South Africa is one of the wealthiest countries in Africa. In terms of overall economic growth, it stands second in the continent just after Nigeria. Reliable data shows that it is an economy that reports a GDP of around 350-400 billion USD per annum. This economic prosperity among many other factors attracts ex-pats from around the world to this country located in the Southern tip of Africa.
For expats coming from the Western part of the world South African life offers a better cost of living along with a decent quality of life. However, it will be overlooked to consider it as a cheap destination. Especially if you are relocating to the three capital cities Cape Town, Bloemfontein, and Pretoria, or the metropolis of Johannesburg and Durban the cost of living can be pretty much on the higher side. Having said that, the quality of life offered by these cities is also top-notch.
Bifurcating Cost of Living in South Africa
South African Rand denoted as R or ZAR is the currency that will be mentioned from hereon.
Housing Costs
In case an expat plans to go for rental properties average rent around the country is about R7900 equivalent to 420 USD. It varies from city to city. The suburbs are mostly affordable with a rent that comes under R8000 per month. However, in the middle of the city, an expat may have to be satisfied with one-bedroom apartments for this rent. In case they bring a family most long distance moving companies South Africa suggest to accommodate up to R 30000 for accommodation. In the case of buying a home, South Africa allows foreigners to buy property. The asking price generally goes above R 1,000,000. Additionally, expats will have to pay capital gains tax on reselling. In case an expat decides to settle in this country buying is considered as an investment with high returns.Utility Bill
If we take Johannesburg for example a 915 square feet flat could cost around R2000 per month on utility bills. Cape down can be a more affordable option with about R1400 per month. Ask any relocation companies in South Africa, and they will suggest anywhere between these figures. Also expect to have a hike in prices, especially water bills, during drought periods.Education
Since the public schools offer poor quality of education international moving companies South Africa often recommend to send their children to international schools. The tuition fees in these schools can cost up to R70000 per year. However, if an expat is short of money they can consider public schools in the major cities such as Johannesburg. Since there is a lack of government funding even though there are no tuition fees they expect parents to contribute. Long distance moving companies South Africa observe this contribution to be in the range of 30,000 to 70,000 ZAR.Health Care
Public healthcare is available at a subsidised rate with the government spending 40 percent of expenses. The rest of the money expats have to pay from their pocket. However, the quality of service is poor compared to the private sector. Hence private health insurance is often recommended by moving companies in South Africa for their clients. While purchasing insurance make sure that it has proper coverage and it doesn’t have clauses to cancel in case of severe illness or as you age.As the major cost-intensive areas such as housing, utility bills, healthcare, and education have been dealt with, the time has come to draw the bottom line. The cost of living is not cheaper but better than in Western countries in South Africa. If you are on a tight budget narrowing down suburban areas that offer better living conditions at reasonable cost can be of help. In case if you can afford to buy properties it has benefits in the long term. Also, remember that the utility bills vary per city. So work with the best long distance moving companies in South Africa to make a wise decision. Helpxpat with its ground-level collaborations and years of experience in this country can be of great help.