Frustrated Renter: Please remind me why I shouldn't buy (Chicago: for sale, foreclosure)

[bcandy]

I have been in Chicago south loop for 2 years now and I've had a difficult time with rentals. My current landlord was foreclosed on the month we moved in and it took months to straighten out the mess. Now apparently the rental market is so hot that is difficult to find a comparable place to move to. This is despite the fact that the area seems flood with things for sale. I'm feeling so frustrated, I might buy just not to have to go through these hassles each year. Please remind me why buying in Chicago right now is not a good idea.

[Aleking]

If you plan on selling your hypothetical purchase anytime soon, like less than 5-7 yrs, just rent. A property should not be an investment, it's a place to live and in most cases it makes most financial sense if you are staying long term.

As for your story, you can often get more bang for your buck amenity wise, renting a condo from a private owner but you're more likely to face the type of foreclosure ugliness you mentioned.

Places are flooded with things for sale for a bunch of reasons:
- Too many people bought places too expensive and are slowly being foreclosed on or walking away
- People are hesitant to jump into the down market / trying to time the bottom
- Sellers are in market denial / becoming landlords waiting for things to rebound
- It's really hard to get financing to buy

In the meantime, places that can be purchased for rental parity will continue to get snagged up by cash investors.

The NYT has a great rent v buy calculator, a quick google search will find it for you. I think you'll see just how crucial your residency timeline is.

[Vlajos]

If you plan on staying in the place for a decent amount of time. I would buy.

[nowincal11]

When I left Chicago, it seemed like the downtown rental market was still pretty strong, but outlying neighborhoods with smaller buildings was really weak. The highrises downtown seemed to still be charging a lot even with a month off to move in, while the smaller brownstones in Wicker Park/Bucktown were still lower for one beds.

[Vlajos]

The rental market downtown is extremely strong. Rents are at highs never seen before. The neighborhoods have been stable, at least in the more desirable areas.

[MannheimMadman]

Yep. I saw the words "south loop" and wondered no more. It's crazy money to live downtown. OP, if you feel like you're being priced out - it's because you slowly are.

[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....

[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.

[Vlajos]

That could be said for virtually every US City. Better move to Brazil!

[Irishtom29]

Originally Posted by Vlajos

That could be said for virtually every US City. Better move to Brazil!

Only if I want to buy.