Denver Colorado

[Shawn McMahon]

Hello Everyone, 

My partner and I are looking at buying our first home in the Denver area. Right now we are sick of Denver's rising rental rates and we think buying a house would be a smart idea right now. We've talked to a lender and I am currently qualified for 190k, 3.5% down FHA loan. Mortgage with taxes and insurance would be around $1350/month. Currently we are looking in the Broomfield/Westminster/Thornton/Arvada area but are open to other areas. Some concerns I have been thinking about:

1. I currently have a job in Denver, so I plan to be here for the next 3 - 5 years at least. However I do plan to move out of state eventually. After 3 - 5 years I would plan to either sell the house or hold onto the property and rent it out long term. Since I am only qualified for 190k the availability for single family homes in that price range is slim. On top of this, many homes in the Denver area do not cash flow well due to rising property costs. 

Current Denver area investors, what wisdom can you share about buying a home in the area at this time? 

[Travis Sperr]

Just the economics of this market show there is room for prices to continue to rise - supply and demand. Still record low inventory, low rates and a ton of demand. Of course it has to level off at some point - but the data shows the net migration increases out paces the housing units in both for rent and for sale. Affordability or lack there of has the best chance of slowing this market but there appear to be plenty of buyers in all price ranges.