Chicago’s upcoming mayoral election is a popular topic of conversation, and the winner will take the reins of a city that has been transformed by the addition of lakefront condos and more since Mayor Richard M. Daley took charge of in 1989.
While not everyone agreed with Daley’s way of doing things, most Chicagoans would agree that much was done during his 22-year tenure, including an enhancement of the city skyline with the addition of numerous luxury high-rises near Lake Michigan. These include One Museum Park, Trump International Hotel and Tower, and many more.
Other beautification projects such as the Museum Campus and Millennium Park, as well as the redevelopment of Navy Pier into the biggest tourist attraction in Illinois, also made neighborhoods such as the South Loop, River North and the Gold Coast, much more inviting to people looking for condos.
In fact, the news in the 1990s that Daley and his wife were buying a South Loop condo and moving out of the Bridgeport neighborhood that has been his family’s home base for generations created almost as much interest as when he decided not to run in the 2011 mayoral election. About the same time, Bridgeport itself was enjoying a period of revitalization too, with the addition of many new condos and townhomes that were snapped up by home buyers interested in living in an affordable area near downtown.
Of course, the building boom ended when the economy crashed in 2008, so the winner of the mayoral election will likely not see as much success in that area. But with interest rates remaining low, and the economy slowly improving, the rate of buying condos is sure to rebound and rise again.
While the downturn in the economy seems to have doomed the Chicago Spire project to never rise above the literal hole in the ground that it is now, that should not be seen as a metaphor for the real estate industry in Chicago, which is sure to recover and rise to new heights—sooner rather than later.
The Spire would have been eye-catching, to be sure, towering above the already impressive Chicago skyline. The unique spiraled 150-story building with 1,200 luxury condos was to have been erected at 400 N. Lake Shore Drive, at East Randolph Street beside the Chicago River. But, alas, it has been effectively been foreclosed on, due to unpaid property taxes, and developer Garrett Kelleher has lost control of the site, effectively putting him in the same predicament as thousands of homeowners who have lost their homes to foreclosure in the past two years. In fact, Allied Irish Bank, the original lender, has suffered much the same fate, having been basically taken over by the Irish government and nationalized after the government gave it an infusion of funds to keep it afloat.
In the case of The Chicago Spire, anyone with a stake in the proposed luxury condo high-rise has a certain amount of time, roughly two months, to pay the tax debt and retake control of the property. But if the time limit passes and no one steps forward, the lender can start formal foreclosure procedures. Three parcels of land make up the site, and In the meantime, the downturn in the economy has reduced the value of the land that The Spire was to be built on. According to recent reports, the largest parcel is now worth $2 million, half of what it had been formerly appraised.
And although the Spire project is basically defunct, condo shoppers who want to live downtown, or near the lakefront, still have a lot of options. There are still plenty of new condo developments to choose from, and prices have come down too, so it remains a buyer’s market with many deals available.
The new, upscale lakefront condos, comparable to what the Chicago Spire would have been, include the Trump International Hotel and Tower, and One Museum Park. You wouldn’t be 150 stories up in the air, but pretty close. For instance, the 92-story Trump International Hotel and Tower, at 401 N. Wabash Ave., is the tallest residential tower in Chicago, and features some of the same great views that the Chicago Spire promised. Located just west of Michigan Avenue, the tower provides views of Grant Park, Millennium Park, Navy Pier and Lake Michigan.
Looking for downtown condos can be a daunting prospect in Chicago, because there are so many styles to choose from, in several different neighborhoods. But the good news is, OwnACondo.com has knowledgeable, experienced condo specialists who can help you find the right one—and looking is part of the fun.
While many cities have a specific downtown neighborhood, in Chicago, the area is not as clearly defined. It can encompass all or part of neighborhoods such as the Loop, South Loop, Streeterville, River North and the Gold Coast. While many of those areas are known for their luxury condos, don’t think that because they are not in your price range, there nothing for you. In addition to the many new luxury towers that arose during the building boom of recent years, downtown condos come in all shapes, sizes and price ranges in those areas.
Downtown condos are popular with people of all ages, because they offer something for everyone, whether amenities such as pools, fitness rooms and sky decks are on your wish list, or just a place close to work and play. Young professionals with jobs downtown like the idea of a short commute, as well as being close to all the great shopping and nightlife options in the lakefront neighborhoods. “Empty-nesters” who are downsizing are also are drawn to downtown condos, because they want to be close to all the downtown activities, and give up lawn maintenance—or even the need for a car.
Being close to Lake Michigan, with its beaches and marinas, as well as Grant Park and the many museums on the lakefront is another great selling point for downtown condos,
Besides the new luxury condos that have given neighborhoods such as the South Loop a whole new look, there are other vintage buildings such as Six North Michigan that have been turned into upscale condos. It is easy to forget that many of the most well-known condo high-rises—Lake Point Tower and Marina Tower just to name two, began as apartment buildings decades ago and were only converted to condos in recent years.
Loft condos have also become increasingly popular, and can be found in all the downtown neighborhoods. These include the classic lofts in revamped warehouses and other industrial property, as well as newer loft-style with the classic look and all the modern amenities.
So whether you are looking for downtown condos with views of Lake Michigan or the Chicago River, or close proximity to the Magnificent Mile, there is something for you. Even if you are not ready to buy yet, rental condos can be found in many buildings too.
