Off Topic - Denver area posters...

[WildBill]

Can you guys give me a good reason why condos around Denver are so damn cheap, yet single family houses sell for a significant multiple higher? I am thinking of getting a second place out there and the rather low prices are raising alarms for me. Is it just they seriously overbuilt on condos?

 

[TTinCO]

It really depends on where you are talking about and what you consider cheap.

Dumpy studio apartments are being thrown on the market as condos all over the place. The condo market downtown is still booming, although it's slowed in the suburbs.

If anyone has $750k-1m that they want to throw at some commercial property with damn good short-term appreciation potential, and guaranteed long term, let me know.

 

[TTinCO]

BTW.....it's real easy to blow $500K on a brand new condo if you are really in downtown(or especially LoDo).

In downtown, it's thin pickins below $200K.....and I've seen some really bad places on the market for 200.

 

[DCell]

WildBill,
Housing prices have been rather high here for awhile. I just bought a house with my fiancee in september and the prices aren't too bad (compared to denver) if you don't mind living in the "burbs". we have a 3 bed/ 3 bath that went for 225k. it's got around 2000 sq ft.
I am not sure if that is a great deal compared to other cities but I don't think denver can be beat. Denver is a great sports town, plenty to do, plus we have the mountains just a few hours away.
I have 3 friends in condos that are trying to get out and I don't know if they will be able to do it without taking a bath. And all I see are more and more condos being built. I think the high home prices have forced people into condos simply because that is all they could afford. Now with the interest being as low as it has for the last year everyone is trying to lock in those rates for a long term since they can finally afford the house.
My suggestion is to decide how important the area you want to live in in the metro area and see if you can move a little further out from denver proper.

 

[WildBill]

Yeah I have noticed that about downtown, but out in the burbs the places are going for ridiculously low prices compared to the price of single family homes. Here in Vegas a 1 bedroom condo conversion goes for about $150-175k, with a smaller single family home going for $230-250k in a decent suburban area...not much difference when you consider the single family comes with land and is a bigger. It appears the single family homes in the burbs of comparable quality are going for about the same price as Vegas, but comparable condos in the suburbs are running $100k or even less for older buildings.

I know the market fairly well and came extremely close in 1998 to moving out there and buying a house in Highlands Ranch. I have a general idea of what areas are good and not so good and remember the costs from back then. It just seems the single family stuff is doing fairly good in price appreciation, but the condos are bargain basement so just wondering if the market is just overflooded with condos. I have little desire to buy in LoDo or anywhere close to downtown, just looking for a small pad to come up to 5 or 6 times a year and share with my friends and family.

 

[TTinCO]

Ironically, Highlands Ranch is a bad place to be right now. It's damn tough to sell down there. I'm north of town and am in about the same boat. It's often said that they overbuilt the hell out of the burbs, but it would have been underbuilt if the tech bubble didn't burst (which makes it even worse in the burbs because all the big tech companies were built here).

Property values will never go down in Boulder city limits.....safer than T-bills and pays like an ATM.

 

[WildBill]

Hard to believe considering they built so much all the way out to Castle Rock and south. Amazing how some of the country is booming with housing and the formerly white hot Denver market has been lukewarm for so long.

Will keep it all in mind. I don't mind too much if an area is fairly cool in price gains, I plan to hold anything I buy for a long time and first and foremost it will be just to enjoy, with some tax benefits and potential long term equity gain secondary. Nor do I see myself living there full time so I am not concerned about many of the things residents would be. Just want to make sure I don't buy a condo that ends up being in a building that is half empty and full of renters who turn the place into trash.

 

[TTinCO]

The way they are planning, they fully expect the Fort Collins-Denver-Springs corridor to explode. They're already working on another beltway that would be about 50-60 miles east of downtown all the way from FC south (that may be another way to make millions, because the investors behind it are spending a TON of cash to push it through).

I'd be careful buying out here right now-nothing is safe besides Boulder, and it's not cheap.

 

[victorygallop]

my friends that I grew up with moved out to Denver.
they opened up a successful chain of BBQ spots called brother;s bbq..

have you guys ever been?

 

[Baker]

Bill-

If you decide to buy something in Denver I have a buddy (ex-Bronco) who owns a mortgage company that I am sure would like your business. I am sure I could get him to give you a good deal.

Baker

 

[WildBill]

Sounds good Baker. If I do buy in the area its going to be rather cheap so he isn't going to get a fat commission, but what the hell? Couple places I have circled on my list are running under 100k.