Laughing Off Loan Regulations? 5060 Generation Sold Stocks to Buy Homes

Financial assets grown through stock market gains are emerging as a major resource for people in their 50s and 60s to purchase homes, analyses show.

According to the office of Representative Kim Jong-yang of the ruling People Power Party, who sits on the National Assembly's Land, Infrastructure and Transport Committee, the amount of money that people in their 50s and older poured into home purchases by selling stocks and bonds during the first seven months of this year surpassed 2.8 trillion won, already exceeding last year's annual total by 36.6%.

On the other hand, the proportion of bank loans stood at a mere 11%, serving as the background for the soaring purchasing power of the 5060 generation despite stringent loan regulations.

The total purchase amount of homes bought by people in their 50s and older from January to July was tallied at 41.2743 trillion won.

Among them, funds raised through the disposal of existing real estate reached approximately 19.4310 trillion won, accounting for 47.1% of the total.

Proceeds from the liquidation of stocks and bonds also amounted to 2.8167 trillion won.

Combining the two funding sources yields 22.2477 trillion won, which is 53.9% of the total home purchase amount.

In other words, the 5060 generation raised more than half of their home purchase funds by cashing in their existing assets.

Conversely, their reliance on financial institution loans was relatively low.

Funds raised through financial institution loans for housing purchases accounted for only 14.6% for those in their 50s, and 7.2% for those in their 60s and older.

Meanwhile, those in their 30s and 40s showed the exact opposite trend.

The proportion of loans from financial institutions for people in their 30s stood at 40.3%, the highest among all age groups.

The loan amount alone reached 19.0743 trillion won.

Those in their 40s also secured 25.5% of their home purchase amount through loans from financial institutions.

Experts analyzed that for the 3040 generation, the sheer limit on borrowable amounts dictates whether they can buy homes just as much as interest rate levels.

They explained that with commercial bank mortgage rates already having risen significantly, total loan management and various regulations failing to secure the necessary amounts have a more direct impact.

Reported by Kim Jiuk | Video by Lee Yujin | Graphics by Yook Do-hyun | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.