Guerreroe1980, Home Buyer in Commerce City, CO

Young couple looking to move to GVR/Gateway area around March/April: Should we buy or lease?

Asked by Guerreroe1980, Commerce City, CO Mon Feb 18, 2013

We are a young couple with two children looking to move to the GVR/Gateway area around March/April. We both have excellent credit and will be moving into the same line of work in Denver. We currently own a property in Southern CO, which is our one and only debt ($975/month) and would like to keep it as an investment if possible. At full employment, we are looking at $85K per year. Not sure if we would qualify to buy a second property right away or if we would have to sell our current property in order to qualify. I am a bilingual teacher. Any suggestions?

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Answers

14
Guerroe 1980,

I am a proponent of purchasing rather than renting for several reasons. First of course is that you will be paying your own mortgage and not the landlords. Rents are going up 8.5% per year in Denver. You can purchase a home for little or no down in many cases and your payment is often less than the rent. I am a former resident of Green Valley Ranch and have nothing but good things to say about it at this time. You can get the most for your money in GVR than in any other of the Denver Metro areas.

The only problem now is the low inventory, multiple offers, and quickly rising prices. I would suggest starting now to look and not wait until March/April to start. You need to have all of your questions answered, be fully approved, and ready to pull the trigger when home you like comes on the market. It will only get more competitive as we move into the spring months. Let me know if I can be of assistance to you in this process.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
1 vote Thank Flag Link Sat Feb 23, 2013
http://www.boulderrealestatenews.com/?p=2331 blog discussing pros and cons to renting versus buying.
0 votes Thank Flag Link Thu Feb 21, 2013
I would first contact a good lender. I have a couple that make the process really easy. Green Valley Ranch and Reunion are my areas of specialty. I own a home and Green Valley Ranch and absolutely love the area. Once you figure out your price range the next step if to find someone to help you that is familiar with the area. I would love to assist you in any way I can you can contact me 24/7.

Lake Bishop
720-277-9219
Lake@LakeBishop.com
0 votes Thank Flag Link Wed Feb 20, 2013
My first suggestion is to speak with a lender. Looking at all of the variables involved, a true mortgage professional will be able to answer many of these questions, particularly if you can qualify without selling your Southern Colorado home.
If that can be accomplished, then the very short answer is that it would make very good sense to buy. While prices in Green Valley Ranch, as they are in most areas of the Denver metro, are recovering, and are probably close to their 2007 levels, the predictions are for continued improvement, which means prices will likely increase.
Furthermore, with incredibly low interest rates, the affordability index is at an all-time high.
But all of this depends on your particular situation. It would SEEM to make sense to buy as opposed to rent, but this must be thoroughly investigated from all angles.
Best of luck.
I can supply you with a number of excellent lender contacts if you need help in that direction.
Chuck Strauss
Your Castle Real Estate
720-318-7598
demverhomeguru@gmail.com
0 votes Thank Flag Link Mon Feb 18, 2013
Guerrero,

You should buy as it is so much cheaper than to rent. I know the perfect area for you in GVR as I just sold a house to another couple there today.

Call me and I will connect you with more information and a couple of lenders that I like.

Thank you,

Ethan Besser
303-856-8980
Keller Williams.
0 votes Thank Flag Link Mon Feb 18, 2013
Hi -- your question depends on several variables: your credit, how much $$ you're going to put down, etc. My advice would be to contact a lender to pre-qualify before you move. Pre-qualification is 100% free and there is no obligation to use the lender, but it's the No. 1 step before deciding to rent or buy (and whether or not you can afford it and your other house in Southern CO.

I have a wonderful lender who can help answer your questions: Andrew Gallegos at Fairway Mortgage. 303-347-7565.

Good luck and feel free to contact me as well at 303-906-3150. Julie Montgomery, RE/MAX Masters, Inc., http://www.jmontgomery -- I grew up in Pueblo so we So CO people need to stick together!!
0 votes Thank Flag Link Mon Feb 18, 2013
It sounds like your income to debt ratio would allow you to qualify, however there are other factors involved in qualifying for a mortgage. Depending on your funds available for down payment, I encourage you to get with a lender now rather then later. FHA funding fee's and Mortgage insurance terms are set to change in March and April which could affect what you can buy and your financing terms. I have some great lenders that can help you with that and supply you with the necessary knowledge for you to make an informed decision as to what will be best for you. It only takes a few minutes by phone to do that.

