Chicago Real Estate/Housing - Buy, Sell, or Hold?

[bguar]

Originally Posted by chet everett

The influx of people that have neither the desire nor likely overall finances to own can help keep the rental market significantly inflated for quite some time. Folks with a preference for more mobility understand and accept paying a hefty rental premium in markets where there is significant divergence from often hefty prices required for ownership. Further lenders are not eager to accept anything other than full 20% down payment for areas that could see some dramatic downward price pressure from nearly inevitable increased taxes...

This is what I've seen as well regarding rentals. That being said, I have multiple friends and family members who have had no issue whatsoever finding lenders willing to lend at higher than 80% LTV. I agree on taxes though, but with that said, property taxes have actually gone down since 2009 in both of my rentals in the city of chicago, and sales tax as well. Income tax is a different story, and who knows what the future holds with Chicago and Illinois in general being in such terrible shape.

[Bellamouse]

Originally Posted by chet everett

Further lenders are not eager to accept anything other than full 20% down payment for areas that could see some dramatic downward price pressure from nearly inevitable increased taxes...

Yeah, this is just patently false information. There is no restriction, property wise, on downpayment. If a person financially qualifies for a 3% down loan, they can have that loan on ANY property, anywhere (assuming it's owner-occupied), and assuming the property appraises out to the purchase price. But there are no banks that I know of (and I deal with about 40 lenders) who redline neighborhoods, or who have downpayment restrictions. I think that's illegal anyway.

[JL1585]

Anybody purchasing first time in the Chicago area? Whats your experience been like recently?