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Old 02-05-2016, 08:34 AM
 
Location: In the heights
37,135 posts, read 39,394,719 times
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This is all going to go a long way in keeping Chicago affordable--God Bless!
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Old 02-05-2016, 10:35 AM
 
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Default Well, that's one way to look at it...

Quote:
Originally Posted by OyCrumbler View Post
This is all going to go a long way in keeping Chicago affordable--God Bless!
There is a lot of cheap money for developers. The rents have risen, but it was just a few years ago that LOTS of the existing buildings had massive issues with underwater home owners and too many renters. Some folks are like the kid that keeps putting the hand on a hot stove and then cry about getting burned...

The most recent data about job creation shows that are far too few folks in actual full time work -- Ratio of Part-Time Employed Remains Higher Than the Pre-Recession Levels - dshort - Advisor Perspectives

People that do not earn enough to support themselves are NOT going to be able to afford fancy apartments with out help from mom & dad or other magical kinds of support.

Even worse, the actual PRODUCTIVITY shows no signs that even the people that are working have contributed to any tangible goods or services -- Robust Jobs and flat productivity: Who is fooling who?

In terms of the actual result of having lots of shiny new buildings it almost seems that developers are at risk of learning the wrong lessons from China -- The Unreal, Eerie Emptiness of China's 'Ghost Cities' | WIRED
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Old 02-05-2016, 11:27 AM
 
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Quote:
Originally Posted by OyCrumbler View Post
This is all going to go a long way in keeping Chicago affordable--God Bless!
Unless they all collude and keep the rates the same..just saying..
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Old 02-05-2016, 12:27 PM
 
Location: Chicago
4,688 posts, read 10,105,849 times
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Quote:
Originally Posted by logiclife View Post
Unless they all collude and keep the rates the same..just saying..
Even if that were feasible (and given the # large-scale rental companies, besides high #s of small-time landlords, its not) flat rents over a period of a couple years would be a sign of affordability. DC and Seattle are seeing it now after a few years of absorbing high # of units - a good thing for both cities overall, if not for individual property owners hoping to continue large rent increases by preventing new supply.
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Old 02-08-2016, 01:01 PM
 
22 posts, read 39,241 times
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Folks, I am looking at a condo in S Wabash that will have around 300 apartments units that will come up in 1 year or so, RIGHT next to the new condo building where I would like to buy. I was told that the apartments will be priced more. (like $3 or so per sq foot).

Dont you think its a bad idea to buy a condo right next to an apartment building with 300 units? I know I am looking for a 2bed 2bath condo to buy and I understand that all the apartment units would not be 2b/2ba.


Any insight from the experts is appreciated much as we are in a big dilemma? I know south loop is up and coming and lots of development projects in place..
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Old 02-08-2016, 01:18 PM
 
1,851 posts, read 2,170,961 times
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Quote:
Originally Posted by logiclife View Post
Folks, I am looking at a condo in S Wabash that will have around 300 apartments units that will come up in 1 year or so, RIGHT next to the new condo building where I would like to buy. I was told that the apartments will be priced more. (like $3 or so per sq foot).

Dont you think its a bad idea to buy a condo right next to an apartment building with 300 units? I know I am looking for a 2bed 2bath condo to buy and I understand that all the apartment units would not be 2b/2ba.


Any insight from the experts is appreciated much as we are in a big dilemma? I know south loop is up and coming and lots of development projects in place..
What's the issue with more housing coming online next door to this unit? More people = more money spent in the area which would typically indicate higher real estate values. I honestly don't see real estate in the Loop of all places crashing and burning. If you like the unit, I see no problem with rental properties near by...it is the city after all
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Old 02-08-2016, 03:40 PM
 
Location: Chicago
89 posts, read 264,747 times
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Quote:
Originally Posted by logiclife View Post
Folks, I am looking at a condo in S Wabash that will have around 300 apartments units that will come up in 1 year or so, RIGHT next to the new condo building where I would like to buy. I was told that the apartments will be priced more. (like $3 or so per sq foot).

Dont you think its a bad idea to buy a condo right next to an apartment building with 300 units? I know I am looking for a 2bed 2bath condo to buy and I understand that all the apartment units would not be 2b/2ba.


Any insight from the experts is appreciated much as we are in a big dilemma? I know south loop is up and coming and lots of development projects in place..
What will rental prices be in this new building? What would rent be for the unit you are considering?

If the unit you are considering will be in competition with the brand-new building next door, that's a very bad thing. However, if your unit would be the somewhat less desirable but more affordable option, and you really won't be competing for the same tenants as the new building, it could be a good buy. The new building will attract attention to the immediate area, but there will be people who just can't afford it- that's where you come in.

However, new construction next door to any condo building can create a sell-off if a significant portion of units are losing their previously unobstructed views. This can negatively affect property values throughout the building, even in units whose views will not be impacted.
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Old 02-08-2016, 05:19 PM
 
22 posts, read 39,241 times
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Thanks @Irishillini and @Anne C M

The rental prices next door will be apparently, $3 per square foot. . The condo I am looking to buy next door has NO amenities (no gym no pool, no club house etc ) . But if the apartment building has amenities next door then the condo I want to rent for the next few years would be renting for less I suppose.

The apartment outside shell is already up. So no surprises there for current residents when it comes to views I believe, unless they started that apt build next door after they sold half of the condos. lol. (sorry, not funny..I know)

I know there are many developments coming in south loop, so time will only if we have enough demand. Either way, I am concerned with the apt building right next door to this condo building. Very strange why anyone would do that.
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Old 02-08-2016, 06:55 PM
 
Location: Chicago
4,688 posts, read 10,105,849 times
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Quote:
Originally Posted by logiclife View Post

I know there are many developments coming in south loop, so time will only if we have enough demand. Either way, I am concerned with the apt building right next door to this condo building. Very strange why anyone would do that.
What is strange about it? That's basically what the South Loop is?
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Old 02-08-2016, 07:38 PM
 
4,152 posts, read 7,940,693 times
Reputation: 2727
It makes little sense to buy and rent out a condo anywhere in Chicagoland unless you own it already for another reason and can't sell it. There are probably thousands of people doing this already. When you figure in the HOA fees it does not really make a whole lot of sense plus when you add on the fact that many condo boards prohibit rental units or severely restrict them, only allowing rentals for hardships, and then they watch over them like a hawk, its a bad idea. Condos that allow rentals to come and go freely won't be as desirable anyway.
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