castle rock questions (Denver, Colorado Springs, Aurora: appliances, big house, neighborhoods)

[lawadvocate]

I don't really see a problem with buying a $550k house on $125k/yr income. Unless you have 2 lexus/mercedes car payments you should be fine and still have plenty of money left over for whatever you would like. Not everybody like "formercalifornian' spends tons of money each month to go out and eat and go out with friends. We eat out when we want and drive nice but somewhat older cars and are doing just fine. In fact, I moved from South FL to Castle Rock to avoid the whole peer pressure from neighbors/friends to go out at the time. Assuming you avoid Castle Pines, you will not face this kind of pressure in Castle Rock. On another note, Bell Mountain Ranch offers a really good deal for your money if you want land but taxes are MUCH higher there then most any other part of Castle Rock (set aside an extra $200-$300 per month on a $550k house). We didn't buy in Bell Mountain (but were really tempted) because it's not really family friendly but I definitely see the appeal and value. One other note, interest rates on a 30 year fixed are currently 4.875% with no origination or discount points; at that rate you will be able to buy a lot more house then @ 6 or 7 percent as somebody else has suggested.

[formercalifornian]

Originally Posted by lawadvocate

I don't really see a problem with buying a $550k house on $125k/yr income. Unless you have 2 lexus/mercedes car payments you should be fine and still have plenty of money left over for whatever you would like. Not everybody like "formercalifornian' spends tons of money each month to go out and eat and go out with friends. We eat out when we want and drive nice but somewhat older cars and are doing just fine. In fact, I moved from South FL to Castle Rock to avoid the whole peer pressure from neighbors/friends to go out at the time. Assuming you avoid Castle Pines, you will not face this kind of pressure in Castle Rock. On another note, Bell Mountain Ranch offers a really good deal for your money if you want land but taxes are MUCH higher there then most any other part of Castle Rock (set aside an extra $200-$300 per month on a $550k house). We didn't buy in Bell Mountain (but were really tempted) because it's not really family friendly but I definitely see the appeal and value. One other note, interest rates on a 30 year fixed are currently 4.875% with no origination or discount points; at that rate you will be able to buy a lot more house then @ 6 or 7 percent as somebody else has suggested.

I was making a point, lawadvocate. Don't draw any conclusions about my lifestyle, because you might just be surprised. It's actually very modest, even by Castle Rock standards, and I would know since I used to live in your neighborhood. That said, I do enjoy an occasional dinner out with my spouse and/or other adults for my sanity's sake, and I like being able to say "yes" when my kids want to play rec soccer or go to sleep-away summer camp. In the end, my kids won't remember how large their bedrooms were, how many toys they had, or that they rode around in a twelve-year-old sedan, but for darn sure my daughter will remember me taking her to Chicago for a Mom & Daughter weekend to celebrate her school accomplishments. I'm able to do that, because we aren't over-subscribed to fixed costs. So, when my daughter asks why we don't live in a house as big as her best friend or have the same expensive electronic game systems, I tell her that we made the choice to spend our money on experiences, which she will carry with her forever, not on things. I have no regrets about that, and I suspect neither will she when all is said and done.

I know nothing about the OP's resources. For all I know, she may be sitting on a pot o' gold and a half-million dollar house is a perfectly reasonable purchase, but I would like to point out that buying in an expensive neighborhood is often the beginning of lifestyle creep. When your neighbor drives a G-Wagon, sends his kids to private school, and weekends in Breck, it's easy to feel that your Honda Accord, local public school, & camping vacation lack something. The fact that the OP is even asking if a six-figure income is low for that kind of neighborhood tells me that she knows this lifestyle creep is a possibility, and she's worried about it. From my perspective, she should be.

We are living in a time when financial security is questionable, no matter how large paychecks are at the moment. My husband's company laid off 5% of its workforce late last year, the first lay-off in the company's 25-year history. Very few people are truly safe, and if the worst happens, there aren't many safety nets available anymore. As 2B pointed out, houses at the half-million mark are notoriously difficult to sell, so if you buy one, you'd better make sure that you can truly afford it and that you plan to stay a l-o-n-g time.

That's my $.02. Take it as you will.

[Skypilot4808]

SeaGrace...

I moved to Castle Rock 3 years ago...I work downtown Denver. I commute every work day. I have not regretted my decision once. My commute to downtown (car, train and bus) is 65 minutes.

