the kakkest car by far and only one, not multiple. Boggles my mind when peeps who drive 500K cars live in homes of ZAR1.5M - yes, structure of their salary has influence, but still...
 

krycor

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How can one be "affluent" and struggle to pay your debt?

I think they mean affluent lifestyle.. ie rich(access to cash flow) but not wealthy(cash in the bank/investments).
 

Lupus

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but what would the neighbours say. LOL, in our road, we easily have the kakkest car by far and only one, not multiple. Boggles my mind when peeps who drive 500K cars live in homes of ZAR1.5M - yes, structure of their salary has influence, but still...
500k cars? You know those are pretty standard now sadly :-(, I mean if an entry level Polo Vivo is 200k.
 

Aquila ka Hecate

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In my suburb, it's pretty common to see folks driving around in cars which cost much more than my house did when I bought it.
People here are clearly insane.
 

Lupus

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In my suburb, it's pretty common to see folks driving around in cars which cost much more than my house did when I bought it.
People here are clearly insane.
Well it depends on when you bought your house? My dad bought his in 1988 so he is driving car that costs 6 times more then when he bought his house :).
A friend bought a massive plot of land for R250k back in 2001, so most cars are that price now.
 

Aquila ka Hecate

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Well it depends on when you bought your house? My dad bought his in 1988 so he is driving car that costs 6 times more then when he bought his house :).
A friend bought a massive plot of land for R250k back in 2001, so most cars are that price now.
Point :laugh:
Let me amend that - many are driving cars which are priced at more than my house is worth now, and it's fairly typical of the area.
 

supersunbird

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Agreed. Most affluent people were caught off-guard with Covid. Even if they wanted to downscale, sell off high valued properties or vehicles, etc., after the lockdowns, it became much more difficult to do so. Businesses are taking punches with Covid and the lockdowns. Many are no longer doing as well as they did before. People finding themselves in this position are great risks.

I know a couple of brokers who used to earn R80k-R130k a month in commission only. Some of them dropped down to R50k-R80k in income now. This R30k to R50k loss of income is a big drop and may put you in big financial trouble if you do not manage your finances right.

They should have paid more attention to that 7 good years, 7 lean years story.
 

Bobbin

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If you can afford an average opening of a bond at R1.2m and vehicle finance at R450k in South Africa, then it pretty much seems to be affluent in my books..... Your monthly repayments of these two things alone may easily exceed R15-R20k.

That's barely middle class. Strange to call that affluent IMO.

A R450k car is a bit excessive but 1.2m bond is like a very small 2 bedroom house in a standard area, definitely not even with a double garage. (I recently went through the process). Hell even the small 2 bed apartment signs you see driving out to Krugersdorp and the like advertise at R1.3m IIRC and they're nothing special.

I guess the economy is going so much down the drain it's all relative. Affluence is like, just keeping your head above water these days lol
 
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Lupus

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Depends where in Gauteng. R1.2m easily can get you a 4 bedroom, swimming pool, 2 Garage, outside granny flat in certain areas in your better neighbourhoods.
Really where? Cause that won't get you a 4 bedroom, swimming pool, 2 garage and a granny flat, unless it was a major fixer upper.
My place in 2018 cost 1.2 million and that was after getting the guy to drop the price cause it needed fixing.
 
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