There is still low inventory in Denver right now and the purchase market is tough, however finding rentals right now is even tougher. Either way, you really need to start your search now as March is only two weeks away.

I wish you the best on your move.

Amber
0 votes Thank Flag Link Mon Feb 18, 2013
Well best of luck on your New Endeavors!

I would suggest that you start by talking with a couple of lenders to see if you qualify for a loan. I would be happy to recommend a couple to you. With your current property and new employment situation they would be able to answer the question.

I would say "Purchase" if you can qualify since the rates are low and the GVR area has some inventory as well as new built homes. Renting never help your financial situation, but you might have to do it for a year or so till you qualify for a loan.

I here to help in any way that you might need!

Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
720-329-1470 |Bill@DenverRealtorForLife.com
5280 Magazine FIVE STAR Real Estate Professional – 2010, 2011, 2012
0 votes Thank Flag Link Mon Feb 18, 2013
Hi, and congratulations on your upcoming move! Also, it's great that you're oriented towards keeping your property down south as a rental - building up a solid portfolio of investment properties makes a lot of sense, even if you start modestly.

As they say, "all things being equal" you should look at buying if possible. Rents have escalated tremendously in the past 6-12 months, while home prices are just beginning their upswing. So, this would be a great time to buy, while you'd definitely be paying a premium to rent. It sounds like your in good financial shape but of course you'd need to talk to a good mortgage person (I have a couple of names if you'd like). Depending on how long you've been renting out your investment property, you may be able to count some of that rent as income to help you qualify.

As a teacher, you might also qualify for discounts on government-owned properties (up to half) through the Good Neighbor Program. Although those properties can be few and far between, they're worth a look.

Again, congratulations, and feel free to give us a call.

Tony & Karen
0 votes Thank Flag Link Mon Feb 18, 2013
Thank you for your response! Yes, we have been looking into rental properties and noticed that it is quite high. I am interested in finding out more about the Good Neighbor Program. Do you know what the requirements are? How do I get access to listings and such? Location is important for us!
Flag Mon Feb 18, 2013
Hi Guerreroe,

If you are able, the most likely scenario to benefit you the most would be to buy. This link is to a rent vs. buy calculator, start here http://www.realtyandfinance.com/HomesAuthenticated.aspx?tabi… and then talk to your mortgage lender and see if you can get qualified. I hope this helps; good luck to you!
0 votes Thank Flag Link Mon Feb 18, 2013
Your very first step would be to talk with a mortgage broker to determine if you qualify for another mortgage. If you do, then you need to make a decision as to whether you are comfortable with the amount you qualify for and the quality of the home you can purchase in that price point. GVR / Gateway has homes in all different price points, typically starting in the 130s (Gateway) or 150s (GVR) and going up.

Buying or leasing is really a personal decision and you really should go through a thorough consultation to help determine what is in your best long term interest. Are you planning to stay less than 3 years? Do you have adequate funds to take care of repairs? Do you want the tax break you will get with the mortgage deduction or is that not so important? Lot's of questions to ask yourself.

On a REALTOR forum, of course we're going to tell you to buy. Unless you plan on a short term investment, real estate has been one of the safest investments you can make for long term gains.

As with most of the metro area, the prices are increasing quickly with very little inventory and pent up demand from buyers who largely stayed out of the market from 2008 - 2012.
Web Reference: http://www.my5280homes.com
0 votes Thank Flag Link Mon Feb 18, 2013
Oh definetely buy! It's a great time to buy in that area. Rent would be much higher here. I have a number of buyers and sellers there. Give me a ring and ill get you exactly what you need. 3035894591. Jeff@blieaky-home.com
0 votes Thank Flag Link Mon Feb 18, 2013
Buy! There are too many reasons to list, buy. Here's a wonderful lender to answer your questions.


Amy Watt
Senior Mortgage Advisor
(303) 882-2712 l Cell
CO Mortgage # 100008375
NMLS# 257618
Recipient 5280 Top Mortgage Professional 2012 & 2011
Regulated by the Department of Real Estate
0 votes Thank Flag Link Mon Feb 18, 2013
Call me... I will have two listings later this spring coming on the market in GVR. Buying is by far the smartest method in Denver. Rents are astronomical and mortgage payments with the still historical rates are very much in your favor. Let's talk.

Kim Davis
Broker/Owner
Re/Max of Cherry Creek Inc.
303.218.8373
FindYourSpace@me.com
http://www.FindingYourSpace.com
0 votes Thank Flag Link Mon Feb 18, 2013
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