To rent or to buy when moving from Out of State to Stapleton (Denver: sale, real estate) - Colorado (CO) - City-Data Forum

LAAFTERHOURS · 06-15-2012, 01:24 PM

I am posting this to get input from the forum usuals. We have been eyeing Denver for over 3 years as a place to move and raise our family. We visit about once a year and have done a lot of research on areas we are interested in. We have refined our search down to Stapleton as it really serves all of our needs. We have kept an eye on properties for about the past 8 months, even looked at auction properties and results as an alternative. The only new builds we are interested in are Parkwood but those take about 8 months from doc signing/ deposit to completion.

My question for all of you is whether to rent or buy. We own currently so we would sell our home and roll the proceeds into a purchase in Denver. We have an 80 lb lab which complicates getting a rental (even though he is a sloth like angel of a dog) and usually requires additional deposits. We arent in a rush to buy and would like to be extremely selective on purchasing the right property but there again is a problem with renting. Many rentals want you for a year and if we find the right house, we will need to break our lease. We have successfully broken a lease twice due to home purchases and helped the landlord find a tenant so there were no costs to us. I have explored rentals through craigslist, zillow and redfin. Im a bit shocked at what you get for your money so its another reason we dont want to rent.

Thoughts on renting vs buying?

PS If anyone who lives in Stapleton would like to comment on which elementary they prefer or any other tips, I appreciate it as we have a 5 year old going into K.

Cheers - LA

Autodidact · 06-15-2012, 01:32 PM

The economists are telling us that conditions are ideal for buying right now--low interest rates, low prices on homes. Rental market is tight and rents rising. I would take advantage of the situation and buy.

Also not much to rent in Stapleton.

LAAFTERHOURS · 06-15-2012, 01:47 PM

Thanks for the input. We have more than 20% available for a down and closing and could lock in conventional rates at their lowest (excellent credit) so that's why would prefer to buy now. Im just not aware of the historical values of denver as compared to where we live now.

davebarnes · 06-15-2012, 02:15 PM

Quote:

Originally Posted by LAAFTERHOURS

I'm just not aware of the historical values of denver as compared to where we live now.

House prices are much lower in Denver than in San Diego.

1. Six years of asking prices from The Department of Numbers
a. deptofnumbers [dot] com/asking-prices/colorado/denver/ ( I am not allowed to put a direct link here)
b. deptofnumbers [dot] com/asking-prices/california/san-diego/
Currently, the median asking price in San Diego is $80K higher than in Denver.

2. Twelve years of sale prices from Trulia.
a. Denver average and median listing prices - Trulia.com
b. San Diego average and median listing prices - Trulia.com

3. The current Denver market is: "see it, buy it". If the house is one that you want AND you think the price is fair, then you make an offer the morning of the day it comes on the market.
Inventory is way down. "Denver's housing trifecta: Bidding wars, low inventory, rising prices" - Strong seller's market on horizon, MLS CEO says | Inside Real Estate News
I have friends who are looking for a $600K house and cannot find a single one.

LAAFTERHOURS · 06-15-2012, 02:30 PM

Quote:

Originally Posted by davebarnes

House prices are much lower in Denver than in San Diego.

1. Six years of asking prices from The Department of Numbers
a. deptofnumbers [dot] com/asking-prices/colorado/denver/ ( I am not allowed to put a direct link here)
b. deptofnumbers [dot] com/asking-prices/california/san-diego/
Currently, the median asking price in San Diego is $80K higher than in Denver.

2. Twelve years of sale prices from Trulia.
a. Denver average and median listing prices - Trulia.com
b. San Diego average and median listing prices - Trulia.com

3. The current Denver market is: "see it, buy it". If the house is one that you want AND you think the price is fair, then you make an offer the morning of the day it comes on the market.
Inventory is way down. "Denver's housing trifecta: Bidding wars, low inventory, rising prices" - Strong seller's market on horizon, MLS CEO says | Inside Real Estate News
I have friends who are looking for a $600K house and cannot find a single one.

Thanks for all of the above info. I am well aware that Denver is lower on median price but its not a true apples to apples comparison. A lot of the new developments in San Diego over the past 6-12 years hit a peak and then got slaughtered (the area we bought into in 2009 hit peak in 2006 and 2009 prices were 50% off peak). While I dont think a place like Stapleton will see this type of dramatic fluctuation, its always going to be in the back of my mind that it could happen and thats why Im waivering on rent vs buy. If we buy, I want the lot to be a good lot (corner or near a pool or near a park/ across from a park and not across from a commercial space ) and I want the layout to be good. The interior can be updated later (although after two low buy properties which we have thoroughly updated, my dear wife wants move in ready). Im also not sure if its bad or good to be within a block of a school. Good for the kids to walk to school but worried about traffic.

The current market here is the same in respect to number 3. Many homes are getting multiple offers. One home in our subdivision is rumored to go for 50-70K over list because its backyard is like a resort.

WiW · 06-15-2012, 02:43 PM

We moved here from NJ a year ago and decided to rent for a year before buying. We didn't know much about Denver, so used the time to get to know the Denver neighborhoods. We are in the process of buying in Stapleton.

It sounds like you have narrowed down the neighborhood and even the builder. If we had that much certainty before moving, we would have probably bought right away.

Then there are the logistics of being able to sell your home & find one you want to buy at the same time. Given your detailed requirements, that may not be easy to pull off.

And yes, rental prices are nuts here!

All the best.

Mach50 · 06-15-2012, 02:57 PM

We also rented for a year before buying and ended up in a totally different neighborhood from where we rented. Your opinion of a place will most likely change after being here for 6 months. So I suggest renting, even if you break the lease to buy, it is better than buying in an area you may not like.

davebarnes · 06-15-2012, 03:17 PM

Quote:

Originally Posted by LAAFTERHOURS

A lot of the new developments in San Diego over the past 6-12 years hit a peak and then got slaughtered (the area we bought into in 2009 hit peak in 2006 and 2009 prices were 50% off peak). While I don't think a place like Stapleton will see this type of dramatic fluctuation, its always going to be in the back of my mind that it could happen and that's why Im waivering on rent vs buy.

Look closely at this chart. Prices in Denver never went up very much and they have not fallen much.

Look at the Case-Shiller histories for Denver and San Diego.
http://ycharts.com/indicators/case_s...e_index_denver
http://ycharts.com/indicators/case_s...ndex_san_diego

JadesandRoses · 06-17-2012, 07:23 PM

As with anywhere else I would recommend renting first before buying. Some people love Colorado and some people absolutely hate it. There's not much to do unless you are an avid skier or nature lover, which I loved too, but if it's nightlife or entertainment you will find pockets of it but really there's not much. All of the "highlights" of Denver you could see in about half a day. Then you could take a drive up to the mountains. Good luck.

robertgoodman · 06-18-2012, 07:45 AM

Quote:

Originally Posted by JadesandRoses

As with anywhere else I would recommend renting first before buying. Some people love Colorado and some people absolutely hate it. There's not much to do unless you are an avid skier or nature lover, which I loved too, but if it's nightlife or entertainment you will find pockets of it but really there's not much. All of the "highlights" of Denver you could see in about half a day. Then you could take a drive up to the mountains. Good luck.

That's funny I find it hard to find time to make it up to the mountains because I keep running into things I would rather do in the city. Usually have to schedule my mountain time and stick to that schedule otherwise it would never happen. I guess it just hammers home the point you made of renting vs owning as everyone experiences the city differently.