Buy vs rent- i will be living in uptown for the next 3 years

Asked by Tarjoadi, Chicago, IL Mon Mar 17, 2014

Hi,

Could you please give me your advice?

I will be living in uptown chicago 60640 for the next 3 years.
What is best: buy a 1 bedroom apt around 75k or find rent around 1000 per month?

I know there are many factors like buying/selling costs.

Pls let me know

Thanks

Help the community by answering this question:

+ web reference
Web reference:

Answers

10
Jeff Nobleza, Agent, Evanston, IL
Fri Mar 21, 2014
There's some good comments below. What is not mentioned in your response below and above is the potential appreciation on the unit you plan to purchase. No one has a crystal ball to accurately predict this. However, I feel there are some methods you can use to predict this and you should consider this in your decision making process. Also, not mentioned below are some of the tax benefits involved in owning this property as both a primary residence and an investment property should you choose to rent it later.

Interview a few realtors and work with out that can be guide you.
0 votes
Steve Burgess, , San Juan Capistrano, CA
Thu Mar 20, 2014
Well i would suggest you to go for buying option, as this will help you to get the desired home with current rate applied. Since its a known fact that property rates has been climbing high with each passing year. That is why it is better to buy the home you are looking forward too, also ensure you do the market research to get the housing loan with a low rate of interest.
0 votes
Seth Captain, Agent, Chicago, IL
Wed Mar 19, 2014
You mention Uptown and 60640. This zip code includes parts of much pricier Andersonville and what some might call Ravenswood North. There are huge differences in demand (and rent/buy) here versus what many would call Uptown (east of Clark, south of Lawrence, north of Montrose)

One factor to consider when buying is do you want to take risk? There are lots one bedrooms to buy and people have been waiting a generation for Uptown to change.

A good option to consider is buying with the intention to rent after you move out, but you need to check the following:
Are rentals allowed and how many, and is there a wait list?
What are your monthly assessments? Do not buy a place with high monthlies (you should never be over $300 even with heat for your budget)
Are you willing to deal with a renter?

I saw somebody mention about renting being easy. It is true! If you can afford the rent, and you don't know what you are going to be doing in a few years AND you are risk averse, just rent and forget about it.

But if you buy a condo at the lower end of the price spectrum, and current rents exceed your total monthly payment, you have a relatively safe investment.

Good luck.
0 votes
joy.r.sinegar, , Chicago, IL
Wed Mar 19, 2014
I agree with everyone here who said "BUY". Purchasing a property has many benefits besides a place to live. When you are ready to move, you could rent it out and make money off of it. Additionally, you could choose to sell it and make back your money invested. I think purchasing is going to be the best option for you. Go for it!
0 votes
Scott Newman, Agent, Chicago, IL
Wed Mar 19, 2014
Not even a contest...buy!!!

A $75K mortgage costs $400/month plus let's say $250 assessments and $100 taxes for a grand total of $750/month. Right there you save about $10K over 3 years.

Plus don't forget the tax breaks which should be around another $2/year which is another $6k.

3 years renting = giving away about $16,000 plus you don't get to make the equity if the home appreciates in value before you sell so you could be talking about losing well over $25K.

Call me- we can help!!
0 votes
Klud Klud, Home Buyer, Chicago, IL
Tue Mar 18, 2014
For three years - you're better off renting. I've been trying to buy in the area, and the prices are above what I believe it worthy of Uptown; average selling price for Edgewater is 180K. Some parts of it are still pretty sketchy. That being said - new developments, which will be taking place over the next few years, are bound to jack up the prices for all of Edgewater. This would mean that your initial investment could pan out nicely, in a few years. Good luck, either way.
0 votes
I disagree strongly- see my response above.
Flag Wed Mar 19, 2014
Matt Laricy, Agent, Chicago, IL
Mon Mar 17, 2014
If your going to live there two years or less, rent Anytime more, buy. Right now prices are going up and rents are at an all time high. What is renting getting you other than paying the other persons mortgage. Get your self a good investment as well as some tax help and buy a place.
0 votes
Akos Straub, Agent, Chicago, IL
Mon Mar 17, 2014
Buying is the way to go and I can show you how. There are amazing rent v buy calculators out there, e.g. ny times. Feel free to call me to chat at 312-730-8719.
0 votes
I used the ny times calculator and it shows that buying is the best option only after 3-4 years. If you buy you have the monthly assessment fee of $450 + taxes.
You have the closing fees when you buy (around 3%) and the closing fees when you sell it (around 7%).
Maybe I am missing something, buy for 3 years it is better to rent.
Not to mention that once you decide to sell, the apartment will be on the market for at least 3-4 months (only the closing is 2 months). During this time the apartment is empty, but u continue to pay for it.
Pls let me know if I am wrong
Flag Mon Mar 17, 2014
Douglas Boehm, Agent, Chicago, IL
Mon Mar 17, 2014
I have rented and owned. Renting is a lot less stress. If you buy you have to pay taxes, assessments and probably a broker to sell your place. There are also a lot of fees with buying a place. Repairs are also an owners problem bur not a renters.

I have found some clients places in uptown for rent for a bit over $1000. If you want to contact me I can help you find a good place.

Doug Boehm
Best Chicago Properties
dougb@bestchicagoproperties.com
0 votes
Mike Opyd, Agent, Chicago, IL
Mon Mar 17, 2014
Buy now if you can afford to. Prices across Chicago are going up. Its better than throwing away $36K. Reach out to a lender and have them go over the numbers with you. If you'd like a referral let me know.
0 votes
I used the ny times calculator and it shows that buying is the best option only after 3-4 years. If you buy you have the monthly assessment fee of $450 + taxes.
You have the closing fees when you buy (around 3%) and the closing fees when you sell it (around 7%).
Maybe I am missing something, buy for 3 years it is better to rent.
Not to mention that once you decide to sell, the apartment will be on the market for at least 3-4 months (only the closing is 2 months). During this time the apartment is empty, but u continue to pay for it.
Pls let me know if I am wrong
Flag Mon Mar 17, 2014
Search Advice
Search
Ask our community a question

Email me when…

Learn more