Frustrated Renter: Please remind me why I shouldn't buy (Chicago: crime, houses)

[Vlajos]

Originally Posted by Irishtom29

Only if I want to buy.

[Chicago76]

Originally Posted by bcandy

I would hate to buy because who knows how long I'll be here. (I just can't take the winter) That said I love my job, have no real plans to leave, and keep wondering if I'll rent for the next 5 years in the city and then end up kicking myself that i never bought....

Based upon likely appreciation, opportunity cost related to forgoing investing in other things when buying, etc, you shouldn't kick yourself if you're still here and renting 5 years from now. 5 years typically isn't enough to flip this into an owner favorable position anymore.

Aleking gave you some excellent advise, although anymore, I think break even renty v. buy is more like 7-10 years vs 5-7 years. Still, take a look at the NYT calculator, and figure out what's best for you given your time line.

[Aleking]

Originally Posted by Chicago76

Based upon likely appreciation, opportunity cost related to forgoing investing in other things when buying, etc, you shouldn't kick yourself if you're still here and renting 5 years from now. 5 years typically isn't enough to flip this into an owner favorable position anymore.

Aleking gave you some excellent advise, although anymore, I think break even renty v. buy is more like 7-10 years vs 5-7 years. Still, take a look at the NYT calculator, and figure out what's best for you given your time line.

Yeah my 5-7 was a minimum but rents have not fallen nearly as far as the cost to own and in some cases remained flat or increased, but obviously the longer you can stay put, the better. Given the current prices and rents, once you get over 7 yrs or so, most places will start saving you a lot of money. The whole buy and flip in 1-2 yrs mentality was so stupid and I'm glad to see it go.

[tomcho]

Originally Posted by Aleking

Yeah my 5-7 was a minimum but rents have not fallen nearly as far as the cost to own and in some cases remained flat or increased, but obviously the longer you can stay put, the better.

I haven't rented since 2002, but I'm hearing that rents are getting crazy. Do you see this trend dropping under 5 years soon? Prices can't go too much lower and pretty soon it would appear landlords are going to out price themselves.

[nowincal11]

It's so odd across the country. Out West, rents have held stagnant. For a while they were down, but now they have stabilized.

I just remember buildings in Chicago were desperate for a little while, largely summer of 2008 thru spring 2010, both downtown and outlying neighborhoods. Now, why is it that downtown has become extremely expensive while outlying neighborhoods are still feeling the pinch?

[sydbarrett]

Originally Posted by nowincal11

Now, why is it that downtown has become extremely expensive while outlying neighborhoods are still feeling the pinch?

Because most of the jobs being added in the next year or two are for white collar people and many of them want to live downtown.

[themag62]

You can find reasonable rents outside the Loop and still get to work in under 30 minutes. Plus you can have a place on a nice leafy tree lined street walking distance to the lakefront. You will need to go further N than Lakeview. Drive or walk around Edgewater or Irving Park a little west and look for For Rent signs. Many private owners who rent out units in small bldgs. never advertise except for a sign in the window. There are plenty who are long time owners of 2, 3, or 6 flats and are not going to go into foreclosure.

[bcandy]

well another 5 years from now, I would be 7 years in so I would definitely be close to break even point especially if rents continue to rise as they have....And even if I don't come out very far ahead financially, there is something to be said for not spending a few weeks to a few monthseach year in the moving process (searching, packing, settling in). In fact thats a benefit I would be willing to pay for after having lived in a new place every year for 5 years since leaving school. I would love to settle somewhere for awhile, but as a renter a lot of things are out of your control.

We are willing to look outside the south loop but still want a good mix of African-American and Caucasian young professionals along with restaurants/bars patronized by both. Along with the 15-20 minute ride and 30 minute walk to work. We definitely don't want something that is mostly residential as we still want to go out a lot, but definitely don't like the drunk college kid scene either. Admittedly, I still haven't been to most neighborhoods in Chicago but I also haven't found that in a lot of places I have been besides the south loop.

What's the neighborhood like in West loop? I haven't spent any time there especially at night but the prices seem much better. We also plan to look Wicker Park area. Its just much harder finding places there because its much more of a "just post a sign" neighborhood. Any one know of any reliable places to look for listings? It seems like Craigslist is all apartment rental company spam.

[Savoir Faire]

Originally Posted by Irishtom29

This city is going down the toilet. With the loss of industry the money needed to run the city will have to come from increased taxes including property taxes. Chicago can look forward to decreased services and increased taxes.

I wouldn't buy in Chicago, I'll continue to rent.

If not Chicago, where would you recommend buying? What areas are not going down the toilet?

[nowincal11]

Anywhere downtown will be ok plus Lincoln Park and Lakeview. Those areas are not going downhill anytime soon and will likely be desirable another 20 years at least.