Moving to Boulder for 3 years... rent or purchase? (Denver, Louisville: real estate, 2014)

[anomeric]

Hi all,

We're moving to Boulder for a job later this year, but will likely only remain in the area for about three years. We currently own a home, and it's been recently completely updated to everything that we love in a house. To maintain a similar standard of living in an apartment in Boulder, we're looking at rent in the $2000 - $2500 a month range, which is kind of insane.

We have the ability to purchase a modest home/condo in Boulder, and could potentially spend up to $450,000. I know that doesn't go very far in Boulder, but it seems like we could obtain a pretty decent place. I normally would not consider purchasing in a city that I'm only going to be in for three years, but from what I've heard, it seems like Boulder is a pretty safe place to invest.

We're still in the planning phase, and haven't talked to real estate agents yet (although if anyone has any recommendations, that would be great), and we're unsure if we'll actually go forward with any of this. The idea of paying $90,000 in rent in three years, though, seems necessary. My partner isn't really interested in living outside of Boulder, so renting for cheaper in a different community is likely not an option.

So I guess a few questions:

1. In your opinion, assuming purchasing is possible, would purchasing be recommended over renting in Boulder, even though we'll only be there for a few years?

2. Did Boulder do well during the housing market crash a few years ago?

3. Is Boulder really considered such a safe real estate investment?

Any other advice would be appreciated. Thanks!

[davebarnes]

1. No
2. Yes
3. Maybe

This should be your main concern.
Selling is expensive. The transaction cost is between 7% and 10%. With 10% more likely.

If you really want to buy, then zurf to Zillow and use the price filter. There are only 9 houses available between $400-450K.

The housing market in greater Denver (which sometimes includes Boulder) is extremely tight.

Inventory is at a record low.

[Hipchik]

I agree with Dave's comments. There are not many homes available in your price range. If you have the perfect house now, it is doubtful that you will find something as perfect in Boulder for $450,000. If I were to move back for only 3 years, I'd rent.
That said, Boulder is a safe real estate investment. Our friends bought a home near downtown in the 90s for $155,000. They sold it for $325,000 7 years later. It sold for $640,000 in 2010 - the asking price was $650,000. It is a small house with a tiny yard on a busy street in central Boulder (but it's very cute!).

[jaekn]

My partner isn't really interested in living outside of Boulder, so renting for cheaper in a different community is likely not an option.

Then I suppose you must have spent a ton of time staying in Boulder? Otherwise, I would seriously reassess this limitation. Boulder is getting worse and worse in terms of congestion and the number of elitist kids and childlike adults. Much rather try and build in Louisville or similar.

[anomeric]

Thank you guys for the help so far.

I suppose I didn't take into account the transaction costs, which would certainly diminish the investment after only having the place for a few years. We had found some brand new condos at the 500K price point that we were pretty excited about, but hadn't thought it through carefully yet. We were also thinking of keeping it as an investment property... perhaps renting it once we move.

I also misunderstood my partner. He was only interested in purchasing in Boulder (since it's a safe investment), but is open to renting elsewhere, so perhaps we will look into renting outside of Boulder. The biggest issue I have with Boulder and the surrounding communities is the really awful public transportation (I'm honestly dumbfounded by how weirdly the bus routes are laid out). I currently live in a city where it's 15 minute commute via public transportation to work. The idea of having to drive 30 - 45 minutes into Boulder to go to work is really unappealing, but I guess that's small town living for you. The more I've looked into the bus system in Boulder, the more I've realized that even living in Boulder does not guarantee adequate public transportation. It seems like driving is inevitable there, unless you happen to live and work on the same street that one of the 5 routes goes down, so perhaps looking into one of the other communities closer to Denver might not be a bad idea.

[Hipchik]

Originally Posted by anomeric

The idea of having to drive 30 - 45 minutes into Boulder to go to work is really unappealing, but I guess that's small town living for you. The more I've looked into the bus system in Boulder, the more I've realized that even living in Boulder does not guarantee adequate public transportation. It seems like driving is inevitable there, unless you happen to live and work on the same street that one of the 5 routes goes down, so perhaps looking into one of the other communities closer to Denver might not be a bad idea.

I haven't lived in Boulder for several years, but I found it very walkable and easy to get around without a car. When I lived there I hardly ever drove mine. I think the bus system there is pretty great. Seems as though you don't understand the RTD routes and bus lines. https://bouldercolorado.gov/goboulde...-and-schedules

[anomeric]

Originally Posted by Hipchik

I haven't lived in Boulder for several years, but I found it very walkable and easy to get around without a car. When I lived there I hardly ever drove mine. I think the bus system there is pretty great. Seems as though you don't understand the RTD routes and bus lines. https://bouldercolorado.gov/goboulde...-and-schedules

Yeah, it might be the location of my work too. It seems to kinda be in the middle of no where. From the areas in northern Boulder to work require 3 transfers and an hour and 15 minutes to get there! Haha, oh well.

[Hipchik]

Originally Posted by anomeric

Yeah, it might be the location of my work too. It seems to kinda be in the middle of no where. From the areas in northern Boulder to work require 3 transfers and an hour and 15 minutes to get there! Haha, oh well.

That's too bad. I thought you were talking about living and working in the city itself.
Well, best of luck to you!

[davebarnes]

Work addresses?
Cross streets are OK.

[jaekn]

Originally Posted by anomeric

It seems like driving is inevitable there, unless you happen to live and work on the same street that one of the 5 routes goes down, so perhaps looking into one of the other communities closer to Denver might not be a bad idea.

Of the mountain of problems I currently have with living in Boulder, transportation was never on my list! I used to walk, literally, across boulder proper routinely. The bus is easy to jump on and off of between routes.