need advice on buying first home near denver (Fort Collins, Wellington: real estate, apartments)

[shane1]

hi guys and gals, my fiance and i are moving to the denver area in a month and we are looking to buy a new home once we get out there. only problem is, im not familiar with the area and really dont know to much about real estate investing. We are a young couple looking for a good starter home under 200,000. We just want to know that in spending that little amount of money, we are moving to a good neighborhood that we will not see a drop in our investment over time. I am curious as to what areas outside of denver and around are up and comming. In a few years we will sell our investment and buy a bigger home for a family so I really need some advice from you intelligent and well established elders. lol thanks so much

[gpraceman]

If you don't know the area, it is best to find a place to rent first. Then take your time looking around at different areas. If you try to find a house right off the bat, you may end up settling for a house or part of town that you will later regret.

[Tom Emmerling]

The homes are out there. I found a three bedroom, 2 bath, newer construction, two car garage in Wellington (north of Fort Collins) for 150,000 a couple weeks ago. There are a lot of foreclosures and if you are patient you will find the right one. If you are looking at resell down the line, I would stay away from modular homes, apartments, and even town homes. It would be better to get a house that you had to put a little elbow grease into if you want to possibly make some money down the line, rather than buying one of these. Will you be working in Denver?

[shane1]

dont know where ill be working yet. i wont have an issue finding a job i dont think. i hope

[Charles]

Originally Posted by shane1

hi guys and gals, my fiance and i are moving to the denver area in a month and we are looking to buy a new home once we get out there. only problem is, im not familiar with the area and really dont know to much about real estate investing. We are a young couple looking for a good starter home under 200,000. We just want to know that in spending that little amount of money, we are moving to a good neighborhood that we will not see a drop in our investment over time. I am curious as to what areas outside of denver and around are up and comming. In a few years we will sell our investment and buy a bigger home for a family so I really need some advice from you intelligent and well established elders. lol thanks so much

"only problem is,...."

You are moving in a month? What is the result of your research? What places are you considering? If your initial home purchase suffers a 20% loss in three years after you buy it will you still buy a bigger home for your family?

Where will you be working?

My crystal ball has dead batteries so I can't comment on if your house investment will drop in time.

I agree with an earlier post. Consider renting until you have done your homework. Better yet, do your homework first.

[2bindenver]

No one can predict the future. We may be in the midst of a terrific sellers market - and we may not.

Begin with the end in mind. If you do decide to buy - look at the location - area, community, subdivision, lot - make sure you have a great buyer's agent on your side, with good knowledge of first time homebuyer programs, and is willing to hand hold you through your first transaction.

There are plenty of houses on the market to choose from.

Are you handy? Do you like to tinker with things? or do you prefer something turn key? (ready to move into)

[gpraceman]

Originally Posted by 2bindenver

We may be in the midst of a terrific sellers market - and we may not.

Sellers market?

[2bindenver]

Originally Posted by gpraceman

Sellers market?

Sure Anything is possible.

Actually, once the fed decides that they will increase FHA loan limits, and or buy more mortgages above the FHA limits (probably Freddie Mac) investors on wall street will start buying again and our normal market will return.

I have has 3 deals fail to close in the last two months due to financing. 2 have since closed with other lenders. One was a 5% down and we went to FHA and 3% down...the other was 10% down - we switched to a 20% down...the one we could not get done was a jumbo loan at 8.5% - but the seller said let's do a lease purchase until rates are more reasonable (ie under 7.5%) in the future.

Denver has been generally stable since 2001, so if a seven year cycle is realized, we should start getting hotter...ok at least warmer...in 2008...depending on the loan shakeout.