Colorado Springs: most affordable homes in Colorado (foreclose, movers)

[possumator]

That's kinda how I feel. While I would love to live in a neighborhood of 250,000 dollar homes, it just isn't possible on my 39k income. And based on the American median personal income of about 45k, more than a few others are in my same situation.

Looking at the article from the first post, the lowest price homes in CO still average 200k. While contrasted to the rest of the nation it surely is a comparative deal. But it also illustrates how the overall American housing market is still very much overpriced and has a very long way to drop until it becomes affordable again. In my state alone (Vermont), 70+ percent of the local population cannot afford a median priced home (and that's not based on personal income rather its combined household income....even more frightening).

Say, what does 100 grand fetch? Any decent condos for that price?

[LWilson68]

My 2 cents (for what it's worth): There are homes to be had for under $200K in decent neighborhoods. But these city data forums don't discuss them because these forums are mainly information sources for people relocating here because of job transfers. And most of these people with job transfers are in really good jobs (aerospace, IT, etc), so they make a lot of money and can afford the more expensive places.

If you're a writer, or teacher, or work for a ministry, then these forums really aren't helpful much of the time, because they're all about living in Pine Creek or Monument and D-20 or D-38.

I hope nobody takes offense to this post, but I feel I'm pretty spot on. And I'm in your income range possumator. PM me if you want to know what my strategy has been for finding reasonable real estate. I've been looking so long (forever it seems like!) I've learned a few things

[love colo summers]

Originally Posted by Card Shark 2

I is just smart.

Is not a very smart comment . . .

[ryanek9freak]

I live in D-20, and it takes 3 people to pay the rent on my house. God help us if we were buying it.

[SaxLuva]

Originally Posted by ryanek9freak

Yeah for real! What kind of gib have you been cooking up and smoking? I make near $60K a year, and still, there's no way I could afford a $250,000 house by myself.

The mortgage would be around $2000 a month!! That would be half my monthly income!

Wouldn't that debt ratio be a little high?

I work for the Army and $60K would be a raise for me............. My point is, while $200,00 for a house may not seem like a lot in some areas, with the cost of living in COS in comparison to the wages, $200,000+ is a lot for a house.

[treedonkey]

Originally Posted by ryanek9freak

...there's no way I could afford a $250,000...

The mortgage would be around $2000 a month!!

That's not true. It depends on interest rates, but if you got a 30-year fixed at 7% against $250, the monthly payment would be around $1300-$1500. There's no guarantee you could get 7% on that mortgage, but if you have some cash to put down, you very well could get that rate, and your monthly would be even lower due to reduced principle. Then there's the tax writeoff for interest, which could make a 1400/mo payment feel more like 1300, at least during the first few years.

But, then, I'm not a bank, or a financial advisor, so don't take my word for it.

[Mike from back east]

Bloomberg website says avg for 30-year mtges is now 6.29%, down a bit from a month ago.

Lots of decent stuff up in Briargate for $200k.

Mortgage of $200k at 6.5% for 30 years is $1260/month, plus about $240/month for taxes & insurance: total $1500/month.

Guessing that a tax deduction would reduce that by $100/month.

You could take in two housemates at $400/month each and cut your cost to $600-700 month. Seems possible.

[Charles]

Originally Posted by Mike from back east

Bloomberg website says avg for 30-year mtges is now 6.29%, down a bit from a month ago.

Lots of decent stuff up in Briargate for $200k.

Mortgage of $200k at 6.5% for 30 years is $1260/month, plus about $240/month for taxes & insurance: total $1500/month.

Guessing that a tax deduction would reduce that by $100/month.

You could take in two housemates at $400/month each and cut your cost to $600-700 month. Seems possible.

I think lenders (especially now) would balk at considering the housemate income for loan size determination. Meaning, the lender is still looking at the W-2s, real income, for it's ratios, around 28% to 36% or something like that. Of course, if he qualified without the housemates and then got the housemates that would be great. I did that for eight years in CA. Buys lots of toys for the bachelor.

[ryanek9freak]

Yeah, when I owned my own house in Ohio, my mortgage was only $700 a month. I had roommates and they pretty much paid my mortgage for me!

I was living for damn near free for a couple years.

[treedonkey]

Originally Posted by ryanek9freak

I was living for damn near free for a couple years.

My advice (as if you asked for it) is, if you ever get in a situation like that again, save, save, save - at least the amount you would otherwise be paying per month, to go toward future investments.