What Would You Do - $600k Denver Budget (Highlands Ranch, Englewood: to rent, house)

[skanman7]

hey maybe denver,

also looking in the same general vicinity...but at a fractionally higher price. i ran into the same problem in castle rock..i.e...started to fall in love with houses that were just too expensive. i'm now looking at pradera...actually not far from castle rock...where there are some really nicely built homes by some highly regarded local builders. golf course membership is separate/distinct so it's not like other communities..where POA needs to support the course.

[Bideshi]

Keep in mind that you asked what I would do: I would buy a nice 3/2 for 150k and keep the 450k socked away earning income for me. The housing market is still headed down and it has a way to go yet. I'd rather have the extra income than the extra bling.

[2bindenver]

It's not going down in the under $200,000 market in the Denver metro area. Hasn't in nearly 2 years.

Thank you for your service, and keep safe.

[skanman7]

bideshi...

i agree re prices still going lower...but...buying at a deep discount (now) will insulate you from most of that last (IMHO) move downward. plus, good luck with your 450K in the bank earning 1% -- in a currency depreciating by 15% a year. if my math is right, you're earning -14% a year...yes? moral of the story -- if you want to prepare for worse times...real assets over financial assets.

[Bideshi]

Originally Posted by skanman7

bideshi...

good luck with your 450K in the bank earning 1% -- in a currency depreciating by 15% a year. if my math is right, you're earning -14% a year...yes? moral of the story -- if you want to prepare for worse times...real assets over financial assets.

Well, you sure got me there, if I was putting money in a passbook savings account at the local bank. I'm actually getting around 4% right now, which would bring an extra $1000 a month income after taxes (assuming 450k). Now if, as you assert, the dollar is depreciating at 15% a year, but property prices are stagnant and even dropping in dollar terms, then how fast are property prices actually going down? Rent is also going down BTW. Real assets? Wait until the broke state governments crank up the property taxes. Hmmm...

[formercalifornian]

Originally Posted by Bideshi

Well, you sure got me there, if I was putting money in a passbook savings account at the local bank. I'm actually getting around 4% right now, which would bring an extra $1000 a month income after taxes (assuming 450k). Now if, as you assert, the dollar is depreciating at 15% a year, but property prices are stagnant and even dropping in dollar terms, then how fast are property prices actually going down? Rent is also going down BTW. Real assets? Wait until the broke state governments crank up the property taxes. Hmmm...

Off-topic... How exactly do you think renting will insulate you if prop taxes go up? Landlords have to pay them, too, and guess where they're going to look for the money!

On-topic...If I were the OP, I'd look in Parker and Castle Rock. You should at least be able to find something semi-custom for that kind of money.

[2bindenver]

I found 19 at least 1/4 acre, in the suburbs.

[Scott5280]

[quote=2bindenver;12483928]It's not going down in the under $200,000 market in the Denver metro area. Hasn't in nearly 2 years.

A very true statement..without a doubt more than holding steady.

[amerifree]

Originally Posted by Bideshi

Real assets? Wait until the broke state governments crank up the property taxes. Hmmm...

Which is why we aren't interested in Castle Rock or Parker. Douglas County is the highest taxed in the state. To see property taxes triple in five years is not unreasonable to politicians. Average tax would then be around 10-12k a year. Coloardo Springs recently tried to triple taxes and a third of the votes were in favor of it. Scarey stuff.
Despite what the NAR and real estate agents are clamoring, "now" is not the best time to buy. Yes, you can name your price, but it will take more thumb-screw turning before sellers accept the reality that their precious homes with "million dollar views" aren't worth what they paid.
We've made 5 very reasonable high end offers in the past year and a half.
All five sellers demanded near asking price. Most came crawling back later when we were no longer interested.

[skanman7]

amerifree...

i agree with most of your commentary...especially at the high-end. those people are sitting ducks -- continuing to be basted and baked by county crooks and municipal madmen who want to soak the rich. likewise, i've looked at some higher-end homes and concluded it was imperative to stay under $1 million. while still vulnerable, i see value in the $600K - $800K range. quite candidly, i'm willing to stick my neck out -- especially if i deem a home to be selling for less than replacement cost.