How can you afford the condos in Chicago (apartment, mortgage)

[Sally in Chicago]

I'm just curious. I've been here 20 years and never made more than 40,000....that's another story....but I just wonder, who's buying the condos on the north side? What kind of money are people making to afford $300K-$400K?

[SAI126]

I've wondered that too. You look at the median income figures and compare to the price of homes and condos in Chicago and it just doesn't compute.

[long101]

Well mostly everyone I know that owns a condo either has roommates living with them to make the cost easier or married. Also you dont need to spend 300-400k on a condo, look at different areas that you can afford. I can spend the rest of my life in Chicago wondering how people can afford to live in the Penthouse in the Trump and I would never be able to.

[MyssaTx]

What I wanna know is how people get qualified for a 300-400k loan on 40k income

[long101]

Originally Posted by MyssaTx

What I wanna know is how people get qualified for a 300-400k loan on 40k income

They don't. Well at least not anymore

[hank0604]

Well now you see the one of the root causes of the economic/housing slump we have been experiencing. Ideally, the average home selling price should be about 3x the average income of an area. However, at the peak of the housing boom, about 3 years ago, the average home selling price was up to more than 5x the average income.

Not to say that everyone in Chicago irresponsibly bought a home. There are other figures to account for: for example, if someone doesn't own a car, then that is about $500-700 more a month that they can spend on a home.

Also, as said above, you don't have to spend 400k on a condo. There are many good 1 bedroom condos for 200k and under.

[oakparkdude]

Originally Posted by Sally in Chicago

I'm just curious. I've been here 20 years and never made more than 40,000....that's another story....but I just wonder, who's buying the condos on the north side? What kind of money are people making to afford $300K-$400K?

Well, there's a significant population of people here in Chicago in high-paying professions (legal, medical, financial, accounting, execs) who make 100k+ even in their twenties and thirties. Then you have the (even greater) number of two income families which make 100k+.

Then, of course, you have the bubble market of the past few years where pretty much anyone could get a mortgage using a liars loan (no income/no doc).

[MyssaTx]

I dont want a 1 bedroom!

[ajolotl]

400K with 20% down and current interest rates is probably around $1700 a month (rough estimate excluding property taxes but also interest tax deduction). That is super cheap for almost any professional couple. There are endless couples in Chicago that make together several hundred K per year, not to mention the reams of people with serious money.

[ajolotl]

You have to get out of the Texas mindset. In Chicago the apartment is where you eat occasionally, sleep at night, maybe hang out and watch a little tv, and store your stuff. The city is your backyard, living room, etc. If you don't let go of the sprawl mentality you'll always feel cramped and beaten down. Embrace the city life.

Originally Posted by MyssaTx

I dont want a 1 bedroom!