1. Should I consider houses more instead? Historically, single family homes have held their values better than condos and townhomes. This is particularly true during market downturns. However, recent data suggests that may be changing as the 'baby boomer' generation is starting to retire and condos and townhomes typically offer maintenance free living that is becoming very desirable.
2. Is a condo not a good investment in this market? The answer above speaks to part of this question, but the reality is that any home: single family, condo, townhome, patio home, etc. can be a good investment. You just have to buy it right. Consider this example: you buy a 2 bedroom condo that you paid $200,000 cash for, but with a little updating that property is actually worth $230,000. Then you rent it out for $1500/month for 3 years. Let's say property values go up 5% a year over that 3 year period. That home is now worth $266,253 so you sell it. So right off the top you're up $66,253 in equity gain. But you've also rented it out for three years and generated another $54,000 in rental income. Of course you will have expenses, and HOA fees that have to come off the top. Let's call that $20,000 in expenses over three years. The gross upside in that situation is still about $100,000. Does a 50% ROI sound like a good investment to you?
3. Impossible feat in today's market to find a single fam house or condo in a price range of about $150K? Not impossible, but your options will be very limited at that price point. Baker and Highlands are some of the hottest areas in Denver right now. Depending on what you consider as downtown or Cap Hill, you might finf some inventory there.
Let me know if you'd be interested in getting more info about available listings in those areas.
Best of luck,
Right now she's had to scale back the search and go townhome, which a bunch of them are just out of reach, otherwise settle for the 2 bdrm condos. Many times, that's what you get for location and convenience, unfortunately.
Pretty much most properties are hold their values in this market. You may not necessarily see the inflation in value that you'd like in the timing you're expecting, but you're not going to see depreciation, in these parts of town.
Commonsense says, if that's what you can afford and that's all that's available, are multi-dwelling unit-type condos, apartments, and select small town homes, then take the plunge and go for it. otherwise keep waiting.....
Otherwise you can try to search for HUD homes (deeply discounted homes), but too many cash investors these days outbidding and jumping on all the deals faster than the first time buyer could ever act. In a sense, it's unfair that we're seeing it this way.
The biggest problem right now, is that we're in one of the lowest inventory periods - actual numbers of homes for sale and are turning over - than we've seen in several years. Some of the biggest factors to blame are the interest rates - as everything took a point to point and a quarter hit, across the board for all loan types. That has directly correlated to the amounts of people being able to do things financially, had upped the cost of the loans, and now people's money cannot go further as it once did 8+ months ago. The result, more people are holding on, and not selling, and people buying today can't get what they could dollar wise back then. It's that simple.
Single family homes these days (that aren't significantly over priced or needing massive renovations) sit on the market sometimes for 30 days or much less, or slightly more. Almost All of them getting multiple bids. My last buyer had to bid on 11 homes over a 3 month period before finally having one accepted - and each bid WAS for the asking/sales price. It wasn't the realtor's fault at all. just too many people want the same homes. It's a very competitive market right now. What's also hurting is that there are not many builders building new homes either. Denver is continuing to grow, less people selling, the rental market is completely maxed out. I don't mean to be debbie downer, but these are the realties of where we stand right now. IT COULD change in the months to come, but right now, you have to move and act quick and decisively when you see something that seem right.
What's also very important to consider, speed of closing and your money source being able to fund you that loan - this is not talked about as much as it should be, because a good portion of some realtors don't quite seem to get it as being a valid factor.
This is becoming increasingly more prevelant in today's market where some home owners want out as soon as possible. Not always the highest bidder anymore, like it used to be.
One of the reason why I am a loan officer for a mortgage company and not a traditional bank or a broker, is that I can get my loans funded in 1/3rd less time or in half the time, on occasion. Thus borrowers going with mortgage companies often have a huge advantage, if capiltalized on correctly, because these institutions often have a more cohesive infrastructure to fund a loan quickly - that means having the in-house operations to get it done quicker.
I've seen these borrowers/buyers get their offers honored over those who went to their bank, and have a few examples in my past where I have proven this to be the case. This is because some banks take up to 30-45 days to close on their loans, and some sellers don't want to wait 2-3 extra weeks to get out.
Not mention, the level of competency and skill on your Realtor, along with the relationship with the lender who is funding the loan is key. Work with a good team who know the work flow and habits of each, this way you'll maximize your ability to get you offer in the best position for consideration.
