If you have ever visited Boulder, there is a good chance you have considered moving here. If you already live here, you probably want to stay.

The nearby mountains; Pearl Street Mall; world-class restaurants; a casual, yet sophisticated lifestyle; outdoor recreation; and many historic sites make Boulder County almost irresistible.

Don't worry, you are far from alone, which may leave you very frustrated –– especially if you dream about owning a home.

Boulder is like many special places where "desireable" means "expensive."  Home prices in particular often shock dreamers back to "reality."

But, if  a Boulder homeownership dream cloud keeps reappearing above your head, maybe it is time to do some serious thinking.  Though your budget may not accommodate that wonderful late 19th century Victorian on Mapleton Ave., some good options do exist.

Here are six good options:

•  Purchase a Condo or Townhouse

Yes, these "attached dwellings" may raise concerns for people used to living in houses with yards.  Neighbors are closer and green space is shared.  But many such developments put you and your family close the places you like to visit.  Some are near shopping, others exist by open space and  a number have been built by the University of Colorado. Homeowners association fees can be an additional expense, but utilities usually will be lower.  And you won't have to mow the lawn and trim the hedges. With prices for good-sized two-bedroom condos starting under $150,000 and three bedroom dwellings starting a little higher, condos and townhomes will at least get you started with home ownership in "The Republic of Boulder" and nearby.

•  Buy a Home Near Boulder instead of In Boulder

Home prices drop fairly quickly as you move away from the Boulder City limits.  Interestingly, Gunbarrel, an area that stradles the Boulder City/Boulder County line, includes homes that are quite competitively priced when compared to similar homes in the main part of Boulder City.  And prices in some other nearby locations trend considerably lower than prices in Boulder City. During the 12 months ending Oct. 31, 2009, Boulder's median home price (not including condos) was $535,000. Compare this to medians of $219,000 in Longmont, $307,000 in Lafayette, $312,000 in Erie, $359,000 in Louisville, and $372,500 in Superior. These figures come from the Boulder Area Realtors® Association and the IRES Multiple Listing Service.

•  Get Out the Toolbox and Fix it Up

You will rarely find a house for less than $300,000 in Boulder.  But, if you can afford the price of entry and have the perseverance to see a major project through to completion, this can be a viable option.  You will need some skills with tools and you probably should spend time talking to the experts down at McGuckins Hardware (east of Folsum St. between Arapahoe Ave. and Canyon Blvd.) These guys really know their products and can help you a lot. With proper planning, you can turn a "low-priced" home into a gem. One important note:  if you plan to fix it and sell it, talk to an expert before you start.  Major improvements generally do not pay for themselves at resale. The people who make money on these kinds of projects know how to control costs.

•  Look into Financing Alternatives

With all the talk about conventional mortgage rates falling to the neighborhood of five percent, it may surprise you to learn that well-qualified borrowers can get loans at four percent or even a bit less.  Such percentages significantly reduce monthly house payments, possibly making a more expensive home affordable for you. Is there a catch? You betcha!  But it may not be a problem for you. These are adjustable rate mortgages (ARMs) that come with an initial fixed rate.  Thus a seven-year ARM would have a fixed rate for seven years, then become adjustable, based on a financial index.  Please!  These are not the toxic loans you've heard about in the news. Though it is very possible (even likely) that your monthly mortgage bills will rise at the end of the fixed-rate period, you may refinance before that date.  And consider the fact that a very high percentage of homeowners move in four to seven years.  If your family is growing, or if older children soon will  start moving away, there is a good chance your housing needs will change quicker than you expect.  One other thing:  if the down payment represents a problem, there are assistance programs available.  Boulder County lists several options at the bottom of its web page entitled Housing Counseling and Classes. Click here.

•  "Manage" a Home for an Absent Home Seller

This certainly is not the right solution for everyone, but under the right circumstances it can make a lot of sense. You will pay much less than other renters in the same area, but you also may have to move on short notice once the home sells.  Here's what you should consider, according to Kathryn Ruhl of BolderStaging (click here).  To participate, you must have your own furniture.  The furniture must be of a high enough quality that it makes to home look good.  Obviously, you must keep the home very clean and ready to show. You cannot be a smoker or a pet-owner.  You will pay for utilities during your stay. However, in the case of BolderStaging, your monthly rent will cost between 25 and 33 percent of what other renters pay for similar homes in the same area.  Ruhl says her company is usually very successful at placing home managers in new homes when it is time to move.  Families with school-age children will probably not choose this option, but it may work for others, especially those who want to accumulate a down payment for a home of their own.  Getting that down payment together while paying full rent can be very difficult.

•  Check into Affordable Housing Programs

Several Boulder County communities including Boulder City, click here; Lafayette, click here; and Longmont, click here, have affordable housing programs. Non-profit ownership programs also exist. Most of these programs are carefully regulated, so read the fine print before signing on.  Some of Boulder City's programs require participants take classes and demonstrate household income below a specific level. For the regular program, the city limits income to $51,200 for a single person  and $58,400 for a couple.  There is a middle income program that limits income to $75,000 for a single person and $85,600 for a couple.  Boulder also has a downpayment assistance program.  Additionally, Boulder limits the resale price of some homes purchased under the affordable housing program. The city wants the homes to stay "affordable" for future buyers. Non-profit programs include Thistle Communities, click here; Flatirons Habitat for Humanity, click here; and St. Vrain Habitat for Humanity, click here. For affordable rentals, click here to check out Boulder Housing Partners.


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(Ron Rovtar is a broker associate at Prudential Real Estate of the Rockies in Boulder.  He can be reached at 303.473.1926)



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