Preparing for my move back to Chicago (Lincoln: lease, condos)

[Gtownoe]

I am finally starting to prepare for my move back to Chicago. I was in the city for 4 months so I know the areas I would like living in. I'm in the beginning stages of looking for a place (I don't move until the 2nd week of May) and am just wanting to make sure I have the best resources available.

I know that I want to live in either the Wicker Park, Uptown, Lakeview, or Lincoln Park areas and I will be making around 50-60k which will likely go up pretty significantly every year after.

As far as my income goes would you suggest buying or renting (I know the housing market in the city is very stable and would probably expect prices to rise in the next 5 years).

Any feedback would be appreciated.

[Drover]

The primary benefit to renting for a newcomer is to get to know the city for a while and then choose a neighborhood. Since you've already got that part worked out, I guess it really comes down to a matter of a) how long do you plan to be in Chicago, and b) can you afford to buy? If you plan to be in Chicago for the long-term, go ahead and look into buying. I do have to wonder, however, if you'll be able to afford anything worthwhile in the places you suggest; the average purchase price in those areas is in the neighborhood of half a million dollars. If indeed you expect your income to rise substantially year after year, you may want to wait a couple of years before buying unless you've got a big chunk of equity you can bring with you. The market is stable but relatively stagnant, so home prices will probably wait a couple of years and give your income a chance to catch up.

An alternative might be to consider other nearby neighborhoods, such as Logan Square or Ravenswood. You may be able to find something more manageable there. Another place to consider is the South Loop where there's such a huge glut of new condos that you can pick up a decent starter pad for around 200 grand.

[aragx6]

You can buy a one bedroom in Wicker Park for 275k. Not cheap, but it certainly can be done under half a million.

If you really will be making significantly more money 3 years from now I would probably wait and save, but I wouldn't be at all surprised to see condos costing 5% or more than they do now, because I really do think the market is within a year of being at the bottom.

That's all just opinion though. I would probably suggest looking around. if you fall in love with a place you can afford, go ahead and buy it. if not, wait.

[Lookout Kid]

You'll never time the bottom of the market no matter how hard you try, so I would only suggest buying a place if (1) you can afford to do it with a fixed-rate mortgage, and (2) you plan on staying there for at least five years. Good luck!

[Gtownoe]

Thanks for all of the help. And feedback.

I do plan on being in the city for an extended period of time 10+ years. I also am pretty familiar with much of the city and have found the areas that I like and would be looking to invest in.

Thanks again for the feedback. ONe option that I have thought of would be to find a 6 month lease and then use that window of time to weigh in and evaluate whether or not I should buy.

[Avengerfire]

Originally Posted by Gtownoe

Thanks for all of the help. And feedback.

I do plan on being in the city for an extended period of time 10+ years. I also am pretty familiar with much of the city and have found the areas that I like and would be looking to invest in.

Thanks again for the feedback. ONe option that I have thought of would be to find a 6 month lease and then use that window of time to weigh in and evaluate whether or not I should buy.

If you can find a short term lease and do just that, that would be the best option. I would buy this year. Prices are down and probably will fall a bit more.