Home Buying in Hinsdale>Question Details

Undecided, Home Buyer in Hinsdale, IL

If we are planning to stay for 2-3 years, does it make sense to buy a home in the Hinsdale area, or rent?

Asked by Undecided, Hinsdale, IL Thu Jun 17, 2010

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12
Anna Brocco’s answer
Unfortunately, a decision only you can make based on your finances, wants, lifestyle--It’s all about costs and lifestyle. Costs—financing v. moving-in, mortgage v. rent, repairs v. upkeep. Lifestyle—stability v. mobility, predictability v. flexibility, equity v. freedom from debt. It used to be all about equity. Now, there are other variables to consider in the balancing of the buy/rent equation. You decide.
0 votes Thank Flag Link Mon Jun 21, 2010
My answer is purchase. Rents are high and scarce. With interest rates being at an all time low, you may find it makes more $$ to purchase. The economy is improving and the inventory of homes for sale is very low. As a result, that will drive the prices up..."supply and demand".
That could mean a slight return on your investment not to mention the tax benefits of home ownership.
Home ownership offers freedom to make decorating choices, to have pets and just feel relaxed that this is your own home. You are not subject to someones rules and mandates
It still is the great American dream!!!
0 votes Thank Flag Link Thu May 16, 2013
Rent, commissions and taxes will kill you....
0 votes Thank Flag Link Sun Mar 31, 2013
If you are only planning on living in the home for 2-3 years I would plan on renting. It is unlikely that home prices will rise much in the next 3 years. Renting will allow you to be much more flexible since you are not looking to live in the property too long.
0 votes Thank Flag Link Thu Dec 8, 2011
Undecided, you indicate you plan to stay for 2-3 years. As if I am in your shoes, a couple of questions to be answered in your planning process:

Are you moving, selling and buying again after 2-3 years?
Would you keep the Hinsdale home as a second home or an investment, rental property?

I echo the First Answer from "Voices Member" that you may lose money on a short stay. Unless you are purchasing with cash, the first 5 years of owning a home with a mortgage are largely interest payments rather than reducing principal balance of the money loaned to you to complete the purchase.
0 votes Thank Flag Link Sat Oct 9, 2010
There are finance calculators if you search on line rent vs buying, maybe that will help you decide what is best for you and your situation.
0 votes Thank Flag Link Tue Oct 5, 2010
Find a real estate agent if you don't have one already. Ask for a Rent vs Buy analysis. I usually run 2 versions, 1 very conservative and 1 aggressive. Most of the time for 3 years, it will be cheaper to buy (even assuming resale costs). It will depend on your situation which will be better for 2-3 years.
0 votes Thank Flag Link Mon Jun 21, 2010
The one negative for renters that I have seen in Hinsdale this year, is that since sales have increased, more owners would rather sell than rent. Therefore, supply of rental homes are down.
In an unstable market, location holds up best. Hinsdale itself is a great location - quick train ride to the city, easy access to I-294, I-55, and O'Hare and Midway Airports. Location matters inside Hinsdale as well - there are areas in Hinsdale that hold their value better than others. If you do decide to buy, just make sure to buy a really great location in Hinsdale!
0 votes Thank Flag Link Mon Jun 21, 2010
Undecided,

One of the good things about Hinsdale is that it didn't get hit as bad as most other local towns. Hinsdale and Western Springs is down, overall in values but when this market turns around I would be pretty confident that Hinsdale and Western Springs will lead the way.

My only concern is "when" will it turn around? That's the million dollar question.
0 votes Thank Flag Link Fri Jun 18, 2010
There are some great opportunities to buy a home right now, if you are willing to accept a home that is not in perfect shape. Additionally, I would say that a lot depends on the price range that you are looking at. Are you looking at a home that can use conventional financing (with a mortgage under $417K), or something higher?

You also have to weigh the pluses and minuses of renting. Here are some of the minuses most people don't think about: If you rent, you may need to move again after 1 year, or the landlord could substantially raise the rent. Even a multiple year lease may not protect you. I have seen many tenants who have to move because the landlord was not making mortgage payments and the home they were renting was foreclosed on.

Mike Hagen
Investment Property Specialist
Evergreen Real Estate
0 votes Thank Flag Link Fri Jun 18, 2010
Dear Undecided,
asking that question shows "smarts"...it's a great question. Here's a website to help you make a better decision...there's some great info and tools (rent vs buy calculators, etc)...just follow the link:
http://envision3m.com/buy-versus-rent.html

If you buy, will your home increase in value in the next 3 years? Most "experts" agree that we are at, or near, rock bottom. Of course, they've been saying that for 2 years. Market values are expected to rebound by 2013 in the Chicago metro area. Hinsdale is an attractive area so you may be OK...I would go in with the thought that your home's value would be the same in 3 years...maybe a slight increase.

For more info, you can email me at ncoleman@envision3m.com or call me at 708-597-8884. Neil Coleman
Web Reference: http://www.envision3m.com
0 votes Thank Flag Link Fri Jun 18, 2010
Most of the time you will lose money on a stay so short. The real problem is closing costs and realtor fees when selling. It is possible house prices could increase by 45% in 3 years, but it is exceptionally unlikely.

Does it make more economic sense to rent or buy? Using your numbers find out which way below.
http://www.trulia.com/blog/dan_chase/2010/01/does_it_make_mo…

Why renting at a higher monthly cost could be the cheapest way out. A very different look at things below.
http://www.trulia.com/blog/dan_chase/2010/02/why_rent_if_you…

Consider some reasons to wait to buy a house.
http://www.trulia.com/blog/dan_chase/2010/01/10_valid_reason…

Do low interest rates make it a good time to buy? Maybe not, consider the blog below and the comments also.
http://www.trulia.com/blog/dan_chase/2010/01/do_low_interest…

It comes down to monthly cost, including repairs, heat, taxes, insurance and so on compared to cost per month to rent. Then add in closing costs and realtor fees to sell. Consider the risk of being unable to sell and move away easily when the time comes and make a decision.
0 votes Thank Flag Link Thu Jun 17, 2010
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