How do you guys afford to live in Denver? (for sale, apartment)

[Pesare]

I think it all depends on how much priority people put on putting their money towards housing. One of my friends and his wife just bought a house for $600,000 in a great area and they share an old honda accord between them. You would think that they would drive a much better car. Therefore, I think people cut out other expenses like car payments, and even eating out to be able to afford housing.

[rumline]

Originally Posted by Gamecock2001

Rent and insurance is about 20% of our monthly income this way.

Originally Posted by Chloe333

We spend about 16% of our after tax monthly income on rent in a nice suburban area with good schools. Our place is nice but a little on the small side, but we've gotten used to it now.

Originally Posted by step33

We spend about 20% on housing.

I don't know how you guys can spend only 20% of your after-tax money on housing. Are you all in 2bd apartments and making >$100k per year? Or $75k and live in a 1 bedroom?

[randomparent]

People beyond their twenties also frequent this board. Some of us have lived here for many years, while others have relocated with considerable equity from prior property sales. My spouse and I own our house outright. Our total housing expenses (property tax, insurance, and HOA fees) amounts to ~3% of our annual income.

[headingtoDenver]

Originally Posted by rumline

I don't know how you guys can spend only 20% of your after-tax money on housing. Are you all in 2bd apartments and making >$100k per year? Or $75k and live in a 1 bedroom?

Good salary, savings which was put into the downpayment of the home, and the purchase of a modest house. Plenty of houses can be had for well under 300K.

300K home with normal 20% down at a regular interest rate will be about 1500 a month after insurance and taxes. You make just over 100K a year and this is VERY doable.

[eatsDEN]

^Bingo


our household does about 13% of MAGI in housing expenditure (mortgage, ins, taxes, HOA)

(MAGI = modified AGI)

[DenverBound41]

Originally Posted by headingtoDenver

Good salary, savings which was put into the downpayment of the home, and the purchase of a modest house. Plenty of houses can be had for well under 300K.

300K home with normal 20% down at a regular interest rate will be about 1500 a month after insurance and taxes. You make just over 100K a year and this is VERY doable.

Eh, $1,500 at 20% of after-tax is $7,500 ($90,000 annually). After taxes, retirement, health insurance, etc...that requires making quite a bit more than a $100k/year salary.

[rumline]

Originally Posted by randomparent

My spouse and I own our house outright. Our total housing expenses (property tax, insurance, and HOA fees) amounts to ~3% of our annual income.

For some reason, I don't think you are the demographic OP was seeking input from. If OP had "considerable equity from prior property sales" I doubt he/she'd be asking the question either.

Originally Posted by headingtoDenver

Good salary, savings which was put into the downpayment of the home, and the purchase of a modest house. Plenty of houses can be had for well under 300K.

300K home with normal 20% down at a regular interest rate will be about 1500 a month after insurance and taxes. You make just over 100K a year and this is VERY doable.

Sure, no problem in that case. Too bad the median household income for Denver metro area is $62k.

[randomparent]

He asked how people can afford to live here without any further qualifications. My answer is just as legitimate as the others.

[ayoitzrimz]

Originally Posted by randomparent

He asked how people can afford to live here without any further qualifications. My answer is just as legitimate as the others.

And why wouldn't it be legitimate? You answered the question directly, made no generalizations and just talked about your scenario. The OP wants to know, and he/she should know that some people have been moving up in the RE market and building equity for years and can afford a place using previous equity.

Not us, we are first time homeowners, but we make a lot of money and have no children and no CC debt. Student loans we do have. For us, we can afford it because we make a lot of money. It's just as legitimate an answer as others.

[rumline]

Originally Posted by ayoitzrimz

The OP wants to know, and he/she should know that some people have been moving up in the RE market and building equity for years and can afford a place using previous equity.

Oh, well in that case we should also let the OP know that the independently wealthy can also afford Denver no problem, just in case he hadn't thought of that one. Any other classes of people who can obviously afford to live pretty much anywhere in the country?