Rent vs Buy in Chicago>Question Details

Willprow, Home Buyer in Chicago, IL

should I rent or should I own?

Asked by Willprow, Chicago, IL Sun Oct 17, 2010

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11
Robert Pratt’s answer
A really good place for you to begin in your search for the answer to this question is with a mortgage lender (assuming you plan to finance a potential home purchase). A mortgage lender will be able to assist you in assessing your buying power - what your price point will be and how much monthly payment you can afford.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Oct 20, 2010
First step is to contact a lender that will run the figures on the amount you are qualified to purchase in a home. A home is the most financial purchase that you will make in your life, make sure that you will be able to handle not only the mortgage but other expenses and commitments that are incurred with homeownership. Location and type of home would be the next consideration and a real estate broker can help in you with providing information that will help you make the the right decision for you and your family. Debbie Bergthold-Smith Classic Real Estate 708-267-5552
0 votes Thank Flag Link Fri Aug 9, 2013
I all depends if you can qualify for a loan at a low rate and great deal on a house.
0 votes Thank Flag Link Sun Oct 17, 2010
Great question! As a Realtor with 10 years of experience, a large percentage of my clients have purchased for livelihood reasons as opposed to purchasing for investment. For those folks it was a good time to buy at the time they bought because they wanted the stability and advantages of owning and did not necessarily plan on moving for a long time. The investment aspect was implied but not the driving force.

With that said, I consider myself an optimistic person and I can tell you that during that time selling real estate that there was not one year that I really did not believe that it was not a "great time to buy". It is really not until you look back at the rise and fall of the real estate market can you see what were good and bad times to buy. We will be able to make that same determination about 2010 two years from now.

What I am telling my clients who ask me that question today is RENT now and sign no longer than a 1 year lease. During the rental period, we can pursue great real estate purchasing opportunities as they present themselves, but with less pressure(better negotiating position). My viewpoint is that home prices will drop more into 2011. There is a massive shadow inventory of foreclosures coupled with underemployed and/or unemployed homeowners who are or will be attempting short sales. With the vast supply of distressed properties yet to be sifted through, the real estate market has a lot of shaking out to do.

I would be happy to share more, but I could go on and on...
0 votes Thank Flag Link Sun Oct 17, 2010
To rent or buy, is a decision only you can make based on your finances, wants, needs, lifestyle, duration of stay, etc.; you decide....
0 votes Thank Flag Link Sun Oct 17, 2010
Hi Willprow:

Any answer we give here would be pure speculation unless we know a lot about your personal situation. However, a good place to start figuring things out would be on the Freddie Mac "Rent vs. Buy" calculator at the top of the web page linked to below.

Best,
Ron
0 votes Thank Flag Link Sun Oct 17, 2010
Its tough to say without knowing more about your particular situation. What I can say, is that if your looking to live in this place for the next 5 years, then I would say now is a good time to buy. Low prices, tons of inventory, motivated sellers, and low interest rates. Go out and get a good buyers agent to help you out. This way you have someone to guide you through the buying process at no cost to you.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
0 votes Thank Flag Link Sun Oct 17, 2010
It is certainly time to buy. With recent price drops and VERY low interest rates it simply could not be much better. Good luck to you.
0 votes Thank Flag Link Sun Oct 17, 2010
Buy in this market. Sell in an up market. Rent if your lifestyle dictates the need.
0 votes Thank Flag Link Sun Oct 17, 2010
It's a great time to buy IF you can get a mortgage and IF you feel comfortable with your job and IF you plan to keep what you buy for 5+ years. Otherwise perhaps renting can work until you can because prices will not be increasing very much for the next 2-4 years from the way it looks now.
However, the market will imporve and when it does, both interest rates and prices will start to rise and you will not be able to afford as much of a property then as you can now.
You should probaly ask a couple of agents to send you listings based on what you want and where you want it to see if anything even looks interesting to you.
My web site has a few lender references if you need and you can search the MLS from my site if you want to look around on your own.
0 votes Thank Flag Link Sun Oct 17, 2010
Great question Willprow... I wrote a multi part blog about this topic. This will help you go through the decision making process. I have included the link below.

Also I have another blog on top 10 Credit myths. You might find that useful as well.
0 votes Thank Flag Link Sun Oct 17, 2010
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