Talk to me about taxes (Chicago, Evanston: crime, private school, salary)

[Taco1234]

Originally Posted by My Kind Of Town

Understood. I'm just throwing caution to the wind that buying in situations where the market is in the middle or towards the back end of a strong bear run (no one knows exactly when this is until it hits) also carries its own levels of risk. I don't think many people looking to these hot real estate markets are acknowledging this risk (reminds me of the mindset in 2003-2006 for some of these markets). Nothing like buying that Apple stock at $125/share when everything was looking up, up, up on its way to over $130/share only to quickly fall back down to below $100/share in a matter of 6 months.

I agree. We aren't interested tho because of it's hotness. Sure that makes it attractive in terms of amenities and things to do, but we were more enthralled by the beauty, weather, and tax situation. I've lived in a concrete jungle my whole life. A change sounded good, then we fell in love and decided to go for it.

[numberfive]

Originally Posted by JJski

We once moved away from our typical core downtown... Got a lot more house and still great schools - AND HATED IT... But we are krazy like that and have to be walking distance... Regardless of state pay attention to micro location...

Nothing crazy about that! Lots of city mice wouldn't be happy in the suburbs. We're suburb mice, and we would be miserable living in Chicago proper.

[My Kind Of Town]

Originally Posted by numberfive

Pull all the links you'd like, it doesn't mean you understand my point.

The ratio of income to housing affordability is more favorable in Nashville than Chicago. This has been shown to you on several occasions (see the MiMi index as an example). The Chicago metro is #93/100, Nashville is #1. It has nothing to do with what I love or don't. I didn't bribe FreddieMac to refute you.

But for what it's worth, I love Chicago AND Nashville. You keep trying to twist this into me hating the Chicagoland area. Keep on trying and failing that crusade, it's not working.

I won't argue that Nashville is more "affordable" than Chicago. Agreed. However, affordability does not necessarily equate to a "good investment" if the definition of a good investment is making money on one's home purchase.

[Taco1234]

Originally Posted by My Kind Of Town

I won't argue that Nashville is more "affordable" than Chicago. Agreed. However, affordability does not necessarily equate to a "good investment" if the definition of a good investment is making money on one's home purchase.

We're all just going in circles. But, I vote for a city data road trip to Nashville and you'll all be packing your bags

In The Spotlight | Franklin, Tennessee - Rooted in Americana

[numberfive]

Originally Posted by My Kind Of Town

I won't argue that Nashville is more "affordable" than Chicago. Agreed. However, affordability does not necessarily equate to a "good investment" if the definition of a good investment is making money on one's home purchase.

I'm not a real estate investor. The only way I equate housing to "good investing" is freeing up money tied in housing to be used for much better gains.

In other words, I'd rather have a $1600 PITI payment and use the other $1000/mo for investing instead of that $1000 going poof to property taxes.

[My Kind Of Town]

Originally Posted by numberfive

I'm not a real estate investor. The only way I equate housing to "good investing" is freeing up money tied in housing to be used for much better gains.

In other words, I'd rather have a $1600 PITI payment and use the other $1000/mo for investing instead of that $1000 going poof to property taxes.

Can't argue with that which is why we bought an updated but modest (in terms of size) home in an excellent area with relatively low property taxes. After refinancing a couple years back our PITI is ~$1800/month. I consider that a good investment. It works for us for now. Eventually (probably 3-4 years from now) we will look to adding another bedroom, bathroom and formal dining room.

[damba]

RE question on additions.

I completely get adding a BR/BA, but is there any decent return on adding a formal dining room? Just curious. Most people I know rarely use such spaces, even in their larger homes. YMMV.

cheers

Originally Posted by My Kind Of Town

Can't argue with that which is why we bought an updated but modest (in terms of size) home in an excellent area with relatively low property taxes. After refinancing a couple years back our PITI is ~$1800/month. I consider that a good investment. It works for us for now. Eventually (probably 3-4 years from now) we will look to adding another bedroom, bathroom and formal dining room.

[My Kind Of Town]

Originally Posted by damba

RE question on additions.

I completely get adding a BR/BA, but is there any decent return on adding a formal dining room? Just curious. Most people I know rarely use such spaces, even in their larger homes. YMMV.
J
cheers

For us it's less about the return and more about enlarging/extending the kitchen into the current combined dining area. This would allow us to add a small eat in kitchen area or island and then we would add a formal dining room off the other end of the kitchen, which would end up taking the guest bedroom as a result (so technically we'd have to add 2 bedrooms to the two existing bedrooms in order to have 4 total). We always sit down as a family to eat dinner and we also love to entertain so a formal dining room is becoming a near necessity for us. I can see how some families wouldn't use it though if they had a large eat in area.

[damba]

Originally Posted by My Kind Of Town

For us it's less about the return and more about enlarging/extending the kitchen into the current combined dining area. This would allow us to add a small eat in kitchen area or island and then we would add a formal dining room off the other end of the kitchen, which would end up taking the guest bedroom as a result (so technically we'd have to add 2 bedrooms to the two existing bedrooms in order to have 4 total). We always sit down as a family to eat dinner and we also love to entertain so a formal dining room is becoming a near necessity for us. I can see how some families wouldn't use it though if they had a large eat in area.

Yeah, that about nails it. The built in eating areas with islands, etc.
pretty much eclipse the need to bother with formal dining spaces,
spare the rare massive holiday gathering for most families.

cheers

[RJA29]

Originally Posted by numberfive

My retired parents stand to increase their income by about $18k a year by relocating from IL. $8k from property taxes, $10k from using the excess home equity after they sell their home.

For different reasons, my wife will take a 25% pay cut, my salary remains the same (working remote), so we come out ahead by about $20k/year.

No need to double your salary before it becomes advantageous to move.

Originally Posted by Taco1234

Heck, you don't even need to double your salary. Between savings from no state tax and low property tax bills (and lower everything else) even if I keep a similar salary and my husbands goes up a little, we'll be so far ahead it will be ridiculous. This is type of house we'd probably buy:

https://www.redfin.com/TN/Franklin/4.../home/87880194 With a whopping mortgage payment of 2300! Haven't paid that little for housing in years. Plus great schools, etc.... Sure, no walk to town but that's ok. It'll force me to cook more! Like today, I can't tear myself away from the temptation to walk to downtown Lagrange and have lunch at francescas (blowing $40). I will miss their desserts though

Taco - that's a beautiful house. But I personally can't have a situation where I need to drive ~40 minutes to get to work (very young children at home).

numberfive - with two working adults in our household, and not paying for private school, we'd have to find all of the following, which is why we're here in the first place

1) good schools
2) a location near transit or under a 20 minute drive to work
3) SFH under 400K

and

4) jobs

It's really #4 that is the kicker. A 25% pay cut would more than erase whatever we pay in property taxes and a higher housing costs.

Best of luck, though!