Can a family of 4 live comfortably on a gross income of (Denver: rentals, insurance)

[soulpatch]

$65k/year from say between Littleton and as far north as the north side of Fort Collins?
This will be my retirement income in late 2012. I also am training for part time work as a photo-voltaic system designer and installer and I will also bring residential electrician skills with me. I really have no desire to work more than 2 weeks a month and I know I can make this happen in the Loveland area but the amenities that a city like Denver could afford my family appeals to all of us. Coming from San Diego a city of less than 600k people would, fortunately, be downsizing in a significant way.
What say ye?

[Mike from back east]

I'm sure a retiree could live on $65k/year unless there are heavy debts coming with you.

Denver and it's metro area are about 2.5 to 3.0 million people.

[soulpatch]

I was just thinking of the city itself.
Kind of like San Diego has almost 1.3 million but the region is closer to 4 million and then when you throw in Tijuana, which is just a fence away, it gets closer to 6 million.

[Moonwalkr]

I think everyone has a different definition of 'comfortably'. If you are used to living at the amount then yeah, it shouldn't be a problem provided you don't have other debts.

[Kibbiekat]

will you bring equity with you for a down payment on a house? I would say that the reason my family of 4 is able to live comfortably on about $75K is because we had about $100K to put down on our house, and only spent $300K on the house.

[Jerry Bckr]

The cost of living will be cheaper here, and some have made some good points about how much you put down on a home. It all depends on debt load (car payments & housing cost), and how you want to live. Currently, interest rates are about 5%. That comes out to $5.37 a month for every thousand dollars you borrow on a 30 year ammorization. If you put down 20%, all you would have to do is multiply the remaining loan amount in thousands by that $5.37. Example; $245,000 first loan would be $5.37 x 245 for a principal and interest payment of $1,312. You would then have to add the monthly taxes and insurance. I'm sure you're very familiar with that formula.

As you look at homes on the net, they should disclose the annual taxes. Homeowner's insurance should run you about $70-80 per month. If property taxes aren't disclosed, then a rough rule would be to multiple the purchase price by 3/4%, for the annual taxes.

[bhcompy]

Cost of living is cheaper, but not that much cheaper based on my own calculations coming from So Cal to Denver. The main thing is that you can find somewhere to rent for about 50-66% as much as you'd pay in So Cal.

[soulpatch]

We would definitely rent for at least one year if not two before we buy just to make sure about the area we want to end up in.
It sounds like $1500/month for housing is not an unreasonable expectation to meet. Frankly, that would be very comfortable for us financially.
It looks like there are plenty of nice rentals all over for under that amount. I really don't want to spend more than that because we still want some play money to spend.
I know everybody states not to depend on finding work but I think I should be able to find part time work doing residential electrical or what I hope will turn into a career as a photo-voltaic designer/installer. I don't have to make much to supplement my retirement and if we are near a college my Spanish professor wife could probably pick up a few tutoring students.

[soulpatch]

Thanks Jerry,
I have seen plenty of housing in Loveland on the MLS for well under that $245k. I have 3 years until I retire so time is on my side. I don't see RE heading up in any radical fashion for quite some time so I think we will be OK in that regard.

Originally Posted by Jerry Bckr

The cost of living will be cheaper here, and some have made some good points about how much you put down on a home. It all depends on debt load (car payments & housing cost), and how you want to live. Currently, interest rates are about 5%. That comes out to $5.37 a month for every thousand dollars you borrow on a 30 year ammorization. If you put down 20%, all you would have to do is multiply the remaining loan amount in thousands by that $5.37. Example; $245,000 first loan would be $5.37 x 245 for a principal and interest payment of $1,312. You would then have to add the monthly taxes and insurance. I'm sure you're very familiar with that formula.

As you look at homes on the net, they should disclose the annual taxes. Homeowner's insurance should run you about $70-80 per month. If property taxes aren't disclosed, then a rough rule would be to multiple the purchase price by 3/4%, for the annual taxes.