patrick.net

"Who is buying" - well, could be the heir of a deceased parent's estate or life insurance policy.

The life insurance policy benefit could give the buyer enough for a 20 percent down, depending.

Could also be a person whose parents or relatives live in a country where its easier to hide income from taxation and so the family is able to come up with the $$$$ to buy outright or with a substantial down.

~Misstrial

Ahem, see the other thread

SJ says

http://patrick.net/?p=1080674#comment-770423

I'm not sure who is buying them, but I know how they can do it:

With new jumbo limit of $625,500, they just need to save up $174.5K:

800000-625500 = 174500

They push the risk of default onto taxpayers for the $625.5K, and it puts them nicely over 20% for their downpayment:

174500 / 800000 = .218

So they get a 30-year at 4% and pay $25K in interest per year, which is only a little higher than monthly rent for the same thing. Quite do-able on $100K year, and probably seems reasonable if you ignore all the other costs of owning. But it's those other costs that make buying financially stupid:

property tax
insurance
house value loss
purchase costs
sale costs (a whopper, at 6% or so)

True well those Asians must have tons of $$$ after most of the good jobs have been offshored to China and India with none left in the USA.

APOCALYPSEFUCK is Tony Manero says

Well, it comes with a view of Page and Brin's 747 taking off from Moffett. You get to wave as they fly over and empty the onboard loo in your back yard, or take pot shots at your pets from an open door.

Google uses the runway at Moffett Field? Why? That is a military installation. At least some of it still is. (I'm on base from time to time)

Same people who will go belly on their home purchase.