Hi Sonia, The Northwest Suburbs of Chicago are a wonderful place to live. Long term the single detached homes should prove to be a better investment. There are many nice single family homes, well within your price range. Be careful of falling into the trap of paying too much ,just because the home is newer. There are many better buys on the homes built in the 1960's in the Schaumburg area. Many have been remodeled and long term, you can even do some projects on your own, instead of paying for them over 30 years. The yards are big, schools are great, commutes are short-life is good. I personally have a nice older home in Schaumburg and we love it. The area and homes have great character. Let me know if you want a complete list with inside pictures.

Sonia, I'm looking to buy in Chicago, too, but my wife and I have recently decided to wait a year or two. Prices are quickly falling, and I think there is a real risk that any home you buy now will depreciate in value, causing you to lose your $35k in equity.

Those $450k homes that are currently out of your price range will be closer to your level in a year, so if you can stand renting for awhile (hard with two kids, I know), I would strongly recommend you consider it. Good luck to you and your family!

The answer is simple. If the sfh you like are out of your price range, then go with a townhome. The current market should not be your sole determining factor.

It depends on your age and life style you desire, Younger families, I would recommend your basic 3 bedrooms 2 bath 2 car garage SFH in a good location, Retirees I would recommend a nice condo in a community that offer lots of your favorite activities IE; swimming, golfing,.

If you are planning to spend 6 months in the Florida area (Winter Months) & 6 months in your perminent sfh, then a maintenance free townhouse might provide the ideal answer to carefree property managment.

In most cases a SFH is a better investment for appreciation and resale later. But it really depends on the area you are looking to buy in. Just be sure and look into the HOA dues. Sometimes those monthly fees will put your monthly payment higher than you were wanting your monthly payment to be.

Actually, we are prequalified for 300K house with 35-40K down. However, the areas in Chicago that we are looking at (western/northwestern subarbs) are pricey, and so the SFHs are older for that price range.
Newer single family homes in these areas run in the 400-450K price range, which we can't afford.

Every thing depends on what you need. A SFH has's it's privacy. Pride of ownership. Perhaps a easier monthly payment plan. A TH, perhaps, has a tighter community feel to it. Like a SFH you'll have your monthly mortgage payment, but also a monthly association fee. It comes down to what life style do you want. Only you can answer that question. I can find either for you. Are you pre-qualified?

I would probably say buy a single family home now. There are soooo many to choose from, and the prices are very very reachable. First and most importantly, get yourself a lender and get pre-approved so you know exactly how much you can afford. It is the best time to buy!!!!!
Good luck in your home search!

Sonia, neither SFH or TH are uniquely better than the other, especially for the purpose you describe.

Townhomes generally give you a bit more bang for your buck in terms of area inside the house, but SFH give you more outdoor area. Also, consider assessments, which are common with THs.

You should consider saving some cash to invest in a nicer home by getting a buy-side rebate. Check out http://www.seekingagents.com for details.

Sonia, get your financing in line first. See what you can afford and then search out location and then investigate what home options exist there. SFH vs TH pro and cons for both.

Thanks for the advice. Our main concern is that we have 2 young children, and so this would be a starter home for me and my family. As it is, we don't want to invest into something we can't handle (high mortage paymts, etc), especially living in the western Chicago subarbs where home prices are steep.

Many people don't realize that buying a town home is very similar to a buying a condo. With shared common areas and other sometimes sizable limitations to the Homeowner associations.

If you are looking for complete freedom for you and your family, a single family is the only way to go!

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I would go with a single family home- if you can afford it. You own the land so it will have more long term value.

Both have their advantages and disadvantages. If you purchase townhome you will have a monthly association fee that can run a couple of hundred dollars, where you can spend that money towards more home and towards your mortgage.
On the flip side, if you can find a real good deal on a townhome and don't mind the HOA fee every month which may include your insurance and landscaping.
But a Single family home will always be a single family home which gives you more control on your property. Right Now it's a Buyers market and I highly suggest a Single Family Home.