Housing Decline (Highlands Ranch, Grand Junction, Castlewood: wood floors, rentals, HOA fees)

[.gif]

we put our 1 br condo on the market about a year and a half ago and got just one offer... which was last month. we were happy to sell it (at a loss), but unfortunately the buyer backed out and we are stuck with it again. we've since found a renter but we will be losing a little bit of money on it every month. we had to get out of that place though. it was too small for two people.

don't buy a condo. they are hard to sell.

[mes3fils]

Originally Posted by 2bindenver

You are right. All types of loans are being foreclosed on, but it is such a small percentage of the overall ownership. Small pockets will be affected more than others. Some areas will be relatively untouched.

Just like the 1980's only the Denver area has a much greater population and interest rates are a lot lower.

I don't think you'll see 15 pages of HUD owned homes like before. Too many investors looking for the next bargain.

The mortgage companies that are going to survive this housing mess, are preparing for a massive tightening/overhaul of their loan 'requirements'...this is going to make it tougher for all, even middle class ppl, to get loans. Forget about it if you're lower class and only have 5% down, you'll be outta luck.

Honestly, I can't see too many investors buying up homes to make a buck right now. Isn't it too risky? I sure wouldn't do it.

[Katiana]

Originally Posted by formercalifornian

I think more than five years is absolutely essential. I sold my last house after eighteen months, because a job didn't work out the way I had hoped. Fortunately, I had the equity to burn, but it didn't feel good. There are many reasons for me to sit this one out, not the least of which is that I'm still not sure Colorado is going to be my long-term home. No offense, but I think I prefer the coast, and I'm hoping to make my way back there someday soon.

We owned a house in Louisville for 5 1/2 yrs, 1982-1988. We sold it for a grand sum of $1500 more than we paid for it. By the time we paid the realtor and closing costs, we lost money on paper. However, we had the use of our home and a tax deduction at a time when some income was taxed at 50%. It is very hard to figure out just how much you have made/lost some times. We bought another house in 1989 when housing prices in metro Denver were still very low. We're sitting pretty good right now. Of course, if/when we go to sell, we'll have to replace it with another house that has appreciated in value, too!

[formercalifornian]

Originally Posted by pittnurse70

We owned a house in Louisville for 5 1/2 yrs, 1982-1988. We sold it for a grand sum of $1500 more than we paid for it. By the time we paid the realtor and closing costs, we lost money on paper. However, we had the use of our home and a tax deduction at a time when some income was taxed at 50%. It is very hard to figure out just how much you have made/lost some times. We bought another house in 1989 when housing prices in metro Denver were still very low. We're sitting pretty good right now. Of course, if/when we go to sell, we'll have to replace it with another house that has appreciated in value, too!

The longer the better, but even then, as you wrote, it doesn't always work out to an obvious financial advantage. Fortunately, owning a home has value beyond appreciation.

I'd like to point out, however, that although you're "sitting pretty good" your equity is illiquid until you sell the house, and that's difficult in the current market. Furthermore, you pointed out the additional problem of replacement, since other houses have also appreciated. The only way to come out ahead is to move to a less expensive location.

[CosmicWizard]

formercalifornian wrote: The only way to come out ahead is to move to a less expensive location.

If only the people who live in the less expensive areas would accept this fact, the California bashing would stop and this forum would be a more peaceful place, but I'm not holding my breath.

regards...Franco

[formercalifornian]

Originally Posted by NewAgeRedneck

If only the people who live in the less expensive areas would accept this fact, the California bashing would stop and this forum would be a more peaceful place.

That's the entire reason for the California bashing!

[Katiana]

Originally Posted by formercalifornian

The longer the better, but even then, as you wrote, it doesn't always work out to an obvious financial advantage. Fortunately, owning a home has value beyond appreciation.

I'd like to point out, however, that although you're "sitting pretty good" your equity is illiquid until you sell the house, and that's difficult in the current market. Furthermore, you pointed out the additional problem of replacement, since other houses have also appreciated. The only way to come out ahead is to move to a less expensive location.

I agree. You have to diversify your investments. The other way to come out ahead is to die and leave the house to your kids to live in or sell!

[GreasedLightning]

Originally Posted by .gif

we put our 1 br condo on the market about a year and a half ago and got just one offer... which was last month. we were happy to sell it (at a loss), but unfortunately the buyer backed out and we are stuck with it again. we've since found a renter but we will be losing a little bit of money on it every month. we had to get out of that place though. it was too small for two people.

don't buy a condo. they are hard to sell.

Where and what is it priced at?

[formercalifornian]

Originally Posted by pittnurse70

You have to diversify your investments.

A house is not an investment unless you are holding it as a rental property. It's not a good investment until it's making you a profit, and that doesn't mean harvesting "equity" through a HELOC. A house is essentially a savings account with the benefit that you get to live in it. Of course, if you've financed with an interest-only loan, it's not even that. You might as well be renting.

[.gif]

Originally Posted by GreasedLightning

Where and what is it priced at?

it's in the tech center. priced around $180k. 700-some odd square feet.