Author Topic: What is reasonable to spend on a house - Denver, CO  (Read 994 times)

CatInTheHat

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What is reasonable to spend on a house - Denver, CO
« on: January 09, 2017, 08:44:57 PM »
Greetings, I am an avid Moustacher, but first time forum poster.

I recently relocated to Denver, CO with my wife.  We are currently renting a small 650 sq ft apt downtown for $1650 with storage and parking.  We own only 1 older car, and she walks to work and I commute about 15 miles one way.  We collectively earn about 180k/yr. excluding bonuses and have a MMM approved savings rate and costs fully under control.

We are planning to be here awhile (5+ yrs), and I am looking to pickup up a place to buy.  The MMM mantra is about picking up low cost real estate in a great community where you don't have to drive anywhere.  Unfortunately that isn't in the cards - everything is expensive as shit (think 550+ for a 1915 home with 1200 sq ft. in a top neighborhood) and at least one of us will have to drive or sacrifice more time than I want to give up on public transit.

We want to stay as central as possible so we can maintain only 1 car, which puts us in the highlands, sloan lake, or capital hill, but I am having thoughts on whether buying is even the right thing to do - and if it is - how much is a good max amount to spend to keep the MMM dream in site (I want to end corporate in 11 years tops (I am 34).  Theoretically we could still max our 401ks out and throw 3k+ a month towards this thing and maintain at least 2k a month growing cash savings, which is good, but not great.  I am flexible on condo vs. townhouse vs. house, and what I have kind of settled on a newer build townhouse... which runs 480k for a new build, 1250 sq ft., top location, 2 car garage, etc., but just can't get over the nearly 1/2 mill price tag for a modest place to live in a nice location.  What is the right thing to do to in this situation?  Continue to rent?  Buy a small econo-condo on the outskirts of town?  Anyone have any thoughts?


the_fixer

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Re: What is reasonable to spend on a house - Denver, CO
« Reply #1 on: January 10, 2017, 09:32:50 PM »
The areas you mention are all hip high priced areas maybe look at one of the neighborhoods that is more affordable.

Where do you both work? Wife and I have looked all over the Denver metro area and I might be able to point out some areas that are more affordable.

 

aasdfadsf

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Re: What is reasonable to spend on a house - Denver, CO
« Reply #2 on: January 11, 2017, 10:47:42 PM »
You need to decide what it is that you really want. If you are happy renting a 650 sqft home where you currently are, then by all means, just keep doing that.

The neighborhoods you are thinking about are very hot markets that are rapidly going upscale and will cost you (I live in Sloan's Lake, so I see this first hand). But you have high income, you're young, and if you can throw $3k a month at it, that will get you a very decent place in an excellent neighborhood that will likely always be a great place to live. You need to ask yourself if you are looking for a long-term place to build a life and maybe have kids, or just somewhere to dwell near work while you build your nest egg and then move on. If it's the former, then I would lean toward going for it. If the latter, then no way.