So if buyer gets a 5% fixed and finance $420k with the other $110k down that is approx $2,254 a month plus $473 Mello/HOA and lets say $100mo for insurance and maint. Insurance might be more in that area due to fires? That is $2,827mo and I didn’t factor property taxes because that annual amt is likely right around the tax break you get for owning.
This is a bubble development. Many bought at peak so we will see many more REO properties in 4S Ranch. Won’t look like such a deal when you have $110k down, paying $2,827mo and comps around you are selling for $450k in the next 6-12mo.
If it wasn’t such a new area then I wouldn’t worry that much, but with hundreds of your neighbors close to giving their homes back to the bank….I would worry about how low those banks will sell at
