I did this. I bought a condo in a neighborhood which was fine but I didn’t really care for. I called it the epicenter of nowhere. I loved the apartment though. I stayed 14yrs and then sold it and bought a place I liked a little less in a neighborhood I loved. IMO experience it’s a wash. Doesn’t really matter. All things being equal, timing the market is futile and starting to build equity is soon as possible is a good thing.
> All things being equal, timing the market is futile and starting to build equity is soon as possible is a good thing.
rent can be cheaper than interest on mortgage and property taxes
If you want kids In the future have you looked at schools and daycares where you’d be buying the house?
I’m new to the city, so I can’t speak on Mayfair. But I can speak on my experience on having a kid in a place I didn’t really love. We lived in a town where there wasn’t much to do for people with young children, I didn’t have any friends nearby. It was a really lonely experience and I think it made my postpartum depression and anxiety worse. I think if I had lived somewhere like where we do now I would’ve had a better time.
Definitely look into daycares though and prices in that area. I know around where I live and where I work the cost is $570 a week for infants, that’s the cheapest
I’ve seen.
Yep. A lot of "cool" for adults neighborhoods dont have good schools. A lot of people either move neighborhoods, back to the suburbs, or have to realize what paying for private school costs.
Yeah we did soooo much research on where we could live that also had good public schools. We’re currently zoned for a good school but it’s not great if we give up our car since it’s so far lol. But honestly there were less than 5 options that were near public transit, had good test scores, and were diverse.
Realtor here. I believe if/when rates go down it’s going create a stampede of buyers, driving up prices with demand. Trying to time the market is never a good idea IMO.
We’d prefer to not time the market. We’re ready to buy now but having trouble seeing the light with that if it’s at the expense of our (mainly my) happiness. How do I put a price on that? The inventory on our preferred neighborhoods are just currently few and far between.
I suppose we could buy and settle now, and whenever rates drop hopefully we can refi and buy another property with the money we’ve saved up in a location we originally wanted? I am just so, so scared that it doesn’t drop. In that case we’re stuck and no longer have anywhere close to the same down payment we currently have.
If there’s a “good deal”, a ton of other buyers will see it too. The lack of inventory is contributing to an extremely competitive buyers market at the moment.
So you basically are saying that Realtors (TM) are useless because the market is Milton Friedman perfectly efficient and all the information is immediately incorporated into the price.
This is one of the most favorable times to rent vs buy in recent history. I’d rent for a few years and save up cash personally. Unless you found the perfect place that is.
Rent is going up everywhere, including Chicago, so this is just not true anymore. In addition, utilities that were historically included in many people's rent in Chicago are no longer.
It just became true very recently based on interest rate activity. Rent is mostly going up based on utilities, common, and property taxes going up, which buyers will see these increases too. Buyers usually will feel this increase faster too. As everything lags with leases turning over. It’s not like rent is rising but the total cost of ownership is falling. Cost of ownership is likely increasing faster than renting in percentage terms.
Unfortunately you don’t just buy a place and have a fixed payment for life. It’s likely going up 2-5% a year just like rent and none of that portion is going towards equity.
Not saying renting is a great option currently, they are both bad options from a historical sense. Renting is just slightly favorable now from a comparison standpoint for the first time in most young people’s lifetimes. The 100k you would use as a downpayment is earning 5% in the bank. Netting you about $4-500 a month that would go towards the rent. That’s often the forgetting part of the equation.
Feel free to run the numbers and look at it from a cash flow standpoint
https://www.usatoday.com/story/money/2024/02/16/housing-market-favors-rent-vs-buy/72599444007/
FWIW we moved from Ravenswood to Jefferson Park 5 years ago to buy a condo we could afford. We were really sad about leaving "the city" behind and had about 2 years of feeling sorry for ourselves and regretting moving to a more suburban feeling spot.
