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 05-02-2017, 04:52 PM
 
Location: Denver
1,330 posts, read 538,599 times
Reputation: 1269

Advertisements

Quote:
Originally Posted by hikernut View Post
A reasonable rule of thumb from Bill Bernstein is to pay no more than 180 months' rent for a property. I haven't seen him describe how he arrived at that ratio, but I've read a lot of his writing over the years and have found him to be a sound thinker. Of course that's if you want to view it in purely financial terms.
The biggest issue with that thought process is that most people aren't going to buy a condo (unless you're downtown or in a large city like NYC, Chicago LA etc). Most people who rent are renting apartments and when buying will look to purchase a single family home. That comes with the thought process that you're getting a place that will help your family grow/expand etc.

$1400x180 for a 2br apartment is a lot different than if you were renting a $2200 3br home for that calculation.

In addition, taxes can be a huge difference. If we were back in IL and buying, our max budget would have been $275k rather than $365k out here -- there's a $6k/year difference in our taxes. That's why you need to look at your total mortgage payment (including insurance, HOA, taxes) to have a fair comparison.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-02-2017, 04:56 PM
 
Location: In The Thin Air
12,572 posts, read 9,078,189 times
Reputation: 9226
Quote:
Originally Posted by illinoisphotographer View Post
The biggest issue with that thought process is that most people aren't going to buy a condo (unless you're downtown or in a large city like NYC, Chicago LA etc). Most people who rent are renting apartments and when buying will look to purchase a single family home. That comes with the thought process that you're getting a place that will help your family grow/expand etc.

$1400x180 for a 2br apartment is a lot different than if you were renting a $2200 3br home for that calculation.

In addition, taxes can be a huge difference. If we were back in IL and buying, our max budget would have been $275k rather than $365k out here -- there's a $6k/year difference in our taxes. That's why you need to look at your total mortgage payment (including insurance, HOA, taxes) to have a fair comparison.
Add in utilities to that also.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-02-2017, 05:17 PM
Status: "Comfortably numb" (set 29 days ago)
 
Location: Victory Mansions, Airstrip One
4,397 posts, read 2,719,601 times
Reputation: 5026
Quote:
Originally Posted by illinoisphotographer View Post
The biggest issue with that thought process is that most people aren't going to buy a condo (unless you're downtown or in a large city like NYC, Chicago LA etc). Most people who rent are renting apartments and when buying will look to purchase a single family home. That comes with the thought process that you're getting a place that will help your family grow/expand etc.

$1400x180 for a 2br apartment is a lot different than if you were renting a $2200 3br home for that calculation.

In addition, taxes can be a huge difference. If we were back in IL and buying, our max budget would have been $275k rather than $365k out here -- there's a $6k/year difference in our taxes. That's why you need to look at your total mortgage payment (including insurance, HOA, taxes) to have a fair comparison.

True, it's only a rule of thumb. The NYT had a really detailed calculator online, and I think it may still be available. The problem with these, however, is that one can change the outcome completely with different appreciation assumptions. Trying to guess appreciation over five or even ten years is a crapshoot.


Everyone views this tradeoff in the context of thier own experience. I've certainly not had terrible experineces as a homeowner, but if I'd put my $$ into stocks instead of into houses I would be better off financially today. No regrets. I intend to live in a house that I own as long as I can take care of it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-02-2017, 09:28 PM
 
Location: Denver CO
23,283 posts, read 14,506,664 times
Reputation: 35925
Quote:
Originally Posted by Timmyy View Post
Add in utilities to that also.
I didn't pay for water as a renter but I paid all of the other utilities, so I don't see this as a significant added expense of owning.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-03-2017, 08:48 AM
 
Location: In The Thin Air
12,572 posts, read 9,078,189 times
Reputation: 9226
Quote:
Originally Posted by emm74 View Post
I didn't pay for water as a renter but I paid all of the other utilities, so I don't see this as a significant added expense of owning.
I do see it as significant. The bigger the house the more you will lose unless you are extremely conservative. I will be looking into solar soon.

There are quite a few people that go from a renting situation to owning a home that don't take that into consideration and they have a bit of sticker shock when they get their first water and Xcel bills.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-28-2018, 09:31 AM
 
23,052 posts, read 42,190,230 times
Reputation: 23499
Time to update this thread, with what you may be seeing out there in the Denver market. Comments?
__________________
- Please follow our TOS.
- Any Questions about City-Data? See the FAQ list.
- Want some detailed instructions on using the site? See The Guide for plain english explanation.
- Realtors are welcome here but do see our Realtor Advice to avoid infractions.
- Thank you and enjoy City-Data.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-28-2018, 09:49 AM
 
Location: Denver, CO
760 posts, read 687,152 times
Reputation: 1494
I've personally see listings really slow down this past month. But I guess that is expected this time of year.

Compared to years past though, the market seems to be a ghost town right now. I went to an open house for a 385k home in Sunny Side this past weekend, and was the only person to show up. The seller hadn't received any offers, and they were quickly trying to sell in order to take a new job out of state. I didn't put in an offer because I personally thought the home wasn't worth anything more than 300k.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-29-2018, 03:13 PM
 
Location: Just south of Denver since 1989
11,485 posts, read 31,087,829 times
Reputation: 8109
It’s the season. In July, Days on Market was 11 before a contract was accepted. In October, it was 22.

A sellers market will remain until we have 90 day or less of inventory.

Showings per listing in July was 59 and showings per listing in October was 38.

Sellers that are willing to accept asking price or less offers are greater now then next February.

CHFA has also increased its max income limits.

FHA will also increase its loan limits next year along the front range.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-29-2018, 03:17 PM
 
Location: denver, co
105 posts, read 142,019 times
Reputation: 195
Real talk – a house in our neighborhood (University) came up for sale in September that we were interested in. It’s a little bigger than our house and in a different school district, but not markedly different from our current place. The new one needs a fair amount of updating, while ours needs none. We put in an offer in late September which was accepted with a contingency on the sale of our place within two weeks.

We put our house on the market and had 20+ showings with good feedback, but nobody pulled the trigger on making a formal offer.

Our agent initially priced it a bit too high and after cutting the price by a bit, we had an offer at the end of our two week contingency. Those buyers backed out at the last minute, my guess is that they didn’t realize that buying a 1930’s house meant that there were materials in the house that were manufactured prior to 2010 .

We were about to pull our house off the market after that debacle when we heard that the seller of the house we were looking at *really* wants to sell it to us. We decided that we’re happy to keep ours on the market, they can keep theirs on the market, and our agents are staying in touch with each other. We’ll see who sells theirs first. We’re still getting regular showing requests and have had a couple other buyers come close and then change their minds.

We’re fine if our place doesn’t sell, and we don’t have interest in moving out of our neighborhood since we like our location and neighbors.

All that said, as I walk the dog through the neighborhood these past couple months, there’s not a lot of houses that are selling. I recognize that it’s typically a slow time of year and interest rates are starting to creep up, but the houses I see for sale are staying up for a lot longer than they used to, and my Zillow feed is showing a lot of price cuts. Whether this is seasonal or something bigger, who can say?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-29-2018, 04:44 PM
 
Location: Phoenix, AZ
2,653 posts, read 2,271,046 times
Reputation: 2819
On Nov. 5, Denver Post reports Denver's housing market is "stagnant".
Rate this post positively Reply With Quote 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.


Reply
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