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Old 10-10-2013, 09:41 PM
 
39 posts, read 51,893 times
Reputation: 30

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Quote:
Originally Posted by nikitakolata View Post
IMO, Humboldt Park isn't going to be fully gentrified for a long time to come. I bought there in 2008 and we had to take a loss of $150,000 to sell in 2013. That was on the east side, just south of North Ave and just west of Western. The area has come a long way but there is still a long way to go.

The complaints about the distance to the train have some validity. My walk to the train was about 15 minutes. It wasn't horrible and, luckily, it is very easy to park a car by the Western blue line station, but the walk got old after awhile. I took the Western bus every once in awhile but the linking of the bus and train was hit or miss and usually it just seemed easier to walk.

If I could go back in time to 2008 and buy a house anywhere it definitely wouldn't be in east Humboldt Park. If I were buying now I still wouldn't buy there if there were other locations that would work with my budget.
Did you buy in 08 pre recession?

How much did you pay for a house? A 150k loss in an up market 2013 sounds very bad.

At that loss you where probably better of renting it for another decade and seeing if you can a reasonable loss or a return.
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Old 10-10-2013, 11:57 PM
 
62 posts, read 134,678 times
Reputation: 41
Quote:
Originally Posted by nikitakolata View Post
IMO, Humboldt Park isn't going to be fully gentrified for a long time to come. I bought there in 2008 and we had to take a loss of $150,000 to sell in 2013. That was on the east side, just south of North Ave and just west of Western. The area has come a long way but there is still a long way to go.

The complaints about the distance to the train have some validity. My walk to the train was about 15 minutes. It wasn't horrible and, luckily, it is very easy to park a car by the Western blue line station, but the walk got old after awhile. I took the Western bus every once in awhile but the linking of the bus and train was hit or miss and usually it just seemed easier to walk.

If I could go back in time to 2008 and buy a house anywhere it definitely wouldn't be in east Humboldt Park. If I were buying now I still wouldn't buy there if there were other locations that would work with my budget.
You changing your mind about East Humboldt Park very often, I remember yours older post when you said exactly opposite.
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Old 10-11-2013, 07:19 AM
 
Location: Uptown
1,520 posts, read 2,560,023 times
Reputation: 1236
buying in HP in 2008 of all years and selling just a few years later seems like a terrible idea. 2010-2011 was the year to buy there and 2030 will be the year to sell.
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Old 10-11-2013, 07:55 AM
 
Location: Chicago
3,339 posts, read 5,955,639 times
Reputation: 4241
Quote:
Originally Posted by salata87 View Post
You changing your mind about East Humboldt Park very often, I remember yours older post when you said exactly opposite.
Well, I wanted to sell my house. We bought in 2008, which was a bad time to buy so we took a huge hit to sell. Yet, we wanted to get out of there badly enough that it was worth taking the loss to do so. I don't think east HP is the worst place in the world, but I certainly wouldn't buy there if I could buy somewhere else. Hindsight being 20/20 it was obviously a mistake for my husband and I to buy there. We would have been happier somewhere else.
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Old 10-11-2013, 07:58 AM
 
Location: Chicago
3,339 posts, read 5,955,639 times
Reputation: 4241
Quote:
Originally Posted by thebizkit View Post
Did you buy in 08 pre recession?

How much did you pay for a house? A 150k loss in an up market 2013 sounds very bad.

At that loss you where probably better of renting it for another decade and seeing if you can a reasonable loss or a return.
We paid $700,000 in 2008 and sold for $558,000 in 2013. It was bad, but not as bad as the house next door (which was built at the same time by the same builder) that was purchased for $741,000 only a couple months before we bought and sold for $496,000. Ouch. But, yes, those were expensive houses for the area.

Unfortunately, it would not have been possible to cover our costs renting the house. Not to mention that renters would most likely have damaged the house and that would have been hard to deal with emotionally because we put a lot of work into the house. In the end, we just wanted to cut our losses and move on.
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Old 10-11-2013, 09:35 AM
 
39 posts, read 51,893 times
Reputation: 30
Quote:
Originally Posted by nikitakolata View Post
We paid $700,000 in 2008 and sold for $558,000 in 2013. It was bad, but not as bad as the house next door (which was built at the same time by the same builder) that was purchased for $741,000 only a couple months before we bought and sold for $496,000. Ouch. But, yes, those were expensive houses for the area.

Unfortunately, it would not have been possible to cover our costs renting the house. Not to mention that renters would most likely have damaged the house and that would have been hard to deal with emotionally because we put a lot of work into the house. In the end, we just wanted to cut our losses and move on.
Well at least you din't buy property in the Galewood Crossings "Gated" Community. The recession hurt EVERYONE who bought a home PRE Crash.

But why in the world would you invest that much into a transitional neighborhood and then give up after 4 years? You say you could not cover the costs but it sounds like you expected to get return in as little as 3-4 years in HP, that's just not realistic.

May I ask what are some of the terrible things you experienced where you lived that made you move so fast and lose so much? I drive by that area on a daily basis and I see a ton of new construction and a bunch of families in the area. Sure there is still a few of those ugly public housing huts in the area, but its not stopping people from building there.
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Old 10-11-2013, 10:06 AM
 
28,455 posts, read 84,943,296 times
Reputation: 18725
Default Buying at peak is easy to see the mistake in hindsight...

Quote:
Originally Posted by Aleking View Post
buying in HP in 2008 of all years and selling just a few years later seems like a terrible idea. 2010-2011 was the year to buy there and 2030 will be the year to sell.
...it would be very interesting to hear what sorts of factors go into the suggestion that a 19-20 year horizon is ideal for return on investment.
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Old 10-11-2013, 10:12 AM
 
2,990 posts, read 5,238,982 times
Reputation: 2365
Quote:
Originally Posted by Aleking View Post
buying in HP in 2008 of all years and selling just a few years later seems like a terrible idea. 2010-2011 was the year to buy there and 2030 will be the year to sell.
Ha... there were a fair amount of people who saw the recession coming, but very few laypeople were even thinking about it.

Hindsight blah blah blah.
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Old 10-11-2013, 10:13 AM
 
39 posts, read 51,893 times
Reputation: 30
Quote:
Originally Posted by chet everett View Post
...it would be very interesting to hear what sorts of factors go into the suggestion that a 19-20 year horizon is ideal for return on investment.
I think thats a very conservative prediction for a substantial return IMO. Heck, people who bought in 2010 are already seeing a return if they invested modestly. Ive seen homes sell for 150k in 09-10 and sold again for 200-220 in the last year or 2. Anything over 500k asking in HP is bonkers if you ask me, at least right now.
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Old 10-11-2013, 12:45 PM
 
Location: Chicago, Tri-Taylor
5,014 posts, read 9,390,551 times
Reputation: 3987
It's easy to criticize for paying a King's Ransome for a chancy neighborhood but it shows the power urban hipness can have in parting folks from substantial sums of cash for housing that makes no practical sense whatsoever, and may not even be safe. Give Humboldt a couple thousand more hipsters and you'll see prices rise back to that level fast. I would have waited for that reason, though maybe not at those numbers. That 558k could have easily turned into 300k by now.

I agee real estate should be viewed as a long term investment but most who speculate on gentrification are expecting fast returns, and are not always equipped to live in the speculated area as currently constituted for very long (they have kids, a low tolerance for crime, or what not). As with any game, there's winners, and there's losers.

We may have reached the "zero sum" game stage with hipsters and gays. We definitely could use more! Can we give away fixed gear bikes or something?
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