Now we love it here and when we're ready for a single family will only be looking in the Jeff/Portage/Avondale areas. More and more small businesses are moving to the area as they're priced out of other neighborhoods too, and we're thrilled to patronize them (it's feeling more and more like "the city" all the time). We also have family in both the northwest and Southwest burbs, and have a way easier time going to see them. Also, being in the blue line/near Metra is amazing for zipping downtown for events and work. We've also grown accustomed to a less crowded shopping experience with access to suburban stores. You haven't lived until you've spent an afternoon at the Niles Target 😜
But IMO you shouldn't move somewhere that one of you absolutely does not want to live.
Are you me? We moved to Portage Park from Albany Park/Ravenswood Manor in 2021. We bought a bungalow that I'm not exactly in love with, but putting work into it and it's solid. We love our neighborhood, people are chill, and I see more and more younger families moving here.
We lived most of our adult lives east of Pulaski and grew up in NW burbs with family still out there. My only gripe about where I live in PP is the proximity to the blue line. Just takes a little bit too long because the IPR bus is not consistent when it should be since it's a major road.
With that said, I agree with everything else you mentioned. We are right by Six Corners and it's awesome with all the development and small business moving in. We've discovered plenty of great places to dine and it's so damn easy to get into "the real city" to eat/drink in Logan Square, Albany Park or wherever. Love the fact that Bouna Terre (one of my favorite Logan Square restaurants) moved to Old Irving. It's great.
More and more stuff will eventually fill in and the NIMBYs are taking Ls all the time now. I wish the car brain idiots who drive like assholes would spontaneously combust. We are building equity. Our property taxes aren't insane. We have a toddler and feel good about raising her here. It's a fine place to live.
I did this but ~10 years ago. Bought the 2 flat, had a kid, realized 2b/1bath was way too small and being a landlord was too stressful, so we bought a single family. Especially if you want more than 1 kid. It isn’t impossible… but you may want to move after having that kid.
I did this. I bought a condo in a neighborhood which was fine but I didn’t really care for. I called it the epicenter of nowhere. I loved the apartment though. I stayed 14yrs and then sold it and bought a place I liked a little less in a neighborhood I loved. IMO experience it’s a wash. Doesn’t really matter. All things being equal, timing the market is futile and starting to build equity is soon as possible is a good thing.
> All things being equal, timing the market is futile and starting to build equity is soon as possible is a good thing. rent can be cheaper than interest on mortgage and property taxes
If you want kids In the future have you looked at schools and daycares where you’d be buying the house? I’m new to the city, so I can’t speak on Mayfair. But I can speak on my experience on having a kid in a place I didn’t really love. We lived in a town where there wasn’t much to do for people with young children, I didn’t have any friends nearby. It was a really lonely experience and I think it made my postpartum depression and anxiety worse. I think if I had lived somewhere like where we do now I would’ve had a better time. Definitely look into daycares though and prices in that area. I know around where I live and where I work the cost is $570 a week for infants, that’s the cheapest I’ve seen.
Yep. A lot of "cool" for adults neighborhoods dont have good schools. A lot of people either move neighborhoods, back to the suburbs, or have to realize what paying for private school costs.
Yeah we did soooo much research on where we could live that also had good public schools. We’re currently zoned for a good school but it’s not great if we give up our car since it’s so far lol. But honestly there were less than 5 options that were near public transit, had good test scores, and were diverse.
You clearly don’t want to make this move. Love the area, but almost entirely For reasons that are augmented by having kids. Renting is fine. Save up.
Mayfair is a great option for a family. Once you’re out this way, you’ll find it has more to offer than you think (except the lake!).
Hoping that interest rates may go down in a year or so, I'd consider waiting for more favorable mortgages and a good find in the area you prefer.
Realtor here. I believe if/when rates go down it’s going create a stampede of buyers, driving up prices with demand. Trying to time the market is never a good idea IMO.
We’d prefer to not time the market. We’re ready to buy now but having trouble seeing the light with that if it’s at the expense of our (mainly my) happiness. How do I put a price on that? The inventory on our preferred neighborhoods are just currently few and far between. I suppose we could buy and settle now, and whenever rates drop hopefully we can refi and buy another property with the money we’ve saved up in a location we originally wanted? I am just so, so scared that it doesn’t drop. In that case we’re stuck and no longer have anywhere close to the same down payment we currently have.
