22 Year Old Moving to Chicago -- Rent or Buy?

[Fuse_5a]

Originally Posted by Drover

Some bus lines run 24/7. Only the Red and Blue line trains run 24/7 but the others run probably 20 out of 24 hours a day, albeit infrequently at the extreme ends of their schedules.

Here (http://www.transitchicago.com/maps/systemmaps.html - broken link) is where you'll find the system maps so you can figure out which bus runs where, and here (http://www.transitchicago.com/maps/bus/bus.html - broken link) is where you can find their respective schedules. The ones that have the "OWL" designation at the end are the ones that run 24 hours.

Originally Posted by andrew61

Also, make sure you study the bus schedules closely... particularly the start and end destinations. Some of the "OWL" (24/7) buses don't travel the full route late at night.

Thanks Drover and andrew for the bus and train info !!
and sorry soontobechicagoan for messing up ur subject

[Frank the Tank]

Originally Posted by SoonToBeChicagoan

Hello all,

So I just graduated from my university this semester (undergrad) and am moving to Chicago for my first job. I am looking for a 1 bedroom - 1 bath apartment/condo (no studios). I've talked to my parents and some of their friends, and the general concensus seems to be that now is the perfect time to put my income to use and go ahead and invest my own apartment. I plan on staying in Chicago for the long term, and have done lots of research on established areas, as well as up-and-coming areas of Chicago.

I am really looking to buy a place that is very close to the El and in an area which would not be difficult to rent out to someone else in the future. I will be working downtown, earning $56,000/year, and would ideally like to find a place that is in the range of $200k-$230k. I have spent 3 months in Chicago last summer, so I have a general idea of the different neighborhoods.

I haven't talked to any banks yet, but I am also looking for an interest only loan, so that I can get the benefits of tax deductions.

My questions for you all are -- do you think it would be a good idea for a 22 year old to start right out by buying my own place? Or would it be smarter to sign my income away to a landlord? Also, what are the best areas to look into, given my job location (the Loop), salary, and current property value trends in the Chicago area.

Thanks in advance.

If all you can afford is an interest-only loan, then you shouldn't be buying. That means you're not putting equity into the real estate (which is the exact same thing as renting) yet you're locked into a long-term financial commitment that you may or may not get out of (as opposed to the short-term obligations of a lease). Sure, you'll get some tax deductions for the interest and you might gain equity from any appreciation, but that's not worth the risk for someone in your position since you'd be unbelievably and completely screwed if the place hasn't appreciated when you want to sell. What I'm saying is that you should buy when you're able to get a more traditional mortgage (at least where you can have a decent down payment and are putting in equity every month). Buying real estate is usually a good thing in the long term, but only if you're approaching it the proper way.

[Mathead]

The renters market is expensive right now. I left the city two years ago and I've seen places jump at least 400 for 2 or 3 bedrooms from what they were back then. There is a lot to be said about not being tied down with buying though. If I were you, I'd get settled in then look around to buy after spending a year renting.