SOUTH Africa has been named the fourth most affordable country in the world in which to buy property, according to a study by Compare the Market.
The study looked at average property prices per square metre and average disposable household income in each country, and used these to determine the cost per square metre as a percentage of annual income.
The most affordable country was Turkey. It has the lowest price per square metre ($736.12) and an average household disposable income of $18 302, giving an affordability ratio of about 4.0%.
In second place was the United States. Although the US has a much higher property price of $2 845.82 per square metre, it also has a higher average disposable income of $45 284, meaning the affordability ratio is 6.3%.
The third most affordable country was Mexico, with an affordability ratio of 7.1%. The average disposable income in Mexico is fairly low compared to other countries, at an average of $13 965, however, it also has some of the cheapest housing, averaging around $984.63 per square metre.
General Manager of Home and Contents Insurance at Compare the Market, Stephen Zeller, said trying to buy a property currently is harder than it's ever been, largely thanks to the pandemic in particular.
He added that while property prices, costs of living and property shortages are reaching new highs, wages and disposable income have struggled to keep up, which means that for some the property buying process may at times feel impossible.
"However, annual incomes and property prices vary a lot from one country to the next, and so it’s not bad news for everyone, especially for the countries that rank in the topmost affordable places to buy property," he said.
He said the same can also be said for countries where affordability has plunged.
"Buyers can still have some luck finding areas with accessible housing if they are willing to sacrifice on proximity to major metropolitan areas, as an example," Zeller said.