Home Buying in 60025>Question Details

Ming D, Home Buyer in Illinois

Does it make sense for us to sell a single family house in Glenview for a loss and buy a more expensive newly constructed townhouse in the Glen?

Asked by Ming D, Illinois Fri Jul 12, 2013

Which is a better long term investment? We think the pro of this move is we'll have more space, brand new exterior and interior, closer to train, less to maintain.The con is we will not have a yard, more monthly payment due to higher taxes, mortgage, and assessment. Our current house is close to 60 years old, if we stay here for another 20 to 30 years, we will need to pay a lot for the up keeping. But will the townhouse give us a lower return in 20 to 30 years? Will the Glen location help to give a higher return? Any advice is appreciated.

Help the community by answering this question:

Answers

10
Paul Cionczyk - Realtor/Broker’s answer
Ming,
You are asking many great questions. It seems like the big concern is the overall rate of return you will realize over a long duration. To really figure that out, you also need to consider what the Glen will be like 20-30 years from now. WIll it have the same, lesser or greater demand than today? 20-30 years from now, unless the townhome is updated during that time, it will most likely be considered outdated.

Your current home in Glenview, you can create an estimate of costs to expect if you were to stay there. Weigh that out against the opportunity cost of the added amount of money it will cost you to put down, finance, and put into association dues. You can use an excel spreadsheet to run your numbers.

If you have the option of living in either, think about what really fits your lifestyle. In the end your house is where you call home, where you go to relax, and where you create your memories. Where do you want to call home? The price difference should really not be the deciding factor.

Feel free to call/e-mail me if you need further help or would like to debate the pro's/cons. I live, work and sell in Glenview so will definitely enjoy the conversation :)

Paul Cionczyk
312-433-9931
PaulCionczyk.Broker@Gmail.com
0 votes Thank Flag Link Wed Jul 17, 2013
How did your dilemma resolve itself? Then Glen is becoming a better buy these days. I can tell you details why later. If you still require help, please let me know.
Karen Feldman
http://www.athomewithkaren.com
0 votes Thank Flag Link Tue Dec 24, 2013
Hi Ming,

All I can say is I live in The Glen and I love it. My wife and 3 boys love it as well. The Glen is a town within a town as everything is very convenient. There are very few communities like The Glen.

After this recent meltdown in the real estate market, the homes in The Glen came back sooner in price vs. the homes outside of The Glen in Glenview. I can't predict what it will be like in 20-30 years but as of right now the market in the Glen is hot. The demand to buy here is great.

So, sell now while prices are good and move to your new home!
0 votes Thank Flag Link Wed Aug 28, 2013
That would depend on your personal situation. There are many questions you should be asking yourself.
1. Does this change which schools your children will attend?
2. Is the change going to provide a better life for you and your family?
3. Can you afford to carry 2 mortgages if you rent your current home instead of selling?

Homes in the Glen offer newer construction and more modern amenities and are walking distance to shops and entertainment. Does your current home offer these opportunities. Property values in Glenview will continue to rise and now is a great time to sell because inventory is low however that will only benefit you of one of the two proposed transactions. Historically single family homes command a higher price than townhomes. You also need to remember is your looking at living in the townhome for 20-30 years it will not be new construction when you want to sell.
0 votes Thank Flag Link Sat Jul 13, 2013
Good morning,

What do you mean by "make sense"? Opinions vary, my favorite color is black and I imagine you have yours. I would not ask for other peoples opinion in determining my favorite color.

You mentioned investment, I would speak with a financial consultant, an accountant, and a local Realtor to see where the market is at now.

I have learned over the years a persons primary residence is more than just an investment, it is their home. I would factor that into my decision as well, maybe it is not the best investment but if it is what I really want to do....go for it.

Hope this helps, best of luck.

Spirit



Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@cox.net
http://www.TierraAntigua.com
0 votes Thank Flag Link Sat Jul 13, 2013
Dear Ming D,

What is more important to you? Long term return or comfort of easy maintenance of life and life style in the Glen?( It's best to have both I know, but we have to prepare for the worse and what is more important to you if only one can achieve)? If you enjoy putting money + time + some inconvenience in changing a older home to a more comfort living, current home may be good enough. But if you already feel the current home is not enough or your life style or career style may change, i.e. kids, out of town clients visits, travel to market... may be a newer and larger town house with space and parks, schools near by for a easy maintenance will give you peace while away from home?

I believe when reviewing purchase of home, we should not only review the finance and the house, but also our life style, neighborhood, and dream/hope and achievement. Investment is not only about money, I hope. ( Money helps, it buys us house, but what will make house more valuable is "home", a sweet home. )

One thing to remind you, regardless of your decision - don't stretch too much. Also, taking time to discuss with spouse and children to find out what is best for everyone. Have a clear goal and price you are willing to pay for the family (after discuss with your financial pro), tell the realtor you trust and evaluate your objectives with her/him, then go for it as a team.

A heart for your family, a heart for the community your family is in, a peaceful mind of taking the responsibility, a will plan to have the finance and family support, and know every effort you put in will have harvest, buying a dream home is a journey of joy and growth for entire family.

Good luck and Best wishes.

Juanita Soong in Glenview
0 votes Thank Flag Link Sat Jul 13, 2013
I recommend you call a realtor in your area to sit down with you and look at all the figures. Find out how much a realistic price would be if you sold your home and how much of a loss you would have to take on it and then figure out mortgage payments for the new home and the estimated rises in value for your current home and the area where you would want to move.

It is always good to work closely with a professional who can answer your questions and concerns.
0 votes Thank Flag Link Sat Jul 13, 2013
You don't mention the size of the loss you expect to have selling your existing home. There are many variables in your situation which cannot be addressed in this forum. You need to talk to a professional Realtor to discuss the specifics of your situation and the properties involved.
0 votes Thank Flag Link Sat Jul 13, 2013
Yes, the Glen will give a higher return than a 60 year old house in a less desirable area. If you stay in the 60 year old house , you might end up sinking a lot of moneyinto maintaining it, not improving it , but just maintaining. Im sure at The Glen certain things are included in the assessments, like exterior ,snow removal, lawn care, etc, which Im sure you are paying for now on your own. Now is the time to move before rates go up even more, its a good time to "trade up ". Call if you would like to discuss this further. 847-962-3850, Good luck !!
0 votes Thank Flag Link Sat Jul 13, 2013
The Glen is a highly desirable area that continues to maintain home values even in depressed times & Glen home values increase by greater amounts than other homes in good times. Glen home prices are up 12% over last year. Glen townhomes are a great investment. I live in the Glen & a Glenview community expert. Call for more info! 847-530-1906.
0 votes Thank Flag Link Fri Jul 12, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer