House buying advice

MTG

MTG

Caught the Bug
I'll play...

I think it depends on what your objective is and your time horizon. I didn't read anything about this being your dream home so I'll ignore that little fact that Overlander added. But, generally if real estate in Colorado is anything like it is in Nevada I would be very cautious on buying anything at the moment. If your plan is to invest in real estate as a means to building wealth/capital that is a good means of achieving the objective.

I'm wouldn't be concerned as much as spending 1.5 times more then you "want to spend" as opposed to what you have calculated to being what you can reasonably afford given your income and other expenses, and, more importantly, with what makes sense from a financial perspective given the speculative nature of real estate investments. An easy question to ask yourself is, "if I spend 1.5 times more than I want to, and the market takes a dive and I have to hold the property for 5-10-15 years before selling it, would I be okay financially over that period of time?" If not, I wouldn't do it. Same goes for just buying a house in general. Trust me, it is not a good feeling to be upside down $250,000+ on a piece of real estate. :icon_crazy:
 
OverlanderJK

OverlanderJK

Resident Smartass
MTG said:
I'll play...

I think it depends on what your objective is and your time horizon. I didn't read anything about this being your dream home so I'll ignore that little fact that Overlander added. But, generally if real estate in Colorado is anything like it is in Nevada I would be very cautious on buying anything at the moment. If your plan is to invest in real estate as a means to building wealth/capital that is a good means of achieving the objective.

I'm wouldn't be concerned as much as spending 1.5 times more then you "want to spend" as opposed to what you have calculated to being what you can reasonably afford given your income and other expenses, and, more importantly, with what makes sense from a financial perspective given the speculative nature of real estate investments. An easy question to ask yourself is, "if I spend 1.5 times more than I want to, and the market takes a dive and I have to hold the property for 5-10-15 years before selling it, would I be okay financially over that period of time?" If not, I wouldn't do it. Same goes for just buying a house in general. Trust me, it is not a good feeling to be upside down $250,000+ on a piece of real estate. :icon_crazy:
Click to expand...

Clearly it wasn't ignored if you mentioned it.
 
WJCO

WJCO

Meme King
I am likely in similar shoes to you. Regardless, now is not a good time to buy here IMO. I obviously can't predict the future, however we are currently renting for the first time ever just because the prices are so inflated. At some point, I expect a change. As appealing as Colorado is, the prices just aren't sustainable. As far buying appealing land and selling it, I think overlander answered that perfectly.
 
catahoula

catahoula

Caught the Bug
My with and I are prepping to sell and build a small house about 800-1000. I'm tired of the large house and yard. Yes, it is expensive here in Colorado. However,. Downsizing can make it much more affordable.

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BananaJeep

BananaJeep

Caught the Bug
IMO, if you don't want the land the house is on... that house isn't "the one". I would keep looking until you find the perfect house on the perfect lot... it'll come!


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GraniteCrystal

GraniteCrystal

New member
WJCO said:
I am likely in similar shoes to you. Regardless, now is not a good time to buy here IMO. I obviously can't predict the future, however we are currently renting for the first time ever just because the prices are so inflated. At some point, I expect a change. As appealing as Colorado is, the prices just aren't sustainable. As far buying appealing land and selling it, I think overlander answered that perfectly.
Click to expand...
Yeah, I keep waiting for 2008 all over again. Maybe it's coming?

http://www.westword.com/news/denver-home-sales-becoming-buyers-market-9394617
 
Brute

Brute

Hooked
MTG said:
I'll play...

I think it depends on what your objective is and your time horizon. I didn't read anything about this being your dream home so I'll ignore that little fact that Overlander added. But, generally if real estate in Colorado is anything like it is in Nevada I would be very cautious on buying anything at the moment. If your plan is to invest in real estate as a means to building wealth/capital that is a good means of achieving the objective.

I'm wouldn't be concerned as much as spending 1.5 times more then you "want to spend" as opposed to what you have calculated to being what you can reasonably afford given your income and other expenses, and, more importantly, with what makes sense from a financial perspective given the speculative nature of real estate investments. An easy question to ask yourself is, "if I spend 1.5 times more than I want to, and the market takes a dive and I have to hold the property for 5-10-15 years before selling it, would I be okay financially over that period of time?" If not, I wouldn't do it. Same goes for just buying a house in general. Trust me, it is not a good feeling to be upside down $250,000+ on a piece of real estate. :icon_crazy:
Click to expand...

There are several truths above...

