Best place to live & invest? (Denver, Littleton: for sale, real estate, rental) - Colorado (CO) - City-Data Forum

nancyw0812 · 02-19-2007, 11:01 AM

This forum is a wonderful source of information and I want to thank all of you Denver-area residents who are so generous with your time to answer the unending questions form all of your prospective new neighbors (who will eventually be further clogging up the roads)!

My question is a bit different (I think) from many I have seen. My family's move (this summer) may not be a permanent one and we are looking at living in Denver for three years – but it could be longer. I have looked at renting and interestingly it seems quite expensive (i.e. almost double) compared to the SF Bay area - $3000/mo might rent you a $1 million house here where in Denver that would get you a $500K house. So we are looking at buying. I think that Parker, Centennial and Littleton all look great (my husband's work will be in the Tech Center) but how have home prices held up? Based on wanting to have a decent investment gain on property over three years (or at least no loss) where would be the best place to buy? (This is a corporate relocation so transaction fees won’t be an issue.)

Thank you!

2bindenver · 02-19-2007, 11:23 AM

The market has been seeing small appreciation increases over the last 6 years.

I'll write more later, but begin with the end in mind. Meaning buy something with the idea that you will be selling in 3 years. You will do more than fine.

2bindenver · 02-19-2007, 04:25 PM

I work with relocation buyers often. Usually those folks transferring in, also get transferred out at some point.

So with that thought in mind we (me & buyers) discuss strategy. Since I am not *your* broker, feel free to discuss offline with your buying partner, if any.

First option is to buyer new or newer, given that the builder will help run up appreciation for you. Functional obsolescence usually not a factor. Buy at least average for the area, but not the most expensive thing out there. If the builder has many lots, or it is a brand new subdivision, be aware that you may be selling, where they are, and they have way more money to throw at buyers than you do.

Second option is buy something that needs a little TLC, but not a lot. Finish the basement, kitchen, flooring and in three years or so, you have a nice little profitable property. Look for a property that backs to open space, or on a cul de sac, not on a corner, or backs/sides to a street, or the train.

Buying smart, means when the time comes, selling smart.

masalamomma · 02-19-2007, 10:13 PM

I am not sure where you are getting your rental info, but I rented a house in Parker in Stonegate - a nice three bedroom with finished basement for $1450/month. That house would likely sell for in the mid 300's if it was for sale.

If I was only going to live here in Denver for 3 years, I would not buy a home. I would rent.

BenWolfe · 02-20-2007, 07:46 AM

Quote:

Originally Posted by masalamomma

If I was only going to live here in Denver for 3 years, I would not buy a home. I would rent.

I would have to disagree. If you buy the right property in the right area at the right price you will be much better off buying compared to renting. If you rent a house for $2000 per month for 3 year you will pay $72,000 in rent with nothing to show for it. I have one client who bought a house in Larkspur for $365k and when he was relocated one year later we sold it for $405k. I have another client who purchased their Larkspur house for $480k two years ago and it is now on the market for $650k and it has been very well received by the market and should sell quickly. We purchased our house for $405k four years ago and it is now worth $675k.

The key is to buy the house right, work with a top notch real estate agent who specializes in the neighborhood and if you are going to make any improvements to the property choose the improvements that generate a good return.

masalamomma · 02-20-2007, 11:29 AM

This guy's an agent, so I guess you should listen to him. But a word of warning.... A good friend of ours bought a 1.4 million dollar house in a very prominent area, and has not been able to sell it for the last 5 years.

If you do buy a house, I wouldn't spend more than $400k without being VERY careful, or you could find yourself stuck with it after 3 years.

BenWolfe · 02-20-2007, 09:09 PM

Quote:

Originally Posted by masalamomma

This guy's an agent, so I guess you should listen to him. But a word of warning.... A good friend of ours bought a 1.4 million dollar house in a very prominent area, and has not been able to sell it for the last 5 years.

If you do buy a house, I wouldn't spend more than $400k without being VERY careful, or you could find yourself stuck with it after 3 years.

I completely agree with you on this point. The $1mil plus market is flat in most areas. Don't buy the most expensive house in the neighborhood and only buy a house in a neighborhood that has shown sustained growth over the past 2 or 3 years.

I wouldn't spend more than $400k in most neighborhoods, but I would set the cap as high as $750k in some other areas.

nancyw0812 · 02-22-2007, 10:17 PM

This is great information - thanks. As it turns out the max we were looking at spending was about $750K. I understand the concept of not buying the most expensive house in an area as well as being cognizant of buying in an area with lots of new construction going on. That said, what are those areas that $750K would buy a nice house as well as represent a decent (doen't have to be outstanding) investment. Naturally, schools are important and a personal preference is for a larger lot, not a tract home and a reaasonable commute to the Tech Center.

2bindenver · 02-22-2007, 10:54 PM

There are several areas that come to mind - under $600,000.

How large is large?

What is reasonable for a commute?

BenWolfe · 02-23-2007, 08:27 AM

Quote:

Originally Posted by nancyw0812

This is great information - thanks. As it turns out the max we were looking at spending was about $750K. I understand the concept of not buying the most expensive house in an area as well as being cognizant of buying in an area with lots of new construction going on. That said, what are those areas that $750K would buy a nice house as well as represent a decent (doen't have to be outstanding) investment. Naturally, schools are important and a personal preference is for a larger lot, not a tract home and a reaasonable commute to the Tech Center.

My favorite area would be the Perry Park Area (Perry Park, Perry Park East, Sage Port or Sterling Pointe) in Larkspur. Home site are between 1 and 5 acres depending on neighborhood, the entire area is heavily wooded, and it is only 20 - 35 minutes from the tech center. You will have numerous nice homes to choose from in the $500k - $750k range.

If you would like to tell me more specifically what you are looking for I may be able to suggest other areas also.