Archive for the 'Renting in Chicago' Category
Are You Ready To Buy? The Age-Old Rent vs. Buy Debate
August 19th, 2009 categories: For Buyers, For Homeowners, Housing Market, Real Estate News, Renting in Chicago
The Wall Street Journal recently ran an interesting story about the old rent vs. buy debate. This story focuses on the positives of renting, citing the high number of people who got in over their heads financially and are now facing housing foreclosure.
While I don’t agree that renting makes more financial sense than owning a home, I did appreciate the story for one reason: It might persuade some people to look carefully at their own finances before searching for a home and applying for a mortgage loan.
The financial benefits of owning a home are numerous. Historically, condominiums and single-family homes have risen in value. This still holds true, even with the housing slump. If you buy a home and hold onto it for a long enough period of time – say at least five or seven years – the odds are great that your home’s value will have risen enough for you to make a nice profit when you sell. This is especially true if you purchase a condo or single-family home in one of Chicago’s top neighborhoods, places such as Lakeview, Lincoln Square, Southport, Lincoln Park or Ravenswood.
Secondly, when you own a home, and pay off your mortgage, you’re building equity. You can tap into this equity to pay for big expenses. You can’t build equity when you’re renting.
Owning a home also brings with it some amazing tax benefits. This is often a positive that people overlook when considering the rent-vs.-buy debate.
And don’t forget, a home is more than just a financial investment. It’s a place of your own. If you want to knock out a wall, you can. If you want to build a new master bathroom, it’s your choice.
All these positives, though, don’t mean that owning a home is for everyone. This is something that the Wall Street Journal gets right. Some people just aren’t financially ready to take on the burden of a monthly mortgage payment. It’s one of the big reasons why we’re seeing so many housing foreclosures today.
Take a look at your own financial situation. Can you handle making a mortgage payment of $1,500, $2,000, $2,500 or more every month? Do you have a strong credit rating? Are you able to pay all of your bills on time every month? Are you saddled with thousands of dollars worth of credit-card debt?
The answers to these questions will help you determine if you are ready to own a home. Taking ownership of a condominium or single-family home is a big financial responsibility. But if you’re up to the task, it might be the smartest money move you ever make.
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Summer Is Nearing An End, Is It Time To Reduce Your Price?
August 7th, 2009 categories: Chicago Real Estate News, For Buyers, Housing Market, Real Estate News, Renting in Chicago
The arrival of August means one thing to a home seller: the end of the summer selling period. And if you’re home is still on the market it might be time to take a closer look at the price for which you’re asking.
The number-one reason that homes don’t sell, especially in desirable markets such as Chicago, is price. Too many sellers price their homes too high for buyers. This is one of the major factors keeping homes from moving off the market, something that is cited in this Chicago Tribune story.
It’s reasonable for sellers to want to get as much money for their homes as possible. But setting a price too high chases potential buyers away. Buyers in Chicago are smart. Before they even look at their first condominium or single-family home, they’ve already studied asking prices in a specific neighborhood. They know, then, when a home is overpriced.
What usually happens when owners price their Chicago residences too high? Their condo or single-family home sits on the market for months without attracting any reasonable offers.
Eventually, the owners realize their mistake and reduce their asking price. Or, they may give up and take their home off the market. Either way, they’ve wasted valuable time. They may even have chased away a few good offers.
This is where a skilled REALTOR® comes in. A dedicated REALTOR® will help homeowners set the best possible price for their house. REALTORS® will study current market conditions, research what similar homes sold for in a neighborhood and take into account any upgrades made to a home before recommending an initial asking price.
You might not like this asking price. You may wish it was higher. But if your REALTOR® comes highly recommended and has experience in your neighborhood, the odds are good this professional is providing you with the right price.
The housing market in Chicago has gone through a dramatic change. Homes are no longer selling for the same prices they were just a year ago. The only way to move a house today is to set the right price. And the best way to do this is to consult with a REALTOR®.
