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 (Us$736.12) and an average household disposable income of US$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 US$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 US$13 965, however, it also has some of the cheapest housing, averaging around US$984.63 per square metre.
