Would it be completely unwise to buy high end real estate in an undeveloped neighborhood in Oswego? (Chicago: renting, assessor)

[AuDiBelle]

Yikes, I cannot fathom why anyone with a budget of $550k - $750k let alone $950K+ would consider Oswego, sorry. If you really want the perfect home on a big lot, why not just purchase some property NOT in an unfinished subdivision and custom build the home of your dreams? Then you don't have to worry about HOA's or if/when the other lots will be developed and you get to customize your house to your desires.

[krispro6]

We didn't think we would like rural Illinois coming from So. Cal., but turns out we do!! You just never know. We thought about building our "dream house" but to replicate the one in the unfinished subdivision it would probably cost well over $900k, whereas we could purchase the existing one for much, much less. I guess the point a lot posters are trying to make is that "savings" could ultimately result in an even bigger loss.

[AuDiBelle]

Originally Posted by krispro6

We didn't think we would like rural Illinois coming from So. Cal., but turns out we do!! You just never know. We thought about building our "dream house" but to replicate the one in the unfinished subdivision it would probably cost well over $900k, whereas we could purchase the existing one for much, much less. I guess the point a lot posters are trying to make is that "savings" could ultimately result in an even bigger loss.

I don't have anything against rural, but there are prettier/more desirable rural areas that I would choose over Oswego if I were looking to purchase/build a ~$500/700/950K house (think Barrington). At least you could be fairly certain that cheap vinyl boxes won't eventually be erected all around you there. Regardless, buying a house in a deserted subdivision just spells disaster even if you get a deal on it. Proceed with caution. Best of luck.

[divakat]

I wouldn't do it. The far out areas with no walkable downtowns or train lines are never going to come back in my opinion, and are not nor ever will be good investments. Why not look into the w. side of St. Charles? Much better investment, still rural feel, top schools, great downtown, lots of parks, trees and the Fox River. Lots of builders constructing new homes or plenty of beautiful existing homes to choose from. With your budget you'd get a huge house on a huge lot there and it's much nicer than Oswego, imo.

[krispro6]

We moved to the midwest for the sole purpose of being close to family in Grundy County, which is even further south of Oswego. A move to the St. Charles area would be an hour plus drive for family that we see on a daily basis, which would be too far, therefore, we are somewhat confined to the Kendall County area. We actually don't mind where we are living now in Grundy County and have contemplated a purchase here, but we don't even have a Starbucks and it takes 30+ minutes just to get to a Target, let alone someplace like Trader Joes/Whole Foods, which is an hour and a half drive. We figure Oswego is a nice middle ground and we actually like it. We however, would like a house we can really enjoy and would prefer not to be in a mass produced neighborhood, although some are very nice and I realize have benefits too.

[yousah]

I'm an appraiser who has been appraising in that area for about 25 years and I live about 5 miles from there. The list prices for that subdivision are outrageous for this market and represent pricing that is hundreds of thousands of dollars higher than the typical 'high-end' market in Oswego, and Kendall County for that matter. The lots are way undersized for that price range. My friend owns a large property that located almost right behind that subdivision and he bought somewhere near at least 10 acres for well under $300,000 years ago.

John Greene Realtors initially started in Naperville which has generally higher prices. They came to Oswego a number of years ago and never quite dropped the Naperville mentality. That subdivision is rather unique, and yet, you can find housing with similar amenities elsewhere for lower prices, or at least spend the same amount of money elsewhere and end up living in an area with average values are clustered more around that price range.

There are numerous problems with moving into a subdivision that has sort of stalled its building process. The CCRs are really only enforceable if the builder stays in business or at least can sell out the subdivision so it's viable. You never know for sure what will happen in the future if the developer can't sell any more houses or lots. It's extremely risky, and one main reason why their prices are so outrageously high when they have been trying to sell those houses and lots for years with very few takers.

In fact, there aren't even any MLS sales in that subdivision in the last 24 months, and only 1 active listing that has been on the market for almost one year.

One caveat-- this price range often attracts high income and high net worth individuals who aren't always necessarily concerned about the long term investment potential of such a property. I'm not saying they're uninformed- but I've met plenty of high end buyers who can afford to take a loss on a property that they've fallen in love with and want to live there no matter what. I think this subdivision falls into that category in this market.

[hotwingsmadison]

I took a look at the home you are interested in (not that hard to figure out which home it was), and I agree it appears very nice and I can see why you are in love it with. However, lets say best case you are able to get the price down by $50-75K and end up paying in low 800/780 range.

I am sure there are some incredible homes in the very southern part of Naperville that borders Plainfield that will likely meet your needs, especially in this high end budget. Sure, it may add 15-20 minutes to your family commute vs the Oswego home, but you will be living in a great city, within an established community, and be a bit closer to Chicago and the Naperville city center (which has tons to do).

I just cannot see taking such a big gamble on this home when you could have so much more piece of mind, better resale, better highway access, and really only give up a little in terms of your family commute/lot.

I always think market time is telling - there is a reason why this home has not sold despite being on the market for over three years (for the all the reasons other posters have nicely articulated).

Whatever you may end up choosing, the best of luck to you!

[krispro6]

I posted a while back about a house we considered purchasing in an undeveloped subdivision in Oswego called Grove Estates, but decided not to for a variety reasons, most of which are addressed in this thread. Anyway, I've kind of kept my eye on the house and the development and I recently heard there a couple of more houses now being built there. The house we liked is still available (of course), although it briefly went contingent and then came back on the market at a lower price. When the house came back on the market it's property taxes for 2011 were listed at $28k!!! Previously it must have been taxed at land value. I called the assessor and the assessed value went down for 2012, but the tax factor went up so taxes are still $28k. How can a house on the market for $779,900 have such high property taxes? That's over 3.5%. Middle-Aged Mom was right! How does Kendall County come up with the assessed value, is it based on sq. ft.? Is the property tax so high because it's in a SSA? I mean I know property taxes are high there, but this is obscene!

4779 LEE'S Ct, OSWEGO, IL 60543 | MLS# 08303367 | Redfin

[chet everett]

Thanks for the update.

I suspect that home and others like it will haunt developers for many, many years.

The pool of potential buyers in any area is highly dependant on the kind of employment options available and the combination of a regional soft job market and traditional trends toward higher wage jobs being located largely in the Loop and other more concentrated employment centers is out of step with costly homes far from transportation...

The details on how the property tax for that home compare to others of similar size almost certainly reflect the high costs that are needed to support the "boom town" need for new schools and other infrastructure. The various state funding forumulae are not friendly toward newer areas ...

[3Series]

If you really like the house, you might try to see if the developer is willing to do a long-term lease.
Did you say you have your own business and work from home? If so, you'll realize those tax savings even if your monthly nut for a purchase is the same as renting. I'd bet you won't have any price appreciation in 15yrs or more and any equity you'd have in principal would probably be sucked out my maintaining such a large place....