Rent or buy? Good deal and a good time to buy? (Chicago: real estate, rental homes)

[xycrazy]

I‘m wondering with the recent market craziness and the already started slow down if now‘s a good time to buy.
I‘m new to the area and concerned about resale value in Chicagoland, particularly in NW suburbs. I‘m not saying NW suburbs are bad (they aren’t at all), I‘m saying I don’t know if I can trust the Chicagoland market and don’t know what to expect when I have to sell the house at a certain point.

I know that some homes in even pretty neighborhoods in Palatine e.g. didn’t sell 2 years ago for whatever reason. Maybe because they weren’t in WM Fremd HS district.

Anyway… I‘m concerned that we now buy (even if we would get a very good deal) and lose our money over time because we ultimately have to sell it for less.

We don’t know yet if we stay in the area for longer than 4 years. We like it so far but you never know.
It‘s hard to find decent rental homes though (and we’re tired of moving every 2 years) and so we thought we‘re going to to buy something but now we‘re not sure anymore if that’s a smart move. We finally found a 5780 SQFT home (3800 SQFT + Basement) in LZ/Deer Park/ Kildeer area, which is clearly too big for us but we got a very good deal and so the purchase price is even significantly less than for some homes half the size. The location is great, schools are great (Lake Zurich HS) and it has a pool. We need to fix a few big ticket things though.

With that in mind we‘re now scared of resale value and ongoing costs for maintenance / energy. I assume costs are significantly higher than for a house half the size. Or do you think the difference is not that big?

Due to these concerns we‘re wondering if we‘re going to make a mistake and rather should rent as we wouldn’t have to take the resale risk, the maintenance hassle, and the higher costs.

We feel stuck and are looking for your thoughts.
Thank u!

[G in MP]

I wouldn't buy right this minute, especially if you're looking to sell within 5 years. It's a seller's market now, you're not going to get a good deal.

[ToriaT]

Maybe wait until next spring and see what the market brings. Its never a good idea to keep renting. I've been buying and living in houses in the Chicago area all my life and I've never sold one at a loss and mostly sold at a much higher price. I tend to stay in one place for a long time though. I've lived in or owned all the places for at least 10 years. Mostly you are the ones deciding to move. Just don't do it. Moving around every few years is costly. Why do it?

[BOBNCHI]

We don’t know yet if we stay in the area for longer than 4 years. We like it so far but you never know.....

If there is any doubt, especially with this short time frame, don't.

[xycrazy]

Thanks @Bobnchi but can you explain why?

[Hiruko]

Originally Posted by xycrazy

Thanks @Bobnchi but can you explain why?

The market is volatile and returns on real estate in Chicagoland have historically been very poor over the last few decades.

[chicagoRE]

Can I ask what neighborhood? I also live in this area and know the market/area well and can likely give you an idea. There are certain neighborhoods where homes sell no matter what kind of market we are in.

[chicagoRE]

But also agree that we are in a seller's market and prices have jumped signifigantly in this area. You are not going to get a deal.

[xycrazy]

Don‘t wanna expose myself here so I can‘t really name the neighborhood. What neighborhoods are selling well based on your experience no matter what kind of market we‘re in

[Hiruko]

Originally Posted by xycrazy

Don‘t wanna expose myself here so I can‘t really name the neighborhood. What neighborhoods are selling well based on your experience no matter what kind of market we‘re in

There are more than 9 million people in Chicagoland. The chances of you being revealed are slim-to-none unless you put your full name on here.