The price of the square meter (m2) in Portugal varies greatly depending on the location of the property. And Lisbon remains the most expensive area, with much higher values compared to the rest of the country. With a check of two hundred thousand euros, a family can buy, on average, a house with only 64 m2 in the capital. But if you climb slightly on the map and choose Santarém, for example, 146 thousand euros, buy a property with 172 m2.
Apart from the size of the house can more than double, leaving Lisbon, also the term of payment of the loan to the bank can decrease substantially. If you choose to buy in Coimbra, and taking into account a house with 100 m2, it will take 22 years to pay off the debt to the bank. In Lisbon, time doubles, they spend more than 45 years.
This is the conclusion of a study made for the Economic Journal, by the free simulation platform of financial products "ComparaJa.pt". The platform analyzed the maximum amount of housing credit available to each family, taking into account a 40-year loan, the average salary (Pordata data) and the average cost per square meter of their region (data from Casa Sapo portals, Idealist and Imovirtual). For the analysis, a financing value of 80% of the acquisition value and an APR of 2.9% were taken into account, considering the remaining 20% as the savings required to cover the initial entry value.
The analysis, made to the 18 districts that comprise Portugal Continental and including Madeira and the Azores, indicates that there are four regions where to buy a house with 100 m2 implies to have a provision to the bank for more than 40 years. They are: Lisbon, Faro, Porto and Madeira. In the interior of the country – Castelo Branco, Portalegre, Viseu, Bragança and Guarda – the same 100m2 will take less than half the time to pay, between 15 and 17 years.
The "Comparajá.pt" data also show that, although the average salary in Lisbon is the highest among the analyzed districts (852 euros), a couple intending to buy a house with 100 m2 will need to save more than 10 years to the initial input. With the square meter worth more than three monthly average salaries, 3,172 euros, a family that earns 1,704 euros per month, can obtain a maximum bank loan of 253,725 euros, when the total value of the property exceeds 317 thousand euros. And will pay the bank a monthly installment of 562 euros.
If we travel to Guarda, where the average salary is the lowest in the country (550 euros), it is possible to buy a house with the same size for at least 77% of the price charged in Lisbon. That is, 72,991 euros. A couple who choose to settle in this region will need to save just over three years for the initial entrance and the provision of the house will be around 363 euros per month.
The platform "Comparajá.pt" leaves the alert: "Through this analysis it is possible to perceive the need to make a careful analysis of the financial capacity at the time of requesting a loan. Being the values illustrative, it is fundamental that each family individually calculate the specific effort rate, so as not to press the rate of effort above the recommended and therefore prevent over-indebtedness.