U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Colorado > Denver
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-13-2017, 10:47 AM
 
3,273 posts, read 1,740,909 times
Reputation: 2458

Advertisements

Quote:
Originally Posted by illinoisphotographer View Post
I have no idea what you're talking about.

Denver's economy isn't highly based on oil, and if the price of oil drops, homes aren't going to drop in value.

There are over a hundred thousand new people to the area each year. There's no shortage of buyers for the limited housing stock we have. Will it keep increasing at 10%/year like the last 3-5 years? No. I'd bet it levels off in the next year or two. We're already seeing a lot of homes fall out of contract due to appraisal prices not coming in and sellers being greedy. But I can see the entry level houses being at the $340-350k mark and staying there.
I agree.
Rate this post positively Quick reply to this message

 
Old 04-13-2017, 10:48 AM
 
Location: Brighton, MI
136 posts, read 99,446 times
Reputation: 476
Just to chime in with an anecdote here, my wife and I bought a house last summer in Littleton for $330k. Our mortgage is about $1900 (we didnt make a large down payment).

We gross about $140k, and between the mortgage, my student loans, and our savings goals, we are tapped out every paycheck.

Main reason why we are considering moving.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 10:48 AM
 
3,273 posts, read 1,740,909 times
Reputation: 2458
Quote:
Originally Posted by Stevedore View Post
The "Oil Shock" your talking about wrecks California not Colorado. Public transportation/Rail is actually a viable option here as opposed to whatever LA is offering up these days.
An oil shock raises the price of almost everything that requires transportation.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 10:51 AM
 
Location: Denver
1,330 posts, read 538,279 times
Reputation: 1269
Quote:
Originally Posted by Jobster View Post
An oil shock raises the price of almost everything that requires transportation.
Sure, but that'd be nationwide, not just CO.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 11:00 AM
 
Location: Denver
1,330 posts, read 538,279 times
Reputation: 1269
Quote:
Originally Posted by MZMpac View Post
Just to chime in with an anecdote here, my wife and I bought a house last summer in Littleton for $330k. Our mortgage is about $1900 (we didnt make a large down payment).

We gross about $140k, and between the mortgage, my student loans, and our savings goals, we are tapped out every paycheck.

Main reason why we are considering moving.
Grossing $140k should put you in around $100k after taxes. $2k/month is $24k. Is moving elsewhere with a lower total CoL going to pay similar salaries to actually have a net increase and maintain the quality of life you currently have?

Not that I'm judging your financial situation, but it would seem like $100k/year net should be enough to cover a 2k house payment comfortably.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 11:06 AM
 
Location: Arvada, CO
13,707 posts, read 26,395,498 times
Reputation: 13867
Quote:
Originally Posted by MZMpac View Post
Just to chime in with an anecdote here, my wife and I bought a house last summer in Littleton for $330k. Our mortgage is about $1900 (we didnt make a large down payment).

We gross about $140k, and between the mortgage, my student loans, and our savings goals, we are tapped out every paycheck.

Main reason why we are considering moving.
Yeah, but will you still gross $140K somewhere else?

Do you have debt besides the student loans? I make about $25K less than you, my mortgage is only $250/mo cheaper than yours, my other monthly bills total $1150, and I am left with $5400/mo for savings/investments/food/necessities/entertainment/recreation/etc.

You should have $9800/mo left pretax after the mortgage.....?
__________________
Moderator for Los Angeles, The Inland Empire, and the Washington state forums.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 11:33 AM
 
Location: Brighton, MI
136 posts, read 99,446 times
Reputation: 476
Quote:
Originally Posted by illinoisphotographer View Post
Grossing $140k should put you in around $100k after taxes. $2k/month is $24k. Is moving elsewhere with a lower total CoL going to pay similar salaries to actually have a net increase and maintain the quality of life you currently have?

Not that I'm judging your financial situation, but it would seem like $100k/year net should be enough to cover a 2k house payment comfortably.

Quote:
Originally Posted by David Aguilar View Post
Yeah, but will you still gross $140K somewhere else?

Do you have debt besides the student loans? I make about $25K less than you, my mortgage is only $250/mo cheaper than yours, my other monthly bills total $1150, and I am left with $5400/mo for savings/investments/food/necessities/entertainment/recreation/etc.

You should have $9800/mo left pretax after the mortgage.....?

It is. We are not truly tapped out, but we do save about 30% of our income. And my student loans (medical) are huge. Yyoooge.

And yes, our salaries would be about the same or higher in most places. So to make the same pay and cut our cost of housing in half?? Even with more property?? It's tough to ignore that reality even though we like Colorado.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 12:33 PM
 
Location: Denver CO
23,283 posts, read 14,499,183 times
Reputation: 35924
Quote:
Originally Posted by MZMpac View Post
It is. We are not truly tapped out, but we do save about 30% of our income. And my student loans (medical) are huge. Yyoooge.

And yes, our salaries would be about the same or higher in most places. So to make the same pay and cut our cost of housing in half?? Even with more property?? It's tough to ignore that reality even though we like Colorado.
That's great that you are saving that much, but that's not a reasonable benchmark to say that someplace is unaffordable if saving almost 1/3 of your income leaves you without a lot of disposable income. But if Denver doesn't work for you, and you can earn the same in a lower COL area, then sure, you should move. For many people, a lower cost area means a lower salary.
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 12:57 PM
 
3,273 posts, read 1,740,909 times
Reputation: 2458
Wow, reading through this thread, there is some serious delusion going on. I think people don't understand how the economy works.

Interest rates are rising, the dollar is strengthening, and growth has slowed to a standstill.

What do you think will happen next? Liquidity injection? Perhaps. If not that, then what?
Rate this post positively Quick reply to this message
 
Old 04-13-2017, 01:16 PM
 
Location: Denver, CO
760 posts, read 686,888 times
Reputation: 1494
Quote:
Originally Posted by Stevedore View Post
The "Oil Shock" your talking about wrecks California not Colorado. Public transportation/Rail is actually a viable option here as opposed to whatever LA is offering up these days.
A wreck in California would probably be a somewhat of a wreck for Colorado as well. A lot of home price growth is due to strong buying power from coastal equity and investment. I'm not going to make an assumption that the majority of home buyers doing the bidding are from California...but Californians do make up about 40% of in migration (according to tax data from last year).

I also just read an article saying that 25% of commercial real estate purchases are by Californian investors.

We are also in the middle of a global housing bubble. Just read all the stories about 20%+ appreciation in London, Toronto, Vancouver, and other markets in Australia and New Zealand. If one of those markets pop, it's going to cause a chain reaction to all the other markets. All of the foreign investors that bought up all the luxury stock, only to leave it sit empty as a piggy bank, will probably decide to cash out over night.

Specifically in SF and LA, if all the Chinese buyers decide to sell at once, maybe due to an economic slow down in their home country, it would surge the inventory causing a correction. The second people see prices level off, many are going to panic and sell.

Again, I don't think we will have a crash like last time, but I do believe there are some major risk opportunities that get overlooked. There are too many on the "It's different this time" side of the discussion, without realizing that there is more than one way for a real estate market to correct/crash.
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Colorado > Denver
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top