Hopper, Other/Just Looking in Near North Side, Chi...

Need 2 bed/2 bath in G Coast/River N area for 5 months out of the year. Plan on this for next 10 yrs. Would you buy or rent furnished for 5 mos.?

Asked by Hopper, Near North Side, Chicago, IL Sat Oct 16, 2010

Currently renting 2/2 in R North for $4k per month.

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Grandpa Al’s answer
This is probably out of date but just to let the world know-- I have a two bedroom/2 bath condo in Lakeview on Lake Shore Drive, with full views of Lake Michigan from every room but the baths and kitchen. Very easy cab, xpress bus transportation and indoor parking and 24 hour reception desk.

I only use it 4-5 months each year so I would consider renting it out furnished, with heat, ac, internet, and semi-upgraded cable for $3200 per month.
0 votes Thank Flag Link Sat Nov 5, 2011
Hi there, Hopper.
Since you plan to be a long-term investor and clearly have 4k/month (since you are paying that in rent now) to spend housing monthly, based on the small amount of information we have about your situation, buying seems to be the best option for you.
As has been said here, it is a buyer's market, interest rates are incredibly low (if you plan to finance a purchase), and if you are a highly qualified buyer, you are likely to get a good price.
Additionally, you should consider the "other" benefits of home ownership - the intangible ones.
You should definitely speak with a Gold Coast real estate agent and a mortgage expert about your financing options and what you are looking for. You may also want to speak with your accountant about the tax benefits of home ownership.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Oct 20, 2010
I think buying could be worth your while, IF you can figure out a profitable way to get some income for the 7months out of the year you wont be in town. There are some possibilities out there like short term leases, etc, but they would probably be risky, since they are short term. I also think finding a place, every year, for only 5 months furnished would be difficult.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes Thank Flag Link Sun Oct 17, 2010

If necessity is the mother of invention you may find that your necessity is to purchase. Why? Inventory that responds to your need time wise is in all likelihood short term or vacation rentals. From my experience in this category pricing that responds to your cap in the area you desire will be limited mainly to one bedroom condos. Two bed condos will price higher and, if you are able to find a place that works for you, will vary year by year and may vary month by month. Having said this your timeline is somewhat meaningless if your own because your ability to rent will be curtailed. One respondent indicated many buildings will not allow leases of less than six months. True. Many more only allow one year leases and some have limitations as to how often you can rent.

Is it a good time to buy in the area you desire? In a word, very good. Actually, that's two words. I suppose because a single word doesn't truly reflect how positive the market it is for buyers now. And having said this, find an agent with whom you relate who will shoot straight with you, help you sift through the dung to find the diamonds. If that's me, great. If someone else, best of luck. There's plenty to choose from.

Happy hunting.

Tom McCarey
The Real Estate Lounge Chicago with @properties

Expertise in Negotiation, Buyers' Representation, and Luxury Home Marketing
Over $100 Million Dollars of Personally Negotiated Transactions
0 votes Thank Flag Link Sat Oct 16, 2010
I am sure a dozen agents will suggest to buy, but I think you need to do some good math. Yes you can get a good deal now and in 10 years you should have a nice profit, but can you deduct the costs? Do you need this for work? Who pays for the costs....assessment/taxes/mortgage for the other 7 months of the year? Can you rent it to others for perhaps 6 months.......yes, but probably only furnished and probably not every year.
Many buildings do not allow rentals for less than 6mo or 1 year so you need to check before you buy.
If you rent each year you will probably pay 3K or more for a furnished unit and you will probably be in a different building every year and will have to deal with finding something each year. Some buildings require a 6mo minimum for furnished rentals. Those that do not often want more $$$ to compensate although it might depend on what time of the year you need it. Winter is easier, Spring/Summer is harder.
You should probably have an agent send you the options for both rent and buy to see what you think.
0 votes Thank Flag Link Sat Oct 16, 2010
BUY. Rates are ridiculously low and so are prices. It will earn you equity in the long run. I work with many in-town clients and I would say almost all have purchased. Renting just throws your money away and in this type of market, you should take advantage of the opportunities.

Call me if you need assistance.

Nathan Skillicorn
0 votes Thank Flag Link Sat Oct 16, 2010
Will be hard to find a furnished apartment for 5 months every year affordably. Depending on your financial situation it might be better to buy and rent out for the other 6 or 7 months.

With low interest rates and amazing short sale and foreclosure opportunities if you can buy its a great time to load up on real estate!

If you would like to discuss search parameters give me a call or send an email.

Best of luck!

Eric Marcus
Your Real Friend in Chicago Real Estate
0 votes Thank Flag Link Sat Oct 16, 2010
With rates and prices to low, now is a great time to buy! I would be happy to answer any questions and assist you with your search.
Kathryn Schrage
Realtor Associate
Jameson Real Estate
0 votes Thank Flag Link Sat Oct 16, 2010
I would definitely buy, if we can find you something that offers same quality of life for less. Let me know if you want me to try.
Ryan Gossett
0 votes Thank Flag Link Sat Oct 16, 2010
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