Rg, Home Buyer in Chicago, IL

2 br 2 ba in R D659 at Randolph and Desplaines for approx 390K 35K for parking. Good investment?

Asked by Rg, Chicago, IL Thu Sep 27, 2007

I am purchasing a 2 bedroom, 2 bath condo in R D659 on a mid floor (of a 17 floor building) for approximately $390K plus $35K for parking. I plan on moving to a bigger place in approximately 5 years. Is this a good investment? What type of appreciation should I expect to see?

Separately, how much does it make sense to upgrade the unit? What areas should I focus my upgrade budget on?



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0 votes Thank Flag Link Tue Sep 1, 2009
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.

Web Reference: http://www.KDRchicago.com
0 votes Thank Flag Link Wed Oct 3, 2007
RD659 is a great project in the booming West Loop. You will have no problem renting it out and it will appreciate very fast. My brokerage, @properties is marketing the project and it is selling very fast. The developer also struck a deal with National City Mortgage and you get 1.5 point off the current mortgage rate. E-mail me if you need details about the building. Cristina@atproperties.com. Upgrades should always go to kitchen and bath. Appreciation is aprox 11% yearly for the West Loop.
0 votes Thank Flag Link Fri Sep 28, 2007
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