South Loop for a few years, or leave for suburbs? (Chicago: 2014, rental)

[silvertonesx24]

My wife and I are contemplating whether or not to stay in the city for a little longer and buy a 2/3br condo in the South Loop, or leave for a large house in the suburbs. We have a newborn so we're about 3-5 years before needing some serious space.

Specifically, we're looking at the Wells St area / future Riverline district. Values in the area have held steady and not grown much over the past few years, which is concerning for our short outlook. With so much development there and so many units coming on the market in this area, is that good or bad from an ownership perspective?

Only interested in purchase options as I'm tired of paying rent and have the cash to buy.

[damba]

Originally Posted by silvertonesx24

My wife and I are contemplating whether or not to stay in the city for a little longer and buy a 2/3br condo in the South Loop, or leave for a large house in the suburbs. We have a newborn so we're about 3-5 years before needing some serious space.

Specifically, we're looking at the Wells St area / future Riverline district. Values in the area have held steady and not grown much over the past few years, which is concerning for our short outlook. With so much development there and so many units coming on the market in this area, is that good or bad from an ownership perspective?

Only interested in purchase options as I'm tired of paying rent and have the cash to buy.

Look at schools. Arguably, your same tax money would go farther in the suburbs. Buying a condo now then selling so quickly might only be breaking even at best. YMMV

[chet everett]

I would go farther than damba -- while he says the OP with 3-5 timeline "might only break even" I would say that with transaction costs, HOA fees, property taxes they'd be LUCKY to break-even.

I would encourage anybody currently renting in the South Loop (or any other area) to carefully use the best data they can get and plug that into the wonderful NYT calculator -- https://www.nytimes.com/interactive/...alculator.html

Given the ease with which Chicago has allowed developers to add condos and rental units to the mix in the South Loop there is no indication that existing condos will appreciate to any extent. The shift towards much smaller scale buildings suggests demand is already softening -- https://chicago.curbed.com/2017/2/15...velopment-news

[silvertonesx24]

We'll be using private schools so that's not an issue. RE in IL is a losing investment as a homeowner, I'm more concerned with risking my equity and being stuck in 3-5 years when we need more space.

[damba]

Originally Posted by silvertonesx24

We'll be using private schools so that's not an issue. RE in IL is a losing investment as a homeowner, I'm more concerned with risking my equity and being stuck in 3-5 years when we need more space.

Sounds like you have answered your own questions, at least partially. Keep in mind that even if you personally do not enroll your child in public schools, it's in your best interest to not ignore where and how your property taxes are being utilized.

I would cut to the chase and start building your home equity now, relocating to a desired larger home. Metra could provide excellent access to a downtown office if needed.