BEST ANSWER
Hi Rg,
I assume that you plan to continue owning the unit when you move in 5 years and rent it. If so, you need to take into consideration all of your costs associated with owning the condo such as taxes and assessments in addition to your monthly mortgage payments to determine your monthly expenses. Have you researched rents for the location? How much of your expenses will be recouped by the rent? You may have a monthly carrying cost that you'll have to absorb. Depending on where you move to in 5 years, will you be in a position to continue to pay for this property and purchase another?
Appreciation in Chicago and the West Loop has been solid but nobody can predict how the market will appreciate over the next 5 years.
I would upgrade the unit in the kitchen and baths so that you have a marketable unit upon resale. With bigger buildings in such locations you also need to take into consideration the views and exposure and whether that will impact value for future buyers/renters. You should also check the Condo Documents for any restrictions on renting units and how many of the units in the building can be owned by investors and rented.
Best of luck.
Ken.
Wed Oct 3 2007, 23:40