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The Chicago Homeowner is Crucial to the Success and Stability of any Neighborhood
September 8th, 2008 categories: Chicago Neighborhoods, Chicago Real Estate News, For Homeowners, Renting in Chicago
Home ownership makes for strong neighborhoods, communities and cities. Mayors across the country know this. So does our very own Mayor Daley.
Homeowners take care of their properties. Their homes are usually their largest investments. Renters can’t say the same. They come and go. Homeowners are usually around for the long haul. They have more invested in their neighborhoods, and are willing to do what it takes to beautify their communities and keep crime down.
The theory works like this: More homeowners results in safer, more stable communities.
That’s why I wasn’t surprised to discover the city’s new Find Your Place in Chicago program. It’s a new campaign by the city of Chicago to encourage residents to purchase homes across the city. The program provides financial incentives to buyers purchasing homes – which range in cost from $150,000 to $450,000 – in which the city has an investment.
In all, more than 200 home are included in the program, both single-family residences and condominiums. Many are newly constructed or rehabbed properties that boast some of the latest amenities.
You can read more about this program here.
According to the city, the program’s incentives include money for down payments and closing costs, financial assistance from area employers and a unique mortgage loan program that gives buyers a federal tax credit.
The city says, for example, that the first 100 buyers to purchase homes at Parkside of Old Town, located in the city’s Near North neighborhood at the intersection of Division and Clybourn, will receive a $10,000 grant to be used toward the purchase price.
Any program that encourages potential buyers to jump into the marketplace is a good one. The Chicago residential real estate market is still strong, and I’ve never seen a better time for buyers. There’s no reason to hesitate, buyers: Get out there and start searching for your dream home.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
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Is it Better to Buy or to Rent? In Chicago, the Answer is “Buy!”
June 18th, 2008 categories: For Buyers, Housing Market, Renting in Chicago
I like to keep up on any news surrounding the residential real estate industry, something that helps me serve my buyers and sellers better. Lately in my readings I’ve come across quite a few stories focusing on the growing number of people who have chosen to rent instead of buy a condo or single-family home.
This is matched by sellers who have grown desperate enough to take their homes off the market and turn them into rentals. In some of the nation’s most troubled housing markets, places like Orlando and Ft. Lauderdale in Florida, sellers who’ve struggled to move their homes have decided instead to rent them out. The feeling is that this rental income will tide sellers over, especially those who have already purchased new homes, until their local real estate market turns around and they can finally find a buyer.
The question, then, is an obvious one: Should buyers and sellers in Chicago follow suite? Should buyers hold off on purchasing a home and rent until the sluggish housing gmarket rebounds? Should sellers in the Chicago area who are struggling to sell their own condos and single-family homes consider this strategy? My quick answer to both questions: No.
The reason is simple: The Chicago housing market is still strong, especially in the hotter neighborhoods surrounding downtown and the North Side. Buyers here can find a nice property, hold on to it for five-plus years and watch it appreciate in value, even if the housing market remains in its slump. Potential buyers who choose instead to rent will be left with nothing after these same five-plus years. Sellers here, if they price their homes reasonably, should be able to move their residences for a fair price, one that includes a solid profit. There’s no reason to try instead to rent out these homes.
Here are the numbers that back me up: The Illinois Association of REALTORS® late month released their most recent housing statistics. According to the numbers, total home sales in Illinois jumped a strong 8.5 percent from March to April. And in Chicago, the median price of a home increased 3.4 percent during the same time. That median price now stands at a healthy $300,000. One year earlier, the median sat at $290,000.
This means that Chicago homeowners are still selling their homes for good prices. And while home sales in the city will take longer now then they did during the housing boom, residences that are priced correctly – and homeowners need to work with a skilled Realtor® to guarantee that they are pricing their properties right – will move.
So if you’re fortunate enough to live in the Chicago area, don’t pound a “For Rent” sign in your front yard and don’t scour the “apartments available” section of the classifieds. Instead, enter the housing market. You live in the perfect part of the country to do this.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
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