Is it for real? (House listings in the $100-$200K Range) (Denver: sales, real estate)

[roseba]

In my years of hanging out online, and meeting many people from across the country, I always thought it was very flippant when people would say something like this:

DH got a new job so we're relocating. We're looking for a new hours.... blah, blah.

They seem to talk about it as if they are painting their living room a new color. Very non-chalant, as if it is no big deal.

Maybe I'm wired a little differently. But where I live, you can't get the tiniest of houses in a sketchy neighborhood for less than $500K. So it's a SUPER BIG DEAL.

Anyway, I was looking at real estate listings in the Denver area, and I couldn't believe that one could pick up 3 bedroom fixer uppers in the low $100K range. I'm scratching my head and wondering, is there a catch? I look at the map and their not far from downtown Denver.

Granted, I'm not familiar with the area, what is a ghetto or not.

But the way I see things, if these listings are for real, my DH and I (with our daughter) will be able to be first time home buyers within a short period of time of moving to Denver. Right now, I'm paying $1200 a month in RENT, in a neighborhood that I'm not crazy about. (It's not a ghetto, but it offers very little in terms of "urban" amenities. I figure, if I'm paying that much money for a rental, I should be able to walk to everything... Such is the way NYC is... EXTREMELY expensive.)

Anyway, I'd totally be willing to live a little further out, in a not prime home (as far as being a fixer upper) if the area itself is decent (in term of safety.). Anything to get my foot into the door of home ownership. It's such a waste to rent and I imagine it's a great feeling of empowerment to own a home.

Now the real estate listings say that $100K house with a 30 year mortgage with no down payment is around $600 a month. (Again, to me this doesn't reflect any reality I've ever lived.) I was looking at Realtor.com

So what I'm seeing online, is any of this reality?

[Katiana]

So what I'm seeing online, is any of this reality?

I really don't know the answer to the specific question. I do know that houses under $200K are hard to find in the metro Denver area. (I'm talking SF houses here.) A fixer-upper will probably be in a nieghborhood with other like houses. Some will be fixed up, some will be in much need of fixing.

My guess is the $600/mo for a $100K mortgage does not include taxes and insurance, just principal and interest.

[roseba]

Originally Posted by pittnurse70

So what I'm seeing online, is any of this reality?

I really don't know the answer to the specific question. I do know that houses under $200K are hard to find in the metro Denver area. (I'm talking SF houses here.) A fixer-upper will probably be in a nieghborhood with other like houses. Some will be fixed up, some will be in much need of fixing.

My guess is the $600/mo for a $100K mortgage does not include taxes and insurance, just principal and interest.

I have no knowledge of taxes or insurance.

What do people general pay in that region?

I plan to buy a book or two about buying a house, and maintaining a house for first time buyers. I'm sure the knowledge instilled would help us when we are ready to make our move to home ownership.

[Katiana]

I have no knowledge of taxes or insurance.

What do people general pay in that region?

You know, for insurance, I'd have to look it up b/c it is included in our payment, and I haven't seen a bill lately. Property taxes are not high here, depend somewhat on the municipality. Property taxes on our house are about 1400/yr (a 2500sq ft home), $116/mo.

[EscapeCalifornia]

Originally Posted by pittnurse70

You know, for insurance, I'd have to look it up b/c it is included in our payment, and I haven't seen a bill lately. Property taxes are not high here, depend somewhat on the municipality. Property taxes on our house are about 1400/yr (a 2500sq ft home), $116/mo.

The taxes are even more amazing to me. I pay over 4x as much tax on half the house. And what do we get? 46th ranked schools in the country? And yet they keep telling us we're not paying enough tax. Of course, this is in addition to a highly progressive state income tax that gets into the 8-9% range very quickly and a sales tax that runs from 7-9% statewide, depending on the county.

[Katiana]

Sales taxes are high in Colorado, too. Each municipality has its own tax, and there are some special sales tax districts. Ex: state sales tax, county sales tax, city sales tax, Regional Transportation District sales tax (metro Denver), football stadium sales tax (ditto), baseball stadium sales tax (ditto, ditto), Scientific and Cultural Facilities sales tax (ditto, ditto, ditto) [for Denver Zoo, Art Museum, Colo. History Museum, Denver Botanic Gardens, and for arts in the burbs]. Louisville, where I live has a total of about 8+% sales tax.

[roseba]

Originally Posted by pittnurse70

Sales taxes are high in Colorado, too. Each municipality has its own tax, and there are some special sales tax districts. Ex: state sales tax, county sales tax, city sales tax, Regional Transportation District sales tax (metro Denver), football stadium sales tax (ditto), baseball stadium sales tax (ditto, ditto), Scientific and Cultural Facilities sales tax (ditto, ditto, ditto) [for Denver Zoo, Art Museum, Colo. History Museum, Denver Botanic Gardens, and for arts in the burbs]. Louisville, where I live has a total of about 8+% sales tax.

That may seem a lot, but from a NYC perspective, where we have 8.65% sales tax, property tax and every other tax up the yin yang..... it is no big deal.

[OutOfSoCal]

rose, I agree it is hard to believe BUT things are alot cheaper in most other pa,ces than where we both come from. keep in mind what might be considered a ghetto in Colorado is nothing compared to a ghetto in So Cal or NY areas, same goes for traffic. While its bad for Colorado its not really that bad when you come from So Cal or some areas of NY,Atl or FLA.
We were out in CO a few weeks ago and saw new townhome for 120K in decent areas less than 20 minutes from downtown Denver.

Good Luck

[roseba]

Originally Posted by OutOfSoCal

rose, I agree it is hard to believe BUT things are alot cheaper in most other pa,ces than where we both come from. keep in mind what might be considered a ghetto in Colorado is nothing compared to a ghetto in So Cal or NY areas, same goes for traffic. While its bad for Colorado its not really that bad when you come from So Cal or some areas of NY,Atl or FLA.
We were out in CO a few weeks ago and saw new townhome for 120K in decent areas less than 20 minutes from downtown Denver.

Good Luck

Interesting. I could assume that "ghettos" in Denver, are probably the undesirable, but safe neighborhoods in NYC. (like the one I live in.)

Eventually, I would want to upscale it a little more, but starting out, with little to no down payment (thanks to killing myself paying rent in NYC), it might be the 1st step for home ownership. The 2nd step, selling and upgrading several years later.

[Wyomiles]

roseba, Things are different here than what you are used to. Yes there are some areas that you would not want to live but there are some really nice areas with good home prices. Right now in the Denver area there are a lot of forclosures so there are some good deals. There are several areas outside of downtown where housing is cheaper than you are used to. Keep looking and asking questions about specific areas that you are wondering about.