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Old 08-28-2007, 09:06 AM
 
49 posts, read 276,306 times
Reputation: 39

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My fiance and I have been struggling with whether or not we can afford a single family home, and I think it's safe to say we've decided it would be smarter to start with something small while we continue to save for our dream home. We are considering a condo to start, but I'm uneasy about whether or not that would be a good idea because of how many there are out there that are NOT selling, so that might make resale difficulty 5-6 years down the road! What areas of Chicago would be better to invest in a condo in? I already know to buy one with at least 1.5 baths, outdoor space, laundry in-unit, and make a few upgrades in order to make resale easier, any other recommendations? We want to stay on the NW side or close NW suburbs, and spend around $200,000 or less. I just don't want to make a stupid investment, but I can't help but think it's gotta be better than renting, right?
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Old 08-28-2007, 09:14 AM
 
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If you insist on NW side, near NW suburbs would be better than in the city. Check out area around Des Plaines Metra station(Miner and River rd). Niles is another place to look at.
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Old 08-28-2007, 09:27 AM
 
49 posts, read 276,306 times
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Quote:
Originally Posted by outsider1 View Post
If you insist on NW side, near NW suburbs would be better than in the city. Check out area around Des Plaines Metra station(Miner and River rd). Niles is another place to look at.
Why would the burbs be better, are condos more in demand there?
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Old 08-28-2007, 11:23 AM
 
Location: Oak Park, IL
5,525 posts, read 13,948,017 times
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If you're looking to resell 5-6 years from now, you're probably going to be okay. Its the folks who want to flip condos or sell after a year or two who are going to be hit hard.
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Old 08-28-2007, 01:53 PM
 
5 posts, read 15,142 times
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Quote:
Originally Posted by outsider1 View Post
If you insist on NW side, near NW suburbs would be better than in the city. Check out area around Des Plaines Metra station(Miner and River rd). Niles is another place to look at.
Be weary of this advice! The near northwest suburban markets haven't been doing well even long before it became a buyer's market earlier this year! The over saturated new construction market in Des Plaines is a prime example! You would do better to look in areas with less condos i.e. Edison Park, Park Ridge, Edgebrook. These areas have mostly single family homes and can carry the values of condos. Happy Home Search! From your fellow northwest sider and Realtor.
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Old 08-28-2007, 02:04 PM
 
49 posts, read 276,306 times
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Quote:
Originally Posted by LaurenAtProperties View Post
Be weary of this advice! The near northwest suburban markets haven't been doing well even long before it became a buyer's market earlier this year! The over saturated new construction market in Des Plaines is a prime example! You would do better to look in areas with less condos i.e. Edison Park, Park Ridge, Edgebrook. These areas have mostly single family homes and can carry the values of condos. Happy Home Search! From your fellow northwest sider and Realtor.
What about Arlington Heights? Any thoughts on the condo market there? I have looked in Edison Park, Park Ridge, and Edgebrook, and I agree those would be great places to buy, but it's a little pricey in those areas for us.
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Old 08-28-2007, 02:09 PM
 
5 posts, read 15,142 times
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The further from the city you go, the more bang for the buck however the city's the value keeper. Stay as close to it as you can. You can find $200k condos now in Edison and Norwood Parks. Don't be afraid to make offers either. There are plenty of $210-220k listings and more than one of those will sell for $200-210k in this market. Also, a $200k unit may cost more than a $220k unit if the taxes and assessments are higher. You have to run the numbers and keep this in mind. Arlington Heights is a nice place to live but if you're looking to live in your first condo 5 years or less, you'll need the equity from it to move into a single family unless you expect massive increases in your salaries.
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Old 08-28-2007, 02:49 PM
 
5 posts, read 15,142 times
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If Arlington Heights is where you are headed then for resale sake stay walking distance to the train and buy in a building with strong reserves.
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Old 08-28-2007, 06:52 PM
 
Location: Chicago, Tri-Taylor
5,014 posts, read 9,458,320 times
Reputation: 3994
Quote:
Originally Posted by DGDurmie View Post
My fiance and I have been struggling with whether or not we can afford a single family home, and I think it's safe to say we've decided it would be smarter to start with something small while we continue to save for our dream home. We are considering a condo to start, but I'm uneasy about whether or not that would be a good idea because of how many there are out there that are NOT selling, so that might make resale difficulty 5-6 years down the road! What areas of Chicago would be better to invest in a condo in? I already know to buy one with at least 1.5 baths, outdoor space, laundry in-unit, and make a few upgrades in order to make resale easier, any other recommendations? We want to stay on the NW side or close NW suburbs, and spend around $200,000 or less. I just don't want to make a stupid investment, but I can't help but think it's gotta be better than renting, right?
If a condo isn't your dream and your primary goal is to save money for a house, renting might not be a bad option. Don't forget that with a condo, you'll have a mortgage, property taxes, assessment, the risk of special assessments (don't laugh -- a buddy of mine recently got whacked for $8k for new windows in his LP unit), and, often, a pricey parking space.

The market went so insane that a place which would cost over $2k/month to own can in many cases be rented for half that. And just think, you could put that extra monthly grand in a mutual fund for the down payment on what you really want. Plus, when you're ready to buy that SFH, it's much easier to get out of a lease than it is to sell a place. You can relax and take your time looking as opposed to scrambling around to find a place before the closing, or freaking out about two mortgage payments.

If you must have a condo, pick one in a market that isn't over saturated with condos (which rules out most trendy Chicago neighborhoods at this point) and which is near public transit or a downtown area. In other words, look along the Metra lines. Chicago's top neighborhoods are a blast but there's just so much on the market, short and medium term appreciation has to be a concern.
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