How do people afford nice homes (Chicago, Naperville: appointed, foreclosure, condos)

[Attrill]

Originally Posted by Drover

4 years worth of equity on a 30-year loan ain't much, since your early payments go almost entirely toward interest.

4 years isn't a long time, but the amount of equity you would have is dependent on the type of mortgage you have. My main point is that you are building equity if you own, and will be able to leverage that at some point in the future.

[jman07]

Originally Posted by Attrill

4 years isn't a long time, but the amount of equity you would have is dependent on the type of mortgage you have. My main point is that you are building equity if you own, and will be able to leverage that at some point in the future.

Well your supposed to own a home for like at least 5 years to make it worth it because your also paying all the startup costs and fees.

[Bhaalspawn]

One problem with the Chicago area is that the housing can only grow in a half circle around the city because of the city's boundary with Lake Michigan. That means that the Chicago area's huge population has about only 50-60% of the land that a non-coastal city (like Indianapolis) might have.

[jman07]

Originally Posted by Bhaalspawn

One problem with the Chicago area is that the housing can only grow in a half circle around the city because of the city's boundary with Lake Michigan. That means that the Chicago area's huge population has about only 50-60% of the land that a non-coastal city (like Indianapolis) might have.

All the largest cities are on large coasts. East coast and west coast. Houston etc.. Indy is the largest city without a large body of water which is why its so cheap. Plus chicago really has no other large cities by it like on the coasts.

[Drover]

Originally Posted by jman07

Indy is the largest city without a large body of water which is why its so cheap.

Actually that would be Phoenix.

[Marcus23]

Banks are becoming weary of lending now, because foreclosures are becoming more common now. So maybe everyone can't afford house, and its these banks giving loans out anyway.

[jman07]

Originally Posted by Drover

Actually that would be Phoenix.

I think Indy is bigger than Pheonix. Technically Indy is the 12th largest city. Techincally.

[Marcus23]

I remember my mother bought a house in the 1970's in bucktown for 6o'ooo and ended up selling it in 1998 for 375,000. She would of kept the 3 story house, but she couldnt afford the cost of upgrading the units.

[Drover]

Originally Posted by jman07

I think Indy is bigger than Pheonix. Technically Indy is the 12th largest city. Techincally.

And Phoenix is almost twice the size of Indy, currently the 6th largest city in the U.S. At this rate, it will officially overtake Philadelphia as the 5th largest by the 2010 census. Unofficially, it probably already has.

PHOENIX....

2000 Official Census: 1,321,045
2005 Census Estimate: 1,461,575
2005 Census Estimate of the Phoenix Metropolitan Statistical Area: 3,865,077


INDY....

2000 Official Census: 781,870
2005 Census Estimate: 784,118
2005 Census Estimate of the Indianapolis Metropolitan Statistical Area: 1,640,591

Sources:
http://www.census.gov/popest/cities/...EST2005-01.xls
http://www.census.gov/population/www...bsa-01-fmt.xls

[FROMCATOGA]

If you think the houses in the Chicago area is expensive, then you'd go crazy out in Southern California. I'm from Chicago, but I currently live in Southern Califiornia. In my neighborhood, a 3 to 4 bedroom house will run between $750,000 to over $900,000 (and possibly up over a million)... Now, that's RIDICALOUS!!!!!