I will admit that I am frustrated with Castle Rock opting out of the RTD District. I have been riding from the Lincoln Station for a couple of years but am now required to pay $2/day to park there.

Somebody said "you don't know what you don't know." Well, that may be true, but they probably "don't know" just how wonderful an area Castle Rock really is. The town itself is quaint and enjoyable. There are many more ameneties than most people would think. I rarely have to drive up to County Line (Southern edge of Denver) unless I choose to. We have libraries, very nice dining, and good shopping. My neighbor says she is very happy with the schools.

Multi-million Dollar homes are primarily in Castle Pines Village (where I live). I live in one of the cheaper homes in the village ($900K) and recognize the reality that I am probably on the low end of the income scale here. It doesn't bother me. The Village is private (Gated) and settled into a forested series of ridges. I walk the lanes in the evening with my dog and visit with the neighbors like it was 50 years ago in a gentler time. There are some beautiful patio homes being built in the Village in the $600-$800K range as well. Most important, CPV has not suffered the depreciation in home value like other parts of Denver. I had a recent appraisal on my home and it has actually appreciated $120K since I purchased it in Oct 05. Also, the notion that these houses are in 30 month supply is nowhere close to truth. I just talked with a realtor who says we have 11% of these homes on the market (10% is average) and time on market is less than 180 days. Far shorter if priced correctly.

Don't let people scare you off who don't live in Castle Rock. Come on and join us.

[EscapeCalifornia]

Originally Posted by Skypilot4808

Multi-million Dollar homes are primarily in Castle Pines Village (where I live). I live in one of the cheaper homes in the village ($900K) . . . There are some beautiful patio homes being built in the Village in the $600-$800K range as well.

That's a lot of money for a house. Where does it come from? Is everyone there really that wealthy or did they call cash out of California in 2006?

[formercalifornian]

Wealth is wealth. I don't think it matters whether it results from a huge salary, successful investments, or a timely real estate sale.

[impala666]

Originally Posted by EscapeCalifornia

That's a lot of money for a house. Where does it come from? Is everyone there really that wealthy or did they call cash out of California in 2006?

90%+ of millionares are created by property involvement of some sort.
I`ve also looked at houses in Castle Pines if you can swap the beach for the ski slopes then you will be OK,there are plenty of very nice houses there.
It makes me smile when people complain about 25-30% drop in house prices remember the $$ is up around 30% from 2005 so all is fine.

[cecilia0909]

My dad is in Castle Rock and it's a great area. It was ranked last year as the best place to raise a family by parents magazine. You will not be looking at as poor. But it is kinda a drive to Denver

[the3Ds]

Originally Posted by seegrace

hi, new to the board--we are considering a move to castle rock area--a few questions for anyone that has insight on these specific questions:

-any information on timber trail elementary? from some comments on another website with school ratings, it seemed as if the school was great when it first opened, but is going downhill--is this true or just the thoughts of a few dissatisfied parents?
-also, i've noticed a lot of multi-million $ homes on the market in castle rock--if the house we have found is 550k and our income is approx. 125k a year, will we be the norm or looked at as poor? i just think it's nice to be around others that are in somewhat similar financial situations. any thoughts?

We have friends in Castle Rock and from my perspective, it is WAY out of the way (and we live out on this side of the city). I don't know if there is going to be a freeway built, but in order to get to their house, we've got to drive down Parker Road and it's a mess (stop lights, tons of traffic) when commuting during rush hour.

Douglas County School District is considered a good one, but their recent bond/levy bill failed and they are trying to figure out ways to cut back on expenses (at last check, they were considering a 4-day school week, combining junior high and high school students on the same bus, etc). We are in Cherry Creek SD and cannot say enough good things about it (plus our bond/levy passed).

As for looking "poor", I have to warn you not to get sucked in by things like that. Define "poor" when you make $125K and live in a $500K house? If you are moving to an area where you are constantly having to "keep up with the Joneses" you are setting yourself up for misery and superficiality. Do you really want friends and neighbors who are keeping score in their heads? There is always going to be someone with more money than you (or someone perfectly willing to put their family into debt to let people think they are "rich"). Buy a house that fits your needs (not one that your neighbors will be impressed with) and put your kids in clothes that fit (not just because they are "designer"). If moving to Castle Rock means that you are going to always be comparing your lifestyle to your neighbors, I'd suggest you get out of that area as soon as possible.