When it’s time to sell your condo and put it on the market, many people wonder if they are better off selling as a “by owner” or using the services of a Realtor®. The reason for the quandary is typically a financial one. It is a common myth, actually, that the seller will net greater proceeds from the sale if they sell it themselves. In reality, buyers are typically looking for the “by owner” to drop the price of the realtor’s commission as much as a whopping 6-10% below the price of comparable homes listed by real estate firms. Otherwise, they can find more selection of homes and a more trusted sale if they use the services of the realtor.
Time is Money
How much is your time worth? If you don’t use a real estate professional, expect to spend at least 100 hours selling your condo – assuming there are no problems! Considering your work, family, and personal commitments, is that the best use of your time?
It’s a Big Deal
Selling a condo is a big deal. Most people don’t sell more than two homes in their lifetime, so it’s not something they develop expertise in. There are ever-changing laws, ethical practices and practical considerations that you don’t want to learn on your own through trial and error or relying on a book or information off the Internet. It’s just not worth the risk.
When selling a condo Your REALTOR®...
1 - Helps you understand the home selling process from putting your home on the market through closing
2 - Advises you as to the right price for the home based on their knowledge of what comparable condos are being sold for
3 - Assists you in determining the necessary home improvements required to get your property in the best selling condition possible for the lowest cost possible
4 - Develops your personalized condo marketing plan and places your listing on the exclusive Realtor® Multiple Listing System to reach as many buyers as possible
5 - Handles the showing of your property so your schedule is not tied up keeping appointments with prospective purchasers
6 - Conducts informative and professional tours of your home through open houses
7 - Negotiates the offers to purchase to obtain the highest price possible for your condo
8 - Tracks the various phases involved in meeting your contractual obligations as the seller
9 - Leads you through the home inspection phase and negotiates on your behalf
10 - Coordinates the supporting contractual paperwork required for settlement
11 - Organizes the details of your settlement amongst all parties to ensure a smooth transition
All we hear right now is about unemployment, health care reform and bailouts. That doesn’t mean there has not been talk of the real estate market and what is happening in that part of the economy. The question I am hearing more each day is, why should I buy now? Depending on who you listen to the market may or may not be at its bottom and who in all reality can forecast it. Many of those so-called forecasters were the ones that missed all aspects of the economy as it was tumbling downward. And down is not always a bad place to be since the only other way is up. Whether we are at the bottom, close to the bottom or on our way up it is a good time to buy your home or condo.
Why should I buy now? There are several factors that are in your favor by acting now.
Pride of ownership is the number one reason people want to buy a home. Home ownership offers you and your family a sense of stability and security while making an investment in the future.
Home ownership is currently one of the best tax shelters available with the volatility of today’s stock market. Mortgage interest is fully deductible on your tax return which lessens your tax burden year after year.
Mortgage reduction builds equity in your home. Each month you make a payment the principal portion of your loan goes down and as the principal goes down and the price of your home goes up, you are building equity or more asset value.
Another reason to ask yourself why should I buy now is interest rates are lower than they have been in years. Do you realize that you may be able get a 30 year fixed rate for less than 5% which makes a purchase start to look very appealing and if you tie that with anticipated inflation you will be paying back the loan with devalued dollars meaning you are getting more for your money than when you started. That means you can afford more home or if you want you can buy a more reasonably priced home and keep the payments low, maybe even less than you are paying in rent. Would you have imagined several years ago that you could get free money and a great interest rate on buying a home? If you are like most of us you would have laughed us out of the place, but it is happening now. We would never have guessed it, just like we are never going to guess the bottom of the housing market. So just do it!
Let’s be honest. The national real estate market is certainly facing its challenges and the Chicago Condo market is no different but there are some reasons to be optimistic about what is happening across the nation and more specifically in the Chicago market. The Chicago Tribune reported new housing and condo developments have undergone a record seven month decline, which may be the reason the Chicago condo market is somewhat stable. The lack of new developments has helped to slow a glut in the housing and condo markets for Chicago and we are beginning to see prices stabilize. I am hearing from many potential condo buyers that they expected a big collapse in prices so they could pick up a condo cheap but they now think that collapse may never happen. We could very well be at the bottom of the housing market which means there is no way to go but up encouraging buyers to get in the market for those great deals before they are all gone.
The Chicago condo market is improving due to the current rental market. Chicago is known for the consistency in which rents increase. The media has sensationalized the troubles in the real estate market regarding the difficulties in getting financing to purchase a home or condo which has encouraged landlords to increase their rents year after year believing the market is glutted with renters. Nothing could be further from the truth. With the advent of rent to own programs and the $8000 tax credit more and more potential first time home buyers are entering the market. There is no question even in today’s real estate market that owning a property is a much better alternative if you intend on staying for at least 4 or more years.
Historically, the Chicago condo market has been volatile with its many well known developers, political movers and shakers and just the attitude of its residents. Chicago is such a mix of cultures and nationalities with over 77 different neighborhoods that condo buyers have a variety of choices from the more upscale Gold Coast to the excitement of Wrigleyville. There is no place like the city of Chicago and all it has to offer from the dozens of museums to professional sports for those who want to live in one of the most exciting cities in the world. Check out the condo market in Chicago, you will be pleasantly surprised.
Many people are inclined to think condo conversions—former apartment buildings converted to condos—are limited to modest low-rise buildings with equally modest prices, in middle-class neighborhoods away from the hustle and bustle of downtown. But they come in all shapes and sizes, and locations.
They can be found in luxury high-rises, in the middle of vibrant city centers, as