Cost of Living in South Africa
Sunny South Africa - the land of wine, sun, song, and ever increasing costs. A stronger South African Rand means that expats may find the cost of living in SA higher than what they may have anticipated, but nonetheless, life in the rainbow nation will be far cheaper than in New York City, London, Hong Kong and other western or Asian superpowers.
Still though, those receiving payment in foreign currency should be aware that the US dollar, the British pound, and the Euro
won't stretch as far as they used too.
In the latest Mercer Cost of Living Survey (2011) Johannesburg jumped 20 places ahead, listing at 131, and Cape Town climbed to 158, out of 214 countries polled.
Furthermore, escalating food prices and high fuel prices are rapidly eating into the previously reasonably priced South African lifestyle. To make matters worse, constant electricity price hikes mean that the cost of keeping on the lights will more than double in the next three years. And no matter who you are in South Africa, somewhere, you will be feeling that.
As is the case in most destinations, the cost of living in urban cities is higher than that in rural towns, and most expats will likely find themselves settling in one of South Africa's largest metropolises – Cape Town or Johannesburg.
All things considered though, most expats and locals will tell you, the quality of life in South Africa is unparalleled, and to quote a popular and extremely tired advertising campaign – that is “priceless”.
There is hardly a shortage of accommodation options in South Africa, and it won't take long before even the most un-nuclear expat family finds a home that suits their budget and lifestyle.
Expats should keep in mind that, generally, the farther away from the city that one chooses a home, the less expensive it will be. Though, some exceptionally expensive suburbs on the periphery of Cape Town and Johannesburg exist as exceptions to this rule.
For those who prefer to live just outside of the hustle and bustle of the city centres, there are quieter areas which cater for people who prefer a little more country air, but be prepared to travel, even commuting from home to work and school could very possibly mean an hour in the car, if not more, each way.
In Johannesburg, expats will get more space for their money than in Cape Town, but in Cape Town, a less spacious apartment or house can still be five minutes from the beach or two minutes from the mountain (certainly a redeeming quality).
Be prepared to fork out the following, or similar, on monthly home rentals in upmarket areas:
Alongside accommodation, transport and education costs, groceries will dominate the next largest chunk of a family budget, in terms of expenses. There has been a large increase, of roughly 8 to10 percent, in the cost of food in the last two years, and the prices continue to skyrocket.
Parents keen on taking their children out to eat, will soon realise that this past-time is an expensive luxury, kept aside for special occasions; the prices of eating out can amount to four times more than having a home-cooked family dinner.
For a family of four, who eat out once a month, and eat home cooked meals for the rest, are still looking at a high food bill. An example of a food bill for a family of two adults and two school-going children, who take lunch to school every day, and who eat
a home cooked meal at night, and who only indulge in luxury items such as sweets, chocolates and ice creams every so often, spend about 5000 ZAR a month and upwards.
Most families on a budget prefer to buy their groceries from a large supermarket that has a wide variety of different brands, including local produce and imported goods, such as Pick ‘n Pay. There is no question that local produce and South African brands are substantially cheaper than imported goods. The local quality is excellent, and it won’t take long before some South African brands become household favourites. There are also retailers that cater to the nostalgic expatriate taste buds, such as the UK Emporium, that only stocks items from the United Kingdom, but at a substantially increased price.
Keeping a grocery bill in budget, can be a mammoth task, even for the most seasoned shopper. Families who buy some household items and food stocks in bulk, and who plan ahead for meal times, are able to shave off some of the costs of the food bill every month.
According to the 2011 Xpatulator Cost of Living survey, the cost of education in South Africa is incredibly high. Out of 300
countries polled, Johannesburg claimed the 45th highest costs in the world, and Cape Town claimed the 68th highest costs.
Expats have many excellent educational facilities to choose from in South Africa, but there is a vast difference in fees associated with the much-coveted private schools and the ill-reputed government facilities.
Expect to pay anything from 30,000 ZAR per annum per child at private education facilities; tuition for the most prestigious facilities can be as much as 100,000 ZAR per annum.
Both public and privately funded healthcare is available in South Africa. Most expats will opt for private healthcare, as the standard is better and the ratio of staff to patients is substantially higher than in the government options.
Day to day costs are affordable, even if you don't have health insurance, but fees can quickly escalate and become
prohibitively expensive if specialists need to be consulted, or if there is an emergency situation. For this reason, it's recommended expats take out private health insurance in South Africa. Private care providers may ask for payments to be made in full, on the day. Expats need to make sure that their medical insurance packages will reimburse the costs incurred afterwards.
Fees for a general consultation will set one back anything from 250 ZAR and up, for a single appointment with a dentist, not an oral hygienist, expect to pay as much as 500 ZAR.