While in general real estate goes through cycles that favors buyers or sellers, certain areas are not going to see a normal cycle pattern...like Seattle, or in your case, Denver. Don't expect prices to favor buyers anytime soon in your area...If you do invest in property to build on, like your 15 acres, do so only if you can afford to and are willing to hang on to it for a decade or more. The luxury of owning a large parcel of land near a hot real estate sellers market will be worth a great deal more in the future as a whole parcel...I would not try to subdivide your lot just after purchase (or sell 75% to someone else to subdivide)...you will not come even close to the full investment potential if you hang on to it for awhile. I'd wait to your kids near college age, then downsizing for something you & your wife will enjoy long term, and sell off the entire lot whole...you may make enough to purchase another house & put all your kids through college...money more wisely invested.

We own a 24 acre lot on the Big Island in North Kohala...it is ocean front, with a 1000 linear feet of rocky shoreline looking across the channel at Haleakala on Maui...it is one of 13 parcels of land 20 acres or more that was previously owned by Parker Ranch in a subdivision with stringent CCR's controlling build design and no possibility of subdividing the lot...we have already been offered 800k more than we paid for it, but have no intention of selling for quite some time; we envision it being worth double within 7-10 years from now...we have steers grazing on it now to keep our ag status, thereby only paying $100 per year in property taxes...

If your lot is in a desirable location, and you can swing it financially without stretching yourself thin, buy it and don't sell for a long time...


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jesse3638

jesse3638

Hooked
Brute said:
There are several truths above...

While in general real estate goes through cycles that favors buyers or sellers, certain areas are not going to see a normal cycle pattern...like Seattle, or in your case, Denver. Don't expect prices to favor buyers anytime soon in your area...If you do invest in property to build on, like your 15 acres, do so only if you can afford to and are willing to hang on to it for a decade or more. The luxury of owning a large parcel of land near a hot real estate sellers market will be worth a great deal more in the future as a whole parcel...I would not try to subdivide your lot just after purchase (or sell 75% to someone else to subdivide)...you will not come even close to the full investment potential if you hang on to it for awhile. I'd wait to your kids near college age, then downsizing for something you & your wife will enjoy long term, and sell off the entire lot whole...you may make enough to purchase another house & put all your kids through college...money more wisely invested.

We own a 24 acre lot on the Big Island in North Kohala...it is ocean front, with a 1000 linear feet of rocky shoreline looking across the channel at Haleakala on Maui...it is one of 13 parcels of land 20 acres or more that was previously owned by Parker Ranch in a subdivision with stringent CCR's controlling build design and no possibility of subdividing the lot...we have already been offered 800k more than we paid for it, but have no intention of selling for quite some time; we envision it being worth double within 7-10 years from now...we have steers grazing on it now to keep our ag status, thereby only paying $100 per year in property taxes...

If your lot is in a desirable location, and you can swing it financially without stretching yourself thin, buy it and don't sell for a long time...


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Click to expand...

Damn, talk about diversification...haha. What don't you have a hand in?..;) Here I was happy to see the equity I have potentially accumulated in 3.5 years. That is sound advice there. I'm waiting to pay a couple things off, see where my job takes me, and hopefully watch the continued rise in equity on my house and then I plan on selling and moving. Hopefully Boise or it's outskirts in on my horizon.;)
 
GraniteCrystal

GraniteCrystal

New member
Brute said:
we have steers grazing on it now to keep our ag status, thereby only paying $100 per year in property taxes...
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Click to expand...

Ha, I remember you telling us about your two-steer-ranch in Hawaii. If you ever need someone to take them for a walk, let me know!

Seriously though, I appreciate the input Ed. Based on all the feedback in this thread, it sounds like the idea to sell off the land may not be wise.
 
Brute

Brute

Hooked
GraniteCrystal said:
Ha, I remember you telling us about your two-steer-ranch in Hawaii. If you ever need someone to take them for a walk, let me know!

Seriously though, I appreciate the input Ed. Based on all the feedback in this thread, it sounds like the idea to sell off the land may not be wise.
Click to expand...

A good friend of mine who has passed away was the greatest procurer of real estate, both residential and commercial...he started poor and was able to buy just one property...he turned that into multiple properties and had tenants like Lucas Films, eventually earned over a billion dollars before dying of cancer...he always said invest in real estate wisely, and don't sell...


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jesse3638

jesse3638

Hooked
Brute said:
A good friend of mine who has passed away was the greatest procurer of real estate, both residential and commercial...he started poor and was able to buy just one property...he turned that into multiple properties and had tenants like Lucas Films, eventually earned over a billion dollars before dying of cancer...he always said invest in real estate wisely, and don't sell...


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Click to expand...

That was my goal with my first property but my ex wouldn't let me buy her out. I offered more than 50% of the potential equity would get from the sale but still no good. Was hoping to turn it into a rental, oh well life goes on...haha. Its too bad there aren't more people like your friend around today. The US would be much better off with people who aren't afraid to work hard instead of feeling entitled to and expecting handouts.
 
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