Cost of Living in Cape TownLiving Expenses and Quality of Living for expatriatesin South Africa
The cost of living in Cape Town is lower in South Africa for expats comparing the living expenses here with the costs for living in other big expat cities like London, New York or Paris.For expatriates relocating to South Africa, Cape Town living is more expensive than Johannesburg living as the expenses especially for housing are higher here. Cape Town is ranking 151st and Johannesburg 171th in the World Wide Cost of Living Survey of over 214 cities published by Mercer in May 2010. Regarding the costs for housing, transport, food, clothing, household goods and entertainment, you will find living expenses in South Africa are comparable with those in New Zealand, as Auckland ranking currently 148 as New Zealand's most expensive city and Wellington with 161st place as the cheapest city there. The prices in South Africa have risen annually in the region of 8-10% in the last years, according to the newest Mercer Survey released in May 2010. The Economist Intelligence Unit (EIU) offers detailed country surveys which are an excellent source of information about the real cost of living as well as the quality of living for subscribers.
FREE Cost of Living Comparison of South Africa, the USA, UK and Germany
Cost of living in Cape Town: FactsFood items in South Africa are lower in price than in European or American cities. But imported grocery goods are rather expensive. Often however you might be able to replace them with good quality local products. Clothing is much lower in price than overseas. You can get even designer wardrobe for half the price you would pay in Rome or Paris. Good quality leather shoes are however on the pricey side with prices comparable with European cities. Housing prices are comparably low in Cape Town. You can find good three bedroom houses in safe areas for R15,000/month. Expect however to pay more if you prefer to live in a gated estate or want to have a pool or other extras. The utility prices are soaring at the moment. Council costs (water, waste water and waste collection) amount to roughly R250 per month. This is also influencing the cost of living significantly now as the energy costs were increased dramatically in July 2010. The times of buying the cheapest electricity in the world are over and Capetonians are confronted with a hefty price rise of 35% in electricity costs since the last year. This means the average household will have bills around R800 per month, with higher rates depending on use of pool, heating, air-conditioning, tumble dryer etc. Should you have to pay an Armed Response team or security company their costs usually amount to R390 per month. The fees for the education of your children also have to be taken into account. The fees for private schools are relatively low compared to rates you would have to pay overseas. The average charge will amount to R30,000 to R55,000 per child/year. Some prestigious private school however charge much more, in fact in the region of R100,000/school year. Should your employer not offer to pay for the education of your school-age children, you could send them to state schools which have much lower or no fees, but be sure to check them out before you move as the standard of the South African state schools in your area might not be acceptable for your expectations. Costs for private transport were rising and falling with the oil prices like everywhere in the world. The car prices now are still relatively stable. Diesel in Cape Town now costs R9.46, with the petrol price a bit lower at R9.18/l. The petrol and diesel prises are usually only going up or down on a Wednesday after an announces price change. The prices are very similar at most of the petrol stations and vary only a couple of cents. This way a full tank for a medium sized car will cost you around R500. Car insurance for a decent city hopper like VW Golf will set you back another R550/month. Leisure Activities are again relatively cheap, as dining out is not as expensive as in many other great places around the world. You can have a delicious meal in a good restaurant with starter, main-course and a decent bottle of wine and after-meal coffees at R700 for four persons. Cinema tickets are usually R48, but discounts apply when using a membership card, Different prices at the different cinema chains. Membership for a gym costs monthly around R290/person with a one-year membership. Are there any taxes like VAT on personal products?All prices in South Africa include VAT (value added tax) of 14%, except for some basic food such as maize, white bread, fruits and vegetables, transport and education.
Calculating the cost of living in Cape TownTo check your own needs you should take into account the following factors:• Cost of food items and daily grocery shopping • Cost of clothing, shoes, cosmetics • Cost of housing: rent, mortgage bond, utilities and security • Cost of keeping a car: petrol, insurance • Cost of personal local insurance for your home and its contents • Cost of leisure activities and going out in Cape Town
More detailed Expat Shopping Information for Cape Town. Quality of Living in Cape TownAlso due to the low cost of living, the standard and quality of living for expatriates is high in Cape Town. The city ranks as one of the 20 most favorite places of expatriates.
What makes Cape Town so popular with expats? Find answers here. The status as one of the most preferred cities for expat living is also confirmed in a survey conducted by Mercer in the Worldwide Quality of Living Study 2010. This study compares cities around the world and shows that the quality of living in Cape Town is high. The Mother City takes 86th place (slightly up from 87th in 2009) in the survey of these 221 cities around the world. The eco-city rating which compares water availability, water potability, waste removal, sewage, air pollution and traffic congestion, even puts Cape Town on 30th place right after Munich/Germany (29th) and before Belfast/Ireland(31st) or Lyon/France(32nd), Hamburg and Stuttgart (both 34th place).
Do you want to subcribe to my ExpatCapeTown Newsletter with loads of Cape Town Insider Tips for Great Cape Town living? Then subcribe to it here. More about the Expat Lifestyle for Expats in Cape Town
|
Subscribe to your FREE monthly ExpatCapeTown Newsletter here:
