Should I buy now in the city? (Chicago, Schaumburg: real estate market, lease)

[dieschweiz]

I am a recent single transplant to the area. Moved here 7 months ago and have been living in NW burbs. I work near Schaumburg, with salary in the 6 figures. I am thinking about buying a condo in Lincoln Park because I want to be closer to all the wonderful things that the city has to offer, minus the crime part. I have good credit rating and can afford to put down 20% for anything up to $700k.

Is buying a condo a good idea at this point in time? Specifically:

1) What is the commuting going to be like?
2) What about property taxes, and appreciation? I plan to stay in there for about 5 years.

Any words of wisdom?

[cvatasoiu]

This is a very good time to buy because sellers offer incentives and the prices are below market value. Once this real estate market stabilizes ( prediction is beginning of 2008) prices will go up. To answer your question about commuting. Depending on when you start work, worst traffic going to Schaumburg while driving is between 6:30 and 9:00. Metra is an option but you have to find out if it services the vicinity of where you work.

To answer the second question in terms of appreciation, Lincoln Park is established in its appreciation and value. What I mean is that you get the annual 6% (aprox) appreciation increase vs other neighborhoods like South Loop and River North that appreciate at about 11% yearly. Neighborhoods are a matter of preference as well. At your price point, River North is a much better, newer, full of choices neighborhood and you get more for your money.

Again, it matters if you like to be close to the hippest nightlife in Chicago (restaurants, clubs) or you prefer vintage and a more settled neighborhood. Tax increase is currently being debated, but we will experience one in the near future.

When comparing to taxes in the suburbs, they don't differ by much, but you get more square footage for your dollar in the suburbs. You have the Homeowner exemption in Chicago which you qualify for only for your primary residence. So instead of paying full tax during the year, you pay less (the longer you live in a place the higher the exemption; and it is calculated by the assessors office based on assessed value of your place), but then you received a smaller income tax return at the end of the year. It evens out. It is a matter of how you manage your finances.

I hope this answers some of your questions.

[Drover]

Before you buy in Lincoln Park, rent there for a year first. Lincoln Park to Schaumburg is a killer commute unless you get to set your own hours. It's enough to wear down even the most dedicated urban sophisticates, make them plead "Uncle!" and beat a path for the suburbs or an outer-ring city neighborhood. Do that commute for a year and see if you want to do it for several more years. Once you buy in, you can't just wait until a lease expires to get out if you decide you've had enough of the commute.

Since access to the city's amenities is your primary motivation, consider looking in a neighborhood along the Kennedy that's approximately equidistant from downtown and Schaumburg, starting (east to west) at about the Mayfair neighborhood, Jefferson Park, Norwood Park/Old Norwood Park/Union Ridge, Oriole Park, Harwood Heights (technically a suburb but surrounded by the city on 3 and a half sides), and the O'Hare area. You won't be living right in the middle of the action, but you'll have relatively quick and convenient access to several nightlife areas by car (if you want to fight parking) or by public transportation. The CTA Blue Line can take you to Belmont where you can catch a bus to Lakeview or Fullerton where you can catch a bus to Lincoln Park. Or it can take you directly to Bucktown and Wicker Park. Cabs are also pretty easy from both stations, particularly Fullerton.

My wife works in Schaumburg, and I go to school downtown. We settled on an "in-between" neighborhood as a compromise. It has worked out pretty well for both of us. I'm only a few minutes away from the neighborhoods/venues/hotspots that I like to frequent, our rent is cheaper, and while I got the better end of the deal, the commute is at least manageable for both of us.

[HappyHero]

Drover, how far and long is your wife's commute??

I will be working in elk grove - right next to schaumburg i believe.

I'm leaning toward a jefferson park which would shorten the commute a little i believe.

[Drover]

Depending on traffic conditions, her commute is anywhere from half an hour to an hour-plus. That said, the inbound commute on Friday afternoons is ALWAYS over an hour, no matter what time of day she heads home. Thankfully, she only works every other Friday. I'd say an average commute for her is about 45 minutes. We could shave about 10 minutes off of that by moving to Jefferson Park, but you'd probably have to add that right back on if you're commuting to Elk Grove.

[Avengerfire]

Hopefully the OP waited and bought sometime in the last year!

[Avengerfire]

Originally Posted by cvatasoiu

This is a very good time to buy because sellers offer incentives and the prices are below market value. Once this real estate market stabilizes ( prediction is beginning of 2008) prices will go up...

My oh my how that was wrong!!! I wonder who made that prediction!

[oakparkdude]

Originally Posted by Avengerfire

My oh my how that was wrong!!! I wonder who made that prediction!

For real estate professionals, its always a good time to buy. Caveat Emptor.

[Avengerfire]

Originally Posted by oakparkdude

For real estate professionals, its always a good time to buy. Caveat Emptor.

Yeah I know.

[Irishtom29]

I love renting in this city but I wouldn't buy; I'm afraid the facade will crumble and the whole place will go to Hell.