How many years of gross salary do it take to pay for the house?
When buying a house, several factors must be taken into account: the price of the property, the financial solvency, the financing, the costs associated with the transaction. But it is also important to know the effort rate that involves the acquisition, that is, the time (in years) that a dwelling can take to pay if the entire annual gross salary was used for this purpose.
Idealista made an estimate of the average annual gross salary for 2020 and the average price of an apartment T1 per district/city, in order to calculate the effort rate required according to the location of the property concerned.
The question that served as the basis for this exercise, following a Swiss Bank ubs study that calculated the effort rate to buy a house in the center of the major world cities, without contemplating Portugal, is:
If we used the entire gross annual salary to pay for an apartment of typology T1, how many years would it take to have the house paid, according to the area of the country where it is located?