The Calculation for Boulder, Colorado  (Dave Ramsey Misery Index)

Boulder Colorado is home to the University of Colorado Boulder, the largest Boulder Mountain Flatironsuniversity in Colorado. By the way, Boulder is ranked #1 in education, #23 in best places for business and careers, and back to #1 as happiest place to live according to Forbes magazine. Residents and students in Boulder Colorado can enjoy evenings at the historic Pearl Street Mall, a pedestrian mall that includes some of the oldest buildings and shops in the city. There they can socialize at good restaurants, and check out specialty shops such as artisan shops and Boulder, COgadgets shops, but also find popular chain stores. Boulder Colorado weather is on the dry and mild side, rarely seeing extremes in cold and hot, making it a great place to buy a home and put down roots for those who love the outdoors.

The Dave Ramsey Misery Index consists of two numbers made out in the form of money lost due to Dave Ramsey’s advice related to home purchases. (All numbers are based on an after tax calculation) They are as follows:

  1.  Home Price Appreciation (Calculated based on actual data per market) I calculated the actual price difference between the median home list price in October 2011 (when I read Dave’s advice about home buying) and the median home list price for February of 2015. This area is represented by Boulder, Colorado. The median home list price increased 30% for that time period. Using the example of a $375,900 home in that market as of October 2011, the same home would cost $98,700 more or $474,600 as of February 2015. (Information gathered from Zillow Real Estate Research )
  2.  Higher Mortgage Payment. The second number is the difference between what the mortgage payment would have been in 2011 and what the mortgage payment is now, calculated over the life of the loan secured in 2015.

Expressed in numbers the Dave Ramsey Misery Index for Boulder, Colorado would be as follows:

  • Home Price Appreciation                                                                $98,700
  • Increased mortgage payment next 360 months                    $166,451  

             TOTAL MISERY        $265,151

Each time I post a new misery index it will be for a particular community showing the misery Dave Ramsey has caused his followers

DRMIregarding his advice to wait to purchase a home. Back in 2011 I was screaming at the top of my blog posts and videos that it was time to buy a home, an investment property or a primary residence. With interest rates as low as they were and home prices at unbelievable prices it was almost impossible not to see the writing on the wall as to what was going to happen. It has happened. Going forward it appears to me that we are faced with a high probability of increased inflation. With that being said, it is still a good time to buy while interest rates are low and before prices go higher! And, please don’t listen to Dave Ramsey when it comes to buying a home. His advice has created a lot of misery for folks.

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