how long do people rent until they buy? (Chicago, Time: condos, mortgage)

[Lookout Kid]

Originally Posted by long101

Personally about 2 years ago I was about to buy a place which was selling for 325k at 6.5%. Well today that place would probaly go for about 200k with a 5% loan...

Why do people keep VASTLY overestimating the price drops in Chicago? This type of depreciation hasn't ocurred anywhere around here. The worst I've heard for condos is 20% off the 2006-07 peak prices, but that's not even typical.

[long101]

Originally Posted by Lookout Kid

Why do people keep VASTLY overestimating the price drops in Chicago? This type of depreciation hasn't ocurred anywhere around here. The worst I've heard for condos is 20% off the 2006-07 peak prices, but that's not even typical.

that was in a burb. I would say the avg chicago drop is around 7%

[mstengle]

Just purchased in Vernon Hills condo- for $140K-foreclosure. Appraised at $220K- my mortgage payment is less than I was paying for rent (in Forest Park dump)- with little money down. (not including taxes). I do have to pay taxes-BUT my out of pocket investment was $4k- how can I lose? I was even kicked back the first year taxes at closing BTW. The deals are out there- I love this place - better yet- no landlord.

[Attrill]

Originally Posted by long101

that was in a burb. I would say the avg chicago drop is around 7%

Redfin does a great job of compiling and analyzing data for the Chicago area and Chicago neighborhoods.


Chicago area numbers for October were:

Month to Month: Down 1.6%
Year to Year: Down 10.8%
Change from Peak: Down 13.7%

Chicago condo prices seem to be down 6%

[b0nb0n]

It varies on the person, on your need and on your finances. if you are a single young person i say rent in a few different areas where you can be close to the nightlife and not be tied down to one place. if you have a family, need a house or need a lot of space and wanna be in the same place for 2+yrs then you can buy. I know a lot of real estate investors and they all say that the market will go down another 10percent or so in the next 4 yrs in Chicago before the market starts picking up, of course you can always find a good foreclosure deal.

[Bideshi]

Rent until it's cheaper to buy and don't forget upkeep and property taxes. Also make sure you will never have to leave the area, ie lose your job.

[Lookout Kid]

Originally Posted by b0nb0n

It varies on the person, on your need and on your finances. if you are a single young person i say rent in a few different areas where you can be close to the nightlife and not be tied down to one place. if you have a family, need a house or need a lot of space and wanna be in the same place for 2+yrs then you can buy. I know a lot of real estate investors and they all say that the market will go down another 10percent or so in the next 4 yrs in Chicago before the market starts picking up, of course you can always find a good foreclosure deal.

Anyone who says they know how much the market will go up/down in the future and when the bottom will occur is totally full of $hit. There are so many armchair experts on this issue, yet the real experts are baffled. That should tell you something.

[Bideshi]

Originally Posted by Lookout Kid

Anyone who says they know how much the market will go up/down in the future and when the bottom will occur is totally full of $hit. There are so many armchair experts on this issue, yet the real experts are baffled. That should tell you something.

Well, millions of vacant houses, apartments, strip malls and office space tells me prices have a long way to go down before a bottom. They may never recover in our life time. Wake up, the boat has hit an iceberg and it is going all the way down.

[aragx6]

Originally Posted by Bideshi

Well, millions of vacant houses, apartments, strip malls and office space tells me prices have a long way to go down before a bottom. They may never recover in our life time. Wake up, the boat has hit an iceberg and it is going all the way down.

Well thank God we have the world-famous economist Bideshi here to talk some sense into us. What would we do without your insight and depth of knowledge?

[UnderTheLiveOaks]

I, for one, have been in Chicago for 5 years and still rent. I see no reason to buy, as I have a good deal of uncertainty in my future. I'm getting a good deal on my apartment, and live in a much nicer area than I could afford to buy in at the moment.