So we got this flyer in the mail advertising something called “The Hayes.” Turns out it’s a new complex going up at Page and Gough, which is strange because it’s actually a few blocks south of Hayes.

The front of the flier reads “Still Renting? Start Owning.” Which caught my attention. On the back is the following table:

Compelling eh? The fine print at the bottom reads:

“The Hayes monthly payments are based on the following: Studio purchase price at $419,000; 1 bedroom purchase price at $599,000; 2 bedroom purchase price at $799,000. Monthly payments shown reflect after-tax savings. … Interest rate based on 5/1 ARM Interest Only, and is fixed for 5 years. … First loan amount assumed to be 80% of purchase price or less, with a minimum down payment of 10% of purchase price. Interest rate and payment on second loan will be based on prevailing market rates and amount of down payment.

So what have I learned? A new 1 bedroom apartment (653-855 sq ft) costs $600k. That it’s between 75 to 280 sq ft larger than our current apartment with a study. A 10% down payment is $60k, so tack on another year to my “$1000/month savings plan” (that’s 5 now!). But their adjustable rate interest only mortgage (of the devil) only covers 80%! So I’d still have to get another loan to cover the remaining $60k (unclear whether that is is factored into their numbers above).

So that concludes our San Francisco real estate minute.