how long do people rent until they buy?

[b0nb0n]

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.

The people that I know have been real estate investors for 20+ years and have made millions on real estate, and are making a ton of money in today's market so I trust their opinions-but they are all just opinions after all...it's true that no one knows for sure. Although for me personally, I'm taking their advice and waiting a few years but I'm in no rush and want to explore the city before I settle down in one place anyway. Also as far as condos go assessments can end up being higher then the actual mortgage and on top of that there's tax...it all ends up being a lot.

[j33]

I've been renting for 10 years, but then again my rent has never been over $650, so it really doesn't make a whole lot of sense for me to buy. I don't plan on buying anytime in the near future, but I'm saving up some money, so we'll see.

[jdiddy]

Originally Posted by chet everett

No offense long101, but if you could have bought ANYTHING just about anywhere in a desirable part of Chicago (or an established suburb) 5-6 years ago you would STILL be very much in POSITIIVE gains, can't say that for more than a very small handful of specific equities...

The last 5-6 years were also an extreme historical anomoly, so I wouldn't use that as a basis for comparison. I don't know when prices will hit bottom, but I do know that once they do, they will not begin increasing anywhere near the rates they did 2000-2006.

The New York Times > Week in Review > Image > Graphic: A History of Home Values

[Lookout Kid]

Originally Posted by jdiddy

The last 5-6 years were also an extreme historical anomoly, so I wouldn't use that as a basis for comparison. I don't know when prices will hit bottom, but I do know that once they do, they will not begin increasing anywhere near the rates they did 2000-2006.

The New York Times > Week in Review > Image > Graphic: A History of Home Values

True in some respects... But Chicago's market wasn't such a historical anomaly, and was only moderately overpriced in comparison to income levels.

[Avengerfire]

Originally Posted by j33

I've been renting for 10 years, but then again my rent has never been over $650, so it really doesn't make a whole lot of sense for me to buy. I don't plan on buying anytime in the near future, but I'm saving up some money, so we'll see.

Me too. I have never had rent over $650 and I have been renting the majority of the last 15 years.

[Avengerfire]

Originally Posted by jdiddy

The last 5-6 years were also an extreme historical anomoly, so I wouldn't use that as a basis for comparison. I don't know when prices will hit bottom, but I do know that once they do, they will not begin increasing anywhere near the rates they did 2000-2006.

The New York Times > Week in Review > Image > Graphic: A History of Home Values

I fully agree.

[Bideshi]

Originally Posted by aragx6

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?

I expect you would continue on in denial and wishful thinking. Meanwhile I need to scout out a good vacant house to squat.

[mr aztec]

Originally Posted by jessiegirl_98

I graduated college in 2002 and moved to Chicago. I was in graduate school until 2008 (for a PhD). I rented the entire time throughout school and when I graduated and both my fiance and I had "real jobs" we bought right away (in August). I know properties may depreciate a bit, but we also aren't planning on selling right away. It's still great to buy if you know you want to keep it for at least 3-5 years. BTW, we are also paying (even with taxes) exactly what we would be paying if we rented. The only difference is our assessments each month, which do include heat and are relatively low.
I think for each person you need to determine how much you can afford and what makes the most sense to you (e.g., I wouldn't buy expecting a quick return)

I think the 3-5 year guide is long gone. I recommend using more of a 7-10 year rule of thumb. Unless you are seeing 10% appreciation, its very difficult to break even after commissions and moving costs over 3 years. And if you are using a 7 year give or take as a guide, make sure there is enough room if your family expands.