According to Istat (Italian National Institute of Statistics) data, the average annual family income in Italy is 31,393 euros.
What can you buy for your money in Italy? / Gtres
What can you buy for your money in Italy? / Gtres

According to Istat (Italian National Institute of Statistics) data, the average annual family income in Italy is 31,393 euros. The Tecnocasa Group's Study Office in Italy has carried out a simulation of property purchase corresponding with these statistics in order to understand what type of housing can potentially be purchased in Italy with the available budget.

The projection of Tecnocasa was carried out with certain criteria; by assuming that buyers want to purchase a property using a 25-year mortgage, at an average rate of 1.44%, with a mortgage installment/income ratio of 30%, as should always be taken into account.

On the whole, the installment/income ratio indicates the repayment capacity of the mortgage loan. Another parameter considered by Tecnocasa's Study Office, for the purchase projection, was a loan-to-value ratio of 80% (the loan-to-value indicates the ratio between the sum obtained with the mortgage and the value of the property used to guarantee the loan).

With an income of 31,393 euros, and taking into account the conditions listed, a buyer should therefore be able to purchase a home worth 228 thousand euros. However, buyers must have at their disposal an initial capital equal to 20% of the price of the property, i.e. 45,600 euros, in addition to the money to cover all incidental expenses for the sale and purchase of the loan.

Article seen at: Reddito medio nucleo familiare e acquisto casa (Tecnocasa)