Living in Chicago Part time - How to make it work

[wjj]

Originally Posted by Master Jay

Good morning....

And is it TRUE, that it is actually cheaper on property taxes to live within COOK County, versus LAKE County?

And as an outsider I have to ask: Are other taxes (thinking SALES taxes) different in those 2 counties??

Thank you....

Yes and yes.

Real estate taxes are higher in Lake County than in Cook County.

Sales taxes are lower in Lake County than in Cook County.

Buffalo Grove is a good example since it is in both counties. The sales tax on the Cook County side is 10% while it is 8% on the Lake County side.

Many factors come into play with real estate taxes, but in general, real estate taxes on the Lake County side of BG are around 3% of FMV. Closer to 2.5% of FMV on the Cook County side.

Each county assesses property differently and applies rates differently. Schools play a big role. I don't know all of the details, but a family member lives in Palatine in a comparable house as mine that are within $10K in value of one another, and their real estate taxes are usually $1,500 to $2,000 less than mine. Just an anecdotal observation but seems to be generally the case. I know in BG where the same builder built the same houses on either side of Lake Cook Road, real estate taxes on the Cook County houses are less than the same houses on the Lake County side pretty much across the board.

I'm sure there is someone on here who can explain the assessment methodology differences in each county that results in lower real estate tax rates in Cook vs Lake.

[Master Jay]

wjj, thank you so much to take the time to answer my questions.

I appreciate that.

Have a great weekend!

[OKParker]

OP - I would buy! Your options to AirBNB (pricey) or to on rent a place with a 12 year lease (wasting 3/4 of the weeks) - wouldn't be as good as buying a condo right downtown for ~185-225k that you finance with a monthly payment of 1400-1800 would allow you to always have a place to stay and be able to airbnb your property with a manager so that you make it a free stay + investment. I will do the same thing one day in a few years once I live summers out of town.

https://www.redfin.com/IL/Chicago/30.../home/14100577
https://www.redfin.com/IL/Chicago/44.../home/12596274
https://www.redfin.com/IL/Chicago/53.../home/18953346

[emathias]

I was an Airbnb host for ten years and also recommend going that route. That also enables you to try different areas in the city.

[Gemini1963]

I do not (at all) deny that the airbnb route makes the most financial sense. It is costly and burdensome to set up (and later, unwind) the rental apartment in one's non-residence city. BUT I have to say (having done it), that I can relate to OP's desire to try to set up his own place. And in that interim period, when you HAVE made it work, it is extremely great to walk into your own place, set up the way you like it, whenever you come to town. I even kept a week's worth of clothes there (mostly thrift-store purchased), and non-perishable foods. Then all I had to do was go grocery shopping to get the things I wanted for that week. It really was as much fun as I'd thought it would be.

But yes, it is a costly experiment, especially when compared with the airbnb approach.

[Berteau]

Originally Posted by Don Cuccino

Buying at the peak of a housing market is generally not a good idea. We are at a peak or very near it.

The value of my house has gone up 20% since people were telling me housing has peaked. The same people were also saying people won’t move back to the cities post COVID. You don’t have a crystal ball.

[thefallensrvnge]

Airbnb route sounds reasonable, especially to shop around different neighborhoods to find what's best for you. I would recommend living in the city and leaving your car in Nashville to fly instead. You're lucky because the two locations you want to commute from have accessible airports with direct flights. I often visit my family in Kansas City (every month during the holidays) and having a credit card to rack up airline points on and taking transit around the city and to the airports has worked well for me the last couple of years. When I fly back to KC, I just use my car or a family member's car to get around.

[Kmanshouse]

Originally Posted by Don Cuccino

Buying at the peak of a housing market is generally not a good idea. We are at a peak or very near it.

The city's prices tend to be suppressed in peak times. So while it may be "peak"...peak here isn't the same.