A comprehensive health plan for a family of four, that will cover most day to day expenses and any hospital costs in the event of an emergency, costs anything from 5500 ZAR and upwards, per month, depending on the family’s needs.
A hospital plan for the same family of four, that will only cover costs incurred during a hospital visit, will start at around 3000 ZAR per month. In terms of comprehensive medical insurance, there are plenty of reputable options on the market to choose from, and it won’t be difficult finding one that will suit the family and the pocket.
It is really not an option to consider the public transport system in South Africa, it is both chaotic and unreliable. Though improvements are on the way, expats will need to purchase their own vehicle.
Car prices can be reasonable, depending on personal taste, and it may not always be necessary to purchase a new vehicle. That said, expats should be wary of pre-owned cars that are priced too cheaply. If you spend less than 50,000 ZAR on a vehicle, you can expect to encounter an assortment of problems in the near future.
There are plenty of reputable agencies that offer pre-owned vehicles, with excellent maintenance and roadside assistance packages, and extra warranties, so that in the long run, one could save quite a bit of money.
One might look at paying anything from 100,000 ZAR for a pre-owned luxury Volkswagen sedan. If purchasing a new Volkswagen sedan, expect to pay 160,000 ZAR and up.
Insuring ones vehicle in South Africa is a must, and again, there is an excellent variety of options to choose from, and payments start from as little as 250 ZAR per month. Consider the low cost of insurance versus the huge cost of replacing a vehicle that is no longer road worthy.
Some plans can rise well above the 1000 ZAR monthly payment mark, so it may be essential to shop around before making a commitment. Car insurance plans offer excellent packages that may include roadside assistance, legal assistance and emergency services, to assist their clients in their time of need.
One may also need to have a good look at the running costs of any vehicle before purchasing one, and enquire about the availability and costs of spare parts that one may need from time to time.
The massive surge in fuel prices means that owning a car could be comparative in costs to paying for another home.
In 2009 a litre of diesel cost 6.40 ZAR and a litre of Unleaded petrol cost 5.68 ZAR. In 2011 those costs have risen to 9,10 ZAR and 9.74 ZAR, respectively, with more increases on the way. In short, choose your vehicle carefully. A “gas guzzler” can end up costing you nearly as much in petrol as in monthly payments.
Still though, those receiving payment in foreign currency should be aware that the US dollar, the British pound, and the Euro
won't stretch as far as they used too.In the latest Mercer Cost of Living Survey (2011) Johannesburg jumped 20 places ahead, listing at 131, and Cape Town climbed to 158, out of 214 countries polled.
Furthermore, escalating food prices and high fuel prices are rapidly eating into the previously reasonably priced South African lifestyle. To make matters worse, constant electricity price hikes mean that the cost of keeping on the lights will more than double in the next three years. And no matter who you are in South Africa, somewhere, you will be feeling that.
As is the case in most destinations, the cost of living in urban cities is higher than that in rural towns, and most expats will likely find themselves settling in one of South Africa's largest metropolises – Cape Town or Johannesburg.
All things considered though, most expats and locals will tell you, the quality of life in South Africa is unparalleled, and to quote a popular and extremely tired advertising campaign – that is “priceless”.
The cost of accommodation in South Africa
There is hardly a shortage of accommodation options in South Africa, and it won't take long before even the most un-nuclear expat family finds a home that suits their budget and lifestyle.
Expats should keep in mind that, generally, the farther away from the city that one chooses a home, the less expensive it will be. Though, some exceptionally expensive suburbs on the periphery of Cape Town and Johannesburg exist as exceptions to this rule.For those who prefer to live just outside of the hustle and bustle of the city centres, there are quieter areas which cater for people who prefer a little more country air, but be prepared to travel, even commuting from home to work and school could very possibly mean an hour in the car, if not more, each way.
In Johannesburg, expats will get more space for their money than in Cape Town, but in Cape Town, a less spacious apartment or house can still be five minutes from the beach or two minutes from the mountain (certainly a redeeming quality).
Be prepared to fork out the following, or similar, on monthly home rentals in upmarket areas:
- A two-bedroom luxury apartment in Cape Town city centre 15,000 ZAR
- A two-bedroom apartment in Johannesburg city centre 6000 ZAR
- A three-bedroom house in an upmarket Johannesburg suburb 13,000 ZAR
- A three-bedroom luxury house in an upmarket Cape Town suburb 25,000 ZAR
Food costs in South Africa
Alongside accommodation, transport and education costs, groceries will dominate the next largest chunk of a family budget, in terms of expenses. There has been a large increase, of roughly 8 to10 percent, in the cost of food in the last two years, and the prices continue to skyrocket.
