: views from the Hill

Monday, July 09, 2007

Now that is just unimaginable.

Regarding my real estate lust for 1417 15th St and my lack of $3.25m to spare, Christine commented: Monthly payments of $21,600. Now that is just unimaginable.

The monthly payments include mortgage (after a $650K down payment), insurance AND taxes. What a bargain.

But say you don't have $650K for a down payment and you want a really nice place, good location (even though it's near impossible to walk to any place that serves dinner and parking is extra).

You could lease the commander's house at the Presidio: 7 bedrooms, 4.5 baths. Nice large public rooms with space for HUGE parties for all your friends. A large basement. Restored. 4100 sq ft. "Only" $15K/month.


For your $15K/month you get a space to set your worldly goods. You have no equity. You earn no equity out of your monthly payment. You get no property tax write-off. You get no nothing, except for a lovely place to stay.

In fact, the Presidio leases its prime buildings like this at whatever the traffic will bear, so $15K/month is just the base rate. If two people want the place, they can bid up the lease price even higher.

Ah, the American Way.

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