This is what I found to be true recently.
If you'd like more advice and important considerations like this, give me a call anytime.
720 362 2600 I'm happy to help any time.
YOu can use a Broker with the Housing Authority or you can do it on your own. Save a Child is an excellent resource for first time home buyers and persons with credit or housing issues. They are a non profit so how much money they make helping you is not their concern.
contact firstname.lastname@example.org, Save a Child has a great website as well.
Broker-Save a Child Housing Authority
Congratulations on making up your mind to purchase a home. It is a good time for 1st time homebuyers. There are several programs available that even have downpayments as low as $1000. Why pay someone else's mortgage payment and not your own. In the areas you are considering there may be some possibilities for homes in decent shape for $150,000. It will depend on size, condition, etc. to find the right home. There is also the option of condos, townhomes, and half duplexes to consider. You wil have more options in that realm. Let me know if I can help you further. Just contact me and we can discuss your options. We are here to assist you with your real estate needs.
Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct â€“ 303-669-1246
I actually have had friends buy in the capital hill area and were able to find condos under that price point. It would always be a good rental later on if you had it for some time. Though you mightwant to talk a an agent who specializes in Capital Hill to see what is going on there. There are many condos on the market currently, but finding a single family in that neighborhood will probably not be likely. Though you could look over in the sunnyside neighborhood. I bought a HUD home over there that I have as a rental for $150 , but it did need fix up, so keep that in mind. Sunnyside is located super close to downtown and is right off Highlands but closer to I-25 and I-70 interchange. My rental is 5 minutes from downtown but I have a nice yard.
From the loan aspect, being a mortgage banker for 5 years I can give you a rundown on what has changed pretty quickly. If you have a score less then 680 you will need 5% down if you go conventional. If your score is greater then 680 you can put down 3%, and it actually can come as a gift directly from a family member (sorry Matthew). Also, Matthew is correct about not all of the buildings being FHA approved, not all of them are. That is not to say you can't get FHA financing in those buildings. We do what is called a spot approval, actually not that uncommon. If the building is listed as approved by HUD then you don't need a spot approval. You can do thge 3% down with FHA and actually given the number of condos on the market up ther you might be able to get the seller to particiapate in a down payment assistance program that could grant you the 3% required for down payment. From there on either conventional or FHA the seller can contribute 3% towards your closing costs. Structuring the loan right, this could eliminate you from bringing any additional monies to closing aside from that initial earnest money deposit you made when you wrote your real estate contract. However, you would also be eligible to potentially receive up to what you put into the transaction (earnest money) back on an FHA loan. On a conventional loan you may find they would want you to have at least $500 of your own money into the transaction. Bear in mind with all the changes FHA is going to have more competitive rates and lower mortgage insurance then a conventional loan. I hope this helps.
Summit Mortgage Denver
Don Nelson - 303-506-0211
Would be happy to give you some great info. Please call or write me at your convenience.
Live Urban Real Estate
Good advice on getting your mortgage in place now. That way, when you find "the place" you can put an offer in immediately!
Let me know if I can help you. Even though I office in Castle Rock, I am very familiar with the Denver market and have past and current clients there. email@example.com
A tip from the financing side -- you'll want to get pre-approved before you go looking at houses. A pre-approval empowers you with a clear understanding of what a lender is willing to finance for you and you won't find yourself falling in love with a home that you are later unable to buy. For a free, no-obligation pre-approval, e-mail me at firstname.lastname@example.org.
Great decision not to rent any more. With the way home prices and interest rates are right now it costs about the same to own as rent, and as a first time home buyer you will be able to take advantage of some really excellent loan products.
To answer your question, it's not impossible to find what you are looking for. But keep in mind that your purchasing power is less when you buy a condo because you have to figure HOA fees into your monthly payments when qualifying.
I did find you a nice single family home a few blocks from the Auraria campus and a minute to the Colfax ramp to I-25, in your price range. If you don't like the looks of this one I'd love to work with you to find a home that suits your needs.
John Keene, EcoBroker
* call to find out how you can live carbon free for the next three years!
In the $150,000 price range your very best bet will be a condo or townhouse. Houses in the locations you listed will likely not be very appealing. More difficult to fix up and sell again one day than a condo/townhouse will be.
You can click on the yellow star on my web site to find all listed townhouses, condos and homes.
Let me know if I can assist you further.
Bill Kosena, ABR, CRS, SRES