Parents keen on taking their children out to eat, will soon realise that this past-time is an expensive luxury, kept aside for special occasions; the prices of eating out can amount to four times more than having a home-cooked family dinner.
For a family of four, who eat out once a month, and eat home cooked meals for the rest, are still looking at a high food bill. An example of a food bill for a family of two adults and two school-going children, who take lunch to school every day, and who eat
a home cooked meal at night, and who only indulge in luxury items such as sweets, chocolates and ice creams every so often, spend about 5000 ZAR a month and upwards.Most families on a budget prefer to buy their groceries from a large supermarket that has a wide variety of different brands, including local produce and imported goods, such as Pick ‘n Pay. There is no question that local produce and South African brands are substantially cheaper than imported goods. The local quality is excellent, and it won’t take long before some South African brands become household favourites. There are also retailers that cater to the nostalgic expatriate taste buds, such as the UK Emporium, that only stocks items from the United Kingdom, but at a substantially increased price.
Keeping a grocery bill in budget, can be a mammoth task, even for the most seasoned shopper. Families who buy some household items and food stocks in bulk, and who plan ahead for meal times, are able to shave off some of the costs of the food bill every month.
Education costs in South Africa
According to the 2011 Xpatulator Cost of Living survey, the cost of education in South Africa is incredibly high. Out of 300
countries polled, Johannesburg claimed the 45th highest costs in the world, and Cape Town claimed the 68th highest costs.Expats have many excellent educational facilities to choose from in South Africa, but there is a vast difference in fees associated with the much-coveted private schools and the ill-reputed government facilities.
Expect to pay anything from 30,000 ZAR per annum per child at private education facilities; tuition for the most prestigious facilities can be as much as 100,000 ZAR per annum.
The costs of healthcare in South Africa
Both public and privately funded healthcare is available in South Africa. Most expats will opt for private healthcare, as the standard is better and the ratio of staff to patients is substantially higher than in the government options.
Day to day costs are affordable, even if you don't have health insurance, but fees can quickly escalate and become
prohibitively expensive if specialists need to be consulted, or if there is an emergency situation. For this reason, it's recommended expats take out private health insurance in South Africa. Private care providers may ask for payments to be made in full, on the day. Expats need to make sure that their medical insurance packages will reimburse the costs incurred afterwards.Fees for a general consultation will set one back anything from 250 ZAR and up, for a single appointment with a dentist, not an oral hygienist, expect to pay as much as 500 ZAR.
A comprehensive health plan for a family of four, that will cover most day to day expenses and any hospital costs in the event of an emergency, costs anything from 5500 ZAR and upwards, per month, depending on the family’s needs.
A hospital plan for the same family of four, that will only cover costs incurred during a hospital visit, will start at around 3000 ZAR per month. In terms of comprehensive medical insurance, there are plenty of reputable options on the market to choose from, and it won’t be difficult finding one that will suit the family and the pocket.
The cost of transport in South Africa
It is really not an option to consider the public transport system in South Africa, it is both chaotic and unreliable. Though improvements are on the way, expats will need to purchase their own vehicle.
Car prices can be reasonable, depending on personal taste, and it may not always be necessary to purchase a new vehicle. That said, expats should be wary of pre-owned cars that are priced too cheaply. If you spend less than 50,000 ZAR on a vehicle, you can expect to encounter an assortment of problems in the near future.
There are plenty of reputable agencies that offer pre-owned vehicles, with excellent maintenance and roadside assistance packages, and extra warranties, so that in the long run, one could save quite a bit of money.
One might look at paying anything from 100,000 ZAR for a pre-owned luxury Volkswagen sedan. If purchasing a new Volkswagen sedan, expect to pay 160,000 ZAR and up.Insuring ones vehicle in South Africa is a must, and again, there is an excellent variety of options to choose from, and payments start from as little as 250 ZAR per month. Consider the low cost of insurance versus the huge cost of replacing a vehicle that is no longer road worthy.
Some plans can rise well above the 1000 ZAR monthly payment mark, so it may be essential to shop around before making a commitment. Car insurance plans offer excellent packages that may include roadside assistance, legal assistance and emergency services, to assist their clients in their time of need.
One may also need to have a good look at the running costs of any vehicle before purchasing one, and enquire about the availability and costs of spare parts that one may need from time to time.
The massive surge in fuel prices means that owning a car could be comparative in costs to paying for another home.
In 2009 a litre of diesel cost 6.40 ZAR and a litre of Unleaded petrol cost 5.68 ZAR. In 2011 those costs have risen to 9,10 ZAR and 9.74 ZAR, respectively, with more increases on the way. In short, choose your vehicle carefully. A “gas guzzler” can end up costing you nearly as much in petrol as in monthly payments.
