The prices in the area are very inflated and most properties in the area that are listed above 400,000 are on the market for 6 months or longer. 

The local Government has invested in the infrastructure immediately neighboring this subdivision (streets, commercial expansion) and new local business is on the rise in the surrounding area.

Keep in mind the expense will be subject to inflation so your seller concession needs to account for the fact that you’ll have slow but still exponential growth on 3500 extra expense for as long as you own it.

I'm for it if our property values rise. 

Meaning the banks would never issue that loan because it most likely loses money, due to inflation, over the long term. 

With real numbers you're probably at 2% annually, so you're breaking even after inflation and only making money on appreciation of the property

Just thinking  The costs to buy apartment complexes with a lot of units has been on the rise and there is a big reason for it -  millennials aren't buying homes. 

@Andrene AlexanderHey,Banks in Germany finance 100% of purchase price you would only come up with broker fee and tax for buying the property which is quite high 5-6.5% of purchasing price... but German real estate market inflated a lot do to low EZB rate...Let me know if you need more info...

With zero debt, it can be a great store of value (inflation hedged asset which produces an inflation hedged income stream).

If you want to raise the family here in Orange County and have your kids go to Irvine schools, you might as well buy now before it gets even more inflated.