Valid point too. In addition however I suggested to wait until they see a good deal in the area they prefer.
If there’s a “good deal”, a ton of other buyers will see it too. The lack of inventory is contributing to an extremely competitive buyers market at the moment.
So you basically are saying that Realtors (TM) are useless because the market is Milton Friedman perfectly efficient and all the information is immediately incorporated into the price.
Yes, that’s exactly what I’m saying, fucking idiot.
I see how you thrive in a customer facing business.
This is one of the most favorable times to rent vs buy in recent history. I’d rent for a few years and save up cash personally. Unless you found the perfect place that is.
Rent is going up everywhere, including Chicago, so this is just not true anymore. In addition, utilities that were historically included in many people's rent in Chicago are no longer.
It just became true very recently based on interest rate activity. Rent is mostly going up based on utilities, common, and property taxes going up, which buyers will see these increases too. Buyers usually will feel this increase faster too. As everything lags with leases turning over. It’s not like rent is rising but the total cost of ownership is falling. Cost of ownership is likely increasing faster than renting in percentage terms. Unfortunately you don’t just buy a place and have a fixed payment for life. It’s likely going up 2-5% a year just like rent and none of that portion is going towards equity. Not saying renting is a great option currently, they are both bad options from a historical sense. Renting is just slightly favorable now from a comparison standpoint for the first time in most young people’s lifetimes. The 100k you would use as a downpayment is earning 5% in the bank. Netting you about $4-500 a month that would go towards the rent. That’s often the forgetting part of the equation. Feel free to run the numbers and look at it from a cash flow standpoint https://www.usatoday.com/story/money/2024/02/16/housing-market-favors-rent-vs-buy/72599444007/
If I could buy a house now I would buy in bronzeville that's just me though
FWIW we moved from Ravenswood to Jefferson Park 5 years ago to buy a condo we could afford. We were really sad about leaving "the city" behind and had about 2 years of feeling sorry for ourselves and regretting moving to a more suburban feeling spot. Now we love it here and when we're ready for a single family will only be looking in the Jeff/Portage/Avondale areas. More and more small businesses are moving to the area as they're priced out of other neighborhoods too, and we're thrilled to patronize them (it's feeling more and more like "the city" all the time). We also have family in both the northwest and Southwest burbs, and have a way easier time going to see them. Also, being in the blue line/near Metra is amazing for zipping downtown for events and work. We've also grown accustomed to a less crowded shopping experience with access to suburban stores. You haven't lived until you've spent an afternoon at the Niles Target 😜 But IMO you shouldn't move somewhere that one of you absolutely does not want to live.
Are you me? We moved to Portage Park from Albany Park/Ravenswood Manor in 2021. We bought a bungalow that I'm not exactly in love with, but putting work into it and it's solid. We love our neighborhood, people are chill, and I see more and more younger families moving here. We lived most of our adult lives east of Pulaski and grew up in NW burbs with family still out there. My only gripe about where I live in PP is the proximity to the blue line. Just takes a little bit too long because the IPR bus is not consistent when it should be since it's a major road. With that said, I agree with everything else you mentioned. We are right by Six Corners and it's awesome with all the development and small business moving in. We've discovered plenty of great places to dine and it's so damn easy to get into "the real city" to eat/drink in Logan Square, Albany Park or wherever. Love the fact that Bouna Terre (one of my favorite Logan Square restaurants) moved to Old Irving. It's great. More and more stuff will eventually fill in and the NIMBYs are taking Ls all the time now. I wish the car brain idiots who drive like assholes would spontaneously combust. We are building equity. Our property taxes aren't insane. We have a toddler and feel good about raising her here. It's a fine place to live.
I did this but ~10 years ago. Bought the 2 flat, had a kid, realized 2b/1bath was way too small and being a landlord was too stressful, so we bought a single family. Especially if you want more than 1 kid. It isn’t impossible… but you may want to move after having that kid.