Good luck if you are looking for a Denver rental (2013, apartments) - Colorado (CO) - Page 2 - City-Data Forum

davebarnes · 04-29-2013, 03:24 PM

Quote:

Originally Posted by SkyDog77

my house will sell for $550,000

In East Wash Park, that is a scraper.

SkyDog77 · 04-29-2013, 05:25 PM

Quote:

Originally Posted by davebarnes

In East Wash Park, that is a scraper.

That house is West Wash Park, but yeah, I paid $650 for my scrape in East Wash Park. 7900sq/ft lot.

JD401 · 04-29-2013, 07:09 PM

Quote:

Originally Posted by SkyDog77

I was just told by a very conservative realtor who does a lot of business in my neighborhood that my house will sell for $550,000 "all day". If you put 20% down and take out a $440,000 mortgage at 3.5% on a 30 year fixed, the P&I payment is $1,975. I estimate that my house will rent for $2500-$2700 when I move out later this summer.

If you did a 5 year ARM at 2.5%, the monthly payments go down to $1738 a month.

You will have to pay taxes and insurance, but you also get a mortgage interest deduction. It's all about having the 20% to put down and excellent credit. If you don't have those two things, it probably doesn't make as much sense.

You used a conservative estimate for the value of the house, but then assume every best case scenario you possibly could. Getting a rock bottom rate, having 20% to put down, avoiding pmi . . . And the mortgage interest deduction is not dollar for dollar savings.

But why make that comparison strictly looking at P&I, when insurance and taxes are required (which you noted, but omitted from $). On that kind of house, it would add at least another $300 a month. And if you didn't have the 20%, which most people don't (especially on a house that expensive), you're looking at another few hundred dollars for pmi each month. Getting back to my point of renting makes total sense when you can rent a nice, heart of downtown apartment or loft for ~1,400 or so. Granted, you're not gaining equity in anything, but the cost disparity is significant, not minimal, between your example and mine.

I don't really understand renting a house though (assuming the renter doesn't have the means or requirements for a purchase) outside of known short term stays, for that kind of money. But even when, why incur such a disproportionate cost, and still get no equity in return? Rent an apartment and save money, then look to buy.

dgfurman · 04-29-2013, 08:17 PM

I've been doing a lot of research online (planning on moving out next yr), and I've noticed that a mortgage payment would be MUCH less than a rental, of equivalent size/location. The problem is, of course, like it's been stated, coming up with all that cash for a down payment.

I'll be doing a lot of saving b/t now and then, and see what happens...

JD401 · 04-30-2013, 09:18 AM

Quote:

Originally Posted by dgfurman

I've been doing a lot of research online (planning on moving out next yr), and I've noticed that a mortgage payment would be MUCH less than a rental, of equivalent size/location. The problem is, of course, like it's been stated, coming up with all that cash for a down payment.

I'll be doing a lot of saving b/t now and then, and see what happens...

I don't think you'll find many 800-1000 sq ft houses.