Buying Condo Thoughts (if living for 1-2 yrs)

[dtcbnd03]

Originally Posted by RamenAddict

? I was not talking about the Great Lakes. I’m from Florida and AFAIK, my hometown has experienced flooding during regular storms since my parents moved there 50 years ago. I know people throughout the state who have experienced multiple floods in their homes as well. This is not something that is going to be sustainable longterm, as homeowners insurance rates there are already outrageous.

We could probably make this a separate thread but climate change is real and its impact on housing choices will come up sooner rather than later. One example is the huge migration to Arizona despite serious lack of water. Chicago may benefit when tides change but Chicago was also built on a Marsh and Lake Michigan just hit record levels in 2020 so we're not immune. Here's an article from Wired concerning the more frequent droughts / wildfires out West pushing some people to move east...if these become more frequent homes will become uninsurable requiring people to look at other areas.

https://www.wired.com/story/as-clima...within-the-us/

[TBideon]

Whatever the timeline of climate change and the Midwest's supposed renaissance after the coasts drown and heat makes the southwest unlivable, we can agree it probably won't be in the next five years.

So if someone wants to buy, do it now before Blackstone and foreign investors overbid by $50,000 and exclude prospective buyers.

[Gaylord_Focker]

Let’s say civil unrest leads to looting and my building gets damaged. Is it likely that my hoa goes up to pay for the damages?

[TBideon]

Depends on the building insurance and amount of damage.

Some of my building is still boarded due to a complicated relationship with our downstairs tenant's estate, but I didn't notice any significant HOA jumps (2/3 percent a year seems pretty normal). Certainly there were no special assessments.

There's always a possibility the hoodrats will terrorize cities again; it's just a risk we take with buying in downtowns and neighborhoods.

[Gaylord_Focker]

Originally Posted by TBideon

Depends on the building insurance and amount of damage.

Some of my building is still boarded due to a complicated relationship with our downstairs tenant's estate, but I didn't notice any significant HOA jumps (2/3 percent a year seems pretty normal). Certainly there were no special assessments.

There's always a possibility the hoodrats will terrorize cities again; it's just a risk we take with buying in downtowns and neighborhoods.

Thanks. Are you downtown now?

[TBideon]

Printer's Row.

[Gaylord_Focker]

Originally Posted by TBideon

Printer's Row.

We're at the early stages of looking for a 2 or 3 br condo downtown.

[BRU67]

Originally Posted by Gaylord_Focker

We're at the early stages of looking for a 2 or 3 br condo downtown.

https://therealdeal.com/chicago/2022...r-sells-condo/

Interesting case study. Bought in '05 for 390k. Sold in '22 for 410k. Adjusting to real dollars, he lost over $164,000. Ouch! That's gonna leave a mark if you're not a multimillionaire like he is.

And that's the hot West Loop. Imagine if he bought in the South Loop. I don't know if even a former pro athlete could absorb that kind of loss.

We need another renaissance like we had from 1985 to 2001. Otherwise, I think condos are going to be a very tough investment.

[ChiGuy2.5]

Originally Posted by BRU67

https://therealdeal.com/chicago/2022...r-sells-condo/

Interesting case study. Bought in '05 for 390k. Sold in '22 for 410k. Adjusting to real dollars, he lost over $164,000. Ouch! That's gonna leave a mark if you're not a multimillionaire like he is.

And that's the hot West Loop. Imagine if he bought in the South Loop. I don't know if even a former pro athlete could absorb that kind of loss.

We need another renaissance like we had from 1985 to 2001. Otherwise, I think condos are going to be a very tough investment.

I bought my condo back in 2013 for 146k. I'd have a hard time getting much more than that today. Property taxes, HOA dues and everything has gone up so much it's hard to see much appreciation.