Last year were signed only 275,000 mortgages of the nearly 320,000 homes that were sold in Spain in 2012, according to data from the ine (National Statistics Institute). This means that three of every ten homes had been paid cash, saving up to a 50% avoiding extra interest of the loan or the expenses of appraisal.
Buyers are, in general, small and medium-sized home investors over the age of 55, who do not possess large fortunes but who are able to pay the full price of the house without having to go to the bank for a mortgage.
The type of property that are interested in tends to be small and old, with very reduced prices – with between 50 and 70 discount from the peak of the housing bubble-, and thanks to pay cash, manage to save up to 50 extra avoiding interest on the loan, appraisal costs or mandatory engagement of life and home insurance and credit cards.
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