If Denver was full of crime and horrible schools and the only place to get away from that was Castle Rock, most of us would say that if you can afford it, you should move. However, there are a lot of places to live in the metro area that aren't nearly as far out, don't cost as much and will educate your kids just as well (or better). Just because you can afford a $500K house doesn't mean you should buy one. Find a house you love and put the extra money into your emergency fund or your kids college education fund. There is no amount of house that will make up for your feeling secure in your future.

We rented for a year before purchasing our house so we could pinpoint a place to live, but if I had money to buy a $500K house and I wanted to live on this side of the city, I would move to Centennial. Those who live in that area (specifically near an area called Tuscany or not too far from Grandview High School) have a higher income level, but it doesn't seem pretentious. Many friends from my mom's group are from that area and their homes are beautiful but not overwhelming. Plus, the area of Tuscany has a great community center/pool/tennis courts/playgrounds, etc, and most importantly, they are in the Cherry Creek School District.

[the3Ds]

Just one more input from someone who has lived all over, in both ultra-rich and low-to-middle income areas...

If you can afford a $550K house, go for it. But don't make a mistake like so many others who have moved from areas that are way overpriced so they have no actual perspective on what things should cost.

Get on a mortgage calculator and decide how much you can REALLY afford. Factor in homeowner's insurance, property taxes and your HOA fees. Remember that while bills can vary widely, you are likely going to use BOTH your air conditioning and your heater. After living in Florida and Arizona, the water bills is almost $50 more here than in those other states (and our yard is not large).

If you have recurring credit card debt, you cannot afford a $500K house, no matter what your lender or realtor says.

Do you have enough money left over after paying bills (including groceries, gas, kids activities, etc) for wiggle room? For example, we have approximately $800 left over each month after paying bills and investments.

Do you have money set aside for an emergency fund? What if you or your spouse loses their job? What if they are injured and can't work for months (or even a year or more)? If that happens and you have to move, how would you pay for the move and downtime in between paychecks? How about life insurance?

Your furnace, air conditioner, hot water heater, irrigation system is going to need maintenance (or outright replacement) at the worst time. Do you have money set aside for that?

How about setting aside money for Christmas so you can at least have one stress taken away (paying with cash or debit for all of your Christmas presents will give you a huge sigh of relief and let you enjoy the holidays without worrying about when the bills come due)?

How about a fund for vehicle maintenance? Car tires, oil changes, car registration (ours last year for a 2002 Accord and a 2007 Pilot was $500). Gas is inexpensive right now, but don't forget that it wasn't long ago where it hovered around $4 per gallon. Were you one of those who had to chose between eating out and paying for gas?

How do you pay for vacations? Set money aside for that because those (and not how many rooms your house has) is the memories of childhood that your kids will take with them.

Finally...kids. Their feet and bodies are going to grow. They will grow out of $100 Nikes just as fast as they grow out of Payless shoes, so if you are not prepared for buying clothes at least for each season, be prepared for the endless supply of clothes in a larger size. When they are in school, prepare for the school supply list (which in elementary school is around $50), backpacks, water bottles, coats, shoes, school pictures, class pictures, field trips, instrument rental, uniform purchases, after school clubs, etc, etc. Also, have you ever had to pay for an accidental broken tooth? Good lord...that was $650 (WITH insurance). Can't plan for things like that.

While it's fun to have a big house in a friendly neighborhood where wine and conversation flows like honey , it's absolutely priceless to live in an area and in a house that allows you to raise your family in a good school system but be secure in the knowledge that you are prepared for an emergency and would not be foreclosed on if you or your spouse loses their job. There is no amount of granite, built in bookshelves, community parks, finished basements or wine drinking neighbors that can make up for living paycheck to paycheck. My family chose to live in a middle class neighborhood where Hondas and minivans outnumber Lexus SUVs and Land Rovers. Where there are kids who have nice cars but the majority of the high school parking lot is filled with parent hand-me-downs. My kids will be judged on their personalities and not whether they have a Dooney and Burke purse. Maybe you can find that in Castle Rock (I don't have enough experience to speak about that city), but it makes most of us nervous when your question includes asking about being considered "poor" if you live in a half-million dollar house. If you are, then it's time to look elsewhere.

[formercalifornian]

Maybe you can find that in Castle Rock (I don't have enough experience to speak about that city)

You can absolutely find that in Castle Rock! In fact, neighborhoods in the $250k to $400k range far out-number those offering homes for a half-million and up.