How to buy a $1 million home in San Francisco for $2,000 a month: Interest only loans and low interest rates provide for maximum leverage.

Dr. Housing Bubble reports:

Some of you may remember San Francisco as it was in the 1970s. It was a place where those with very little income still had the chance to be welcome regardless of earning potential. In fact, much of the city’s vibe went against the machinery of capitalism or old forms of traditionalism. So it is ironic that today, it has become one of the most expensive cities and many that live in the city practice a magnified version of NIMBYism causing housing values to rise to stratospheric levels. It is no surprise then that the typical rent in San Francisco is $3,200 per month for a basic apartment and only 36 percent of households actually own. This in a market where tech workers earn good income. You have many tech workers doubling and tripling up just to cover the rent. Others are living at home with their parents. In California if there is a will there is certainly a way. The interest only loan is making it possible for those on tight budgets to speculate heavily on real estate. What if I told you that you could buy a $1 million home with a $2,000 mortgage payment per month?

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