Single income family seeking honest advice (Denver, Colorado Springs: for sale, real estate, foreclosures)

[bandkfldes]

Recently, my husband was offered a job transfer to Colorado Springs. Currently, we live in Northern California and we are a single income family with two very small children. Affording a home out here on a single income is not financially responsible for us, therefore we welcome a better opportunity some where else.

Our monthly income will be $2550.00 after taxes once we move there. Is this reasonable? Will we struggle to give our children a decent life?

Thank you in advance for your opinions.

[PokerMunkee]

I would rather be in Colorado than any city in California.

Property taxes in Colorado Springs are very cheap. Houses can be had dirt cheap as well.

That being said, $2,550 isn't much for a family of 4, as you already know.

So let's do some math on a home.

Lets use this home for example:
2525 Gina Dr For Sale, Colorado Springs CO Real Estate

1972 3bed/2bath/1332 sq ft priced at $120,000

According to the online assessor records, taxes are $586.27/year on this property. I wonder how much taxes on this house would be in California where you live?

Lets say you borrow $115,000 (you put $5,000 down) for 30 years @ 5.5% with $600/year for taxes and $500/year for insurace. The calculator says your mortgatge will be $744.62 (includes Principal, Interest, Taxes & Insurance). Add another $100/month for PMI.

I think that is very doable with your income with a good budget. Depending on how much you can put down and feel comfortable, you could be looking at even nicer homes in the $140 range. Remember, this is your first house. It doesn't need to be new and great. In 10 years, you should have enough equity to move on up to a bigger and nicer home.

Gas and utilities should be cheaper as well. Car insurance should be cheaper as well. Not sure about vehicle registration, as it's pretty high here, but I'm guessing Cali is similar. I pay about $250/year to register my 2006 Dodge Magnum for example. It gets cheaper as the car gets older and it's based off how much the car was new. I believe they say my car was $36k new. People that live in Colorado Springs can chime on how much they pay for their utilities, it's a little different up in Woodland Park.

I'm guessing you factored in income after taxes with Colorado's state income tax? Colorado's state income tax should be almost half of what California's is. So if you are making $50,000/year, as much as $2,000 could be going into your bank account instead of the state's coffer. That's almost $200/month you can spend on your mortgage! FYI - Colorado's state income tax is a flate 4.63%. I believe Cali has a scailing rate, where if you make over $47k, it's 9.3%.

Local sales tax is confusing, but I believe it's 6.9% in Colorado Springs on anything you buy. Not sure what you pay in Calif, looks like Sacramento is 8.75%. Not a big deal if you only spend $10,000 year in goods, as you would only save $100-200/year in Colorado. But it ads up

[smdensbcs]

Originally Posted by PokerMunkee

According to the online assessor records, taxes are $586.27/year on this property. I wonder how much taxes on this house would be in California where you live?

A 1972 3 bed 2 bath home in CA (post-real-estate-bubble-burst) is, I suspect, likely still going to run between $300K to well over $1 Million, depending on city, region, proximity to coast, etc. Last time I bought real estate in CA (only once, thankfully, and never again, hopefully), the property tax rate is 1% of purchase price annually. That puts annual property taxes on that house in CA between $3,000 to well over $10,000.

Unless of course the owner purchased the house when Prop 13 was passed in CA back in the late 1970's - they'd pay about $15-20 bucks and are allowed (by statute I think) to pay with monopoly money.

[Ultrarunner]

Originally Posted by smdensbcs

A 1972 3 bed 2 bath home in CA (post-real-estate-bubble-burst) is, I suspect, likely still going to run between $300K to well over $1 Million, depending on city, region, proximity to coast, etc. Last time I bought real estate in CA (only once, thankfully, and never again, hopefully), the property tax rate is 1% of purchase price annually. That puts annual property taxes on that house in CA between $3,000 to well over $10,000.

Unless of course the owner purchased the house when Prop 13 was passed in CA back in the late 1970's - they'd pay about $15-20 bucks and are allowed (by statute I think) to pay with monopoly money.

Oakland CA has hundreds of listings under a 100k and it is centrally located in the very expensive SF Bay Area.

By the way, the Property Tax is 1% of the value at transfer and is adjusted for inflation 2% annually.

Prop 13 applies to every taxable property in the State... no matter if it was bought the year Prop 13 became law in 1978 or yesterday.

People that bought modest homes in my city 30 or more years ago still pay around $2000 in tax yearly... the 1% is only the Statewide rate... local cities, counties, special districts are in addition... my tax rate is over 1.5%.

[otowi]

I think it is doable, but not "easy". But, if you are already buried in debt, I'd say No - but still easier than CA I would suppose. That monthly income could be quite livable unless you are making car payments, loan payments, credit card payments on top of rent/mortgage.

[bandkfldes]

Thank you to everyone that has responded! My husband was offered his job at $18.74 an hour (about $36,000+ yr). It's the same company he works for out here.

We have $0 debt and paid off both of our cars when he was serving over seas about 3 years ago. Financially, we knew it was going to be a sacrifice for me to be a stay-at-home mom and have made it work beautifully out here. That being said, we are willing to pay around $1000-$1100 a month in rent for the first year until we get to know COS better. Do any of you feel as though we might be able to find a small house for rent, in a family-oriented neighborhood? Any website's that you could recommend?

Currently, my husband works in Oakland, CA and we live as far away from that city as possible. Our children are our #1 priority, therefore I am looking for the safest place I could possible bring them to out there. I know crime has no address, but I don't want to be where it happens the most in COS.

Thank you again, in advance!

[Ultrarunner]

Originally Posted by bandkfldes

Thank you to everyone that has responded! My husband was offered his job at $18.74 an hour (about $36,000+ yr). It's the same company he works for out here.

We have $0 debt and paid off both of our cars when he was serving over seas about 3 years ago. Financially, we knew it was going to be a sacrifice for me to be a stay-at-home mom and have made it work beautifully out here. That being said, we are willing to pay around $1000-$1100 a month in rent for the first year until we get to know COS better. Do any of you feel as though we might be able to find a small house for rent, in a family-oriented neighborhood? Any website's that you could recommend?

Currently, my husband works in Oakland, CA and we live as far away from that city as possible. Our children are our #1 priority, therefore I am looking for the safest place I could possible bring them to out there. I know crime has no address, but I don't want to be where it happens the most in COS.

Thank you again, in advance!

Working in Oakland and living as far away from "That" city as possible certainly comes at a price... your poor husband.

Just the rising cost of fuel and increased auto maintenance, not to mention the increased exposure your husband has from being on the road so much and loosing time with the family.

I couldn't do it... I live in Oakland and it takes 7 minutes to drive the 4 miles to work...

I have colleagues that got caught up in the Real Estate Boom, bought home in Brentwood, Tracy, Stockton, Salida and other areas... to every last one, they regret it.

They had no idea the toll commuting takes and the dangers when trying to get to work in the Tule Fog where you can't see the car in front of you and now they own homes they can't sell because the outlying areas are some of the hardest hit in the State with more than 50% of the sales being foreclosures.

If moving to Colorado means no more commute and living through the seasons is not a problem... try to make it happen.

The brother and sister-in-law of my good friends spent 31 years in Colorado Springs and loved every minute of it... they thought it would be their forever home til he took a bad fall on ice last year and broke his hip... not a good thing at any age, especially not good when you are 70.

They sold their lovely home, a home they built and bought a condo in Santa Barbara... no more snow and ice and they are 10 minutes away from the Grandchildren.

Moving doesn't have to be forever, it only has to make sense in the present.

Colorado truly is magnificent...

[otowi]

The house next door to me just went up for rent and is probably in that price range or less. I'm in Security - the Security/Widefield/Fountain areas are known as a middle/working class family community.

[Mike from back east]

Originally Posted by bandkfldes

... That being said, we are willing to pay around $1000-$1100 a month in rent for the first year until we get to know COS better. Do any of you feel as though we might be able to find a small house for rent, in a family-oriented neighborhood? Any website's that you could recommend?
....

Hello....been to Oakland many times to visit the Army base and seaport they ran...

There are good school districts all over the area: D8, D11, D12, D20, D38 and D49 to name the most popular. If you're headed to the Fort Carson area, on the southern end of town, look for rentals in Fountain, in D8.

Try searching for rentals in Padmapper, a really great tool, just zero in on any neighborhood in town and see what available.

Another search tool is the local realtor assoc site: click on For Rent; select Fountain (or the 'hood of your choice) from the drop down list; select Single Family Homes; in the MAX rent column select whatever dollar figure you want; select your minimum number of BRs; draw a map box per the instructions; then click on search. It will bring back several rentals. You can search areas all over town with this tool.

Where will your DH be working? Usually there is good housing nearby and the more you tell us about your job location, the better our posters can help you zero in good areas. Virtually all of this region is a good area as far as crime levels, things to do, affordability, etc.

[gn3]

If your income is staying the same, you'll have a much higher standard of living in Colorado Springs vs. almost anywhere in CA. I say this as someone who used to live in the bay area. The amount you mention is not a high income most places, as you know, but if you can get by in CA you'll find it easier here. Especially as you seem to have great financial discipline. Finding safe neighborhoods/good schools on a housing budget will be easier as well.

Finally, you should be able to find a small house (2/2 or 3/2) to rent in a decent area of town for under $1000, probably $900 range or so.

As long as you are ok with the colder weather, with the job offer in hand, I think it will be a good move for your family!

COS does not have the extensive cultural opportunities that the bay area does, but if the main thing you are looking for is a safe and laid-back environment for your family, that is not difficult to find here. And Denver isn't too far up the road for occasional day trips.