MADRID – A recent report found that more than half of all homes purchased in the country were purchased with no mortgage. This striking statistic has caused a stir on social media.
Many people there expressed their disbelief and anger at the situation. They call it a scandalous revelation at a time when many people are underwater because they can no longer afford the increase in mortgage costs as a result of a rising Euribor. Others find in those factors precisely their argument to stop taking out a mortgage and pay for a home themselves, writes El Mundo. Twitterer @El_Yayo sees it differently, saying: “In other words, more than half is bought by the rich, investment funds and other mafia groups”. @sovieperiodico adds: “More than half of the houses are not bought by people who will live in them. This is a scandal.”
Indication of growing wealth gap
For many, the idea that so many homes are being bought without having to borrow money is an indication of the growing wealth gap in the country. With rising house prices, it is becoming increasingly difficult, if not impossible, for people with lower incomes to get a foothold in real estate. That puts this statistic in a different light.
“This is an absolute scandal,” said another Twitter user. “How can we have a situation where only the wealthiest can afford to buy homes? Something needs to be done to address this.”
Others pointed out that it’s not just about affordability, it’s also about fairness. “People who have worked hard and saved for years are being priced out of the market. Meanwhile others who may not have had to work that hard can just buy a house with cash. It’s just not right.”
Concerns about the wider impact of this trend
There are also concerns about the wider impact of this trend. If a significant proportion of homes are purchased with no need for a mortgage, this could lead to a reduction in lending from banks and other financial institutions. This, in turn, could have a negative effect on the wider economy.
Of course, not everyone on social media was upset about the situation. Some people pointed out that buying a home without a mortgage is a sign of financial acumen and good planning. However, these voices were largely drowned out by those who expressed their outrage.
What can be done to address the situation?
According to El Publico, some have suggested that the government should implement policies to make it easier for people on lower incomes to buy a home. Others have called for more regulation of the housing market to ensure prices remain affordable.