[NEED ADVICE] Is this a good deal? (Chicago: credit, loan)

[SoonToBeChicagoan]

I live right around the corner on Wood St. & Milwaukee and pay $1025 for a 1-br not nearly as nice as this.

I just moved to Chicago last summer out of college and make around 60k/year. Grad school/law school might be in my future (hopefully in Chicago) in the next 2 years. Can I afford this place/is it worth it?

What do you guys think? http://chicago.craigslist.org/chc/rfs/746808312.html (broken link)

[ajolotl]

Originally Posted by SoonToBeChicagoan

I live right around the corner on Wood St. & Milwaukee and pay $1025 for a 1-br not nearly as nice as this.

I just moved to Chicago last summer out of college and make around 60k/year. Grad school/law school might be in my future (hopefully in Chicago) in the next 2 years. Can I afford this place/is it worth it?

What do you guys think? 1br 1ba Loft, Garage Parking Included, City Views (broken link)

That's more than 4x your salary. I would just rent, especially since you don't even know where you'll be in a few years.

[ParkerP]

I can see why you like it. I'm partial to lofts myself
But you'll have to go through your expenses and budget everything. Do the budget out of your net (take home) pay, not the gross. Use the amount you have left AFTER you pay your retirement and savings accounts. 60K on a 230-250K loan is definitely a stretch considering if you have a lot of debt and what your credit score looks like. Plus, there's a $229 assesment fee (Keep in mind these can go up every year). Also, make sure certain utilities such as heat are included in the fees. If not, estimate all those utilities on top of $229. You also need to find out what the taxes are. Consider your future grad school expenses. Get ALL expenses (cable, anything that comes out of your check per month) down on paper and then go from there. Or, just do what Ajolotl said, LOL

As for the neighborhood and whether its worth it, I have never been in this neighborhood so I can't comment on it. I'm sure someone else can help you there. But, the advice above, you can use whether you get this place or another.

[lincolnparker]

If I were you, no! no! and no! reasons are:
1. it's a stretch for you to afford it
2. I do not think it's a great price for the location and size of the property
3. the building looks like a warehouse rehab, doesnt look like its built brand new in 2001.
4. If you are not sure that you will be in Chicago for the next 5 yrs. taxes and broker fees will make it a negative return on investment. and I would not advise becoming an out of town landlord. Further, you need to make sure that your job is secure enough or you have some savings as a cushion in case of layoff, unexpected medical bills, or the like.

[aragx6]

I think it's hard to say what you can and can't afford. I don't know how much sense it would be to buy right now if you;re not sure how long you might be in Chicago for, but it's certainly worth looking into regardless if it's something that interests you.

I like that building too, and when I was still looking at condos, I checked that building out. i am not sure if that is the same unit I was looking at, but if it is, they may be willing to negotiate the price, as it's been on the market for a very long time (This is one reason talking to a realtor is great, because he/she will know more about how long the property has been listed for, what, if any, price drops have already occurred, and what comps nearby are selling for.

That being said, I'm sure you know Milwaukee is a busy street, and some of those units back to the el... which I don't think I'd like too much.

[SoonToBeChicagoan]

Thanks for all the advice guys.

One more question -- where would you rather live? (given that both are around the same price):

1150 N. Lake Shore Drive -OR- 405 N. Wabash

[Avengerfire]

405 N. Wabash.

[lincolnparker]

Everything else being equal, Id go for N Lake Shore dr because it is closer to the lake and it is a more prestigious address

[SoonToBeChicagoan]

Avengefire and lincolnparker, can you two duke it out w/ other pros/cons of each. I'm really having a hard time deciding and have until tomorrow at noon to decide.

[Avengerfire]

Well the 405 N. Wabash is probably pretty close to your job (I think) that you can walk to it without a problem. It is right by the Tribune Tower,the Wrigley building, the Trump Tower and the river. There are way more activities and people around the Wabash address.

Of course with the Division address you are a bit closer to the lake and the beach,but you are also very close to the schlock bars on Division and the Viagra triangle.

You can easily get to the lake and the beach from 405 N. Wabash without having to deal with the crap on Division and on Rush...

The ages of the people that live around the Wabash address is more varied than the Division (many older people) address.