I live in the river district area and Polygon released prices today for their latest development R+R. 50% sold within a couple hours as there were people camping outside since Tuesday. Surprisingly the SF pricing is still in Mid $500-Low $600. Also surprising is the sales manager told me a lot of the neighboring residents are buying up these presales.
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Originally Posted by dat_steve
A close friend just purchased a house with her husband. Doubt they make 6 figures each, but probably pretty close (gross). Only way they could afford a relatively decent down payment was to take out a LOC secured by her parents' house. even then the payments are pretty huge. I'm guessing this is how a lot of people whose families aren't super well off are doing it. Makes me cringe to think of using debt to get more debt.
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This is how a lot of people purchase second properties. Most banks will lend up to 80% of the equity of the property and this only is beneficial when the mortgage is paid off or a small amount is left (IE $1mil value with a sub $100,000 mortgage). The problem lies within homeowners pushing the limit with a large principle left. (IE $1mil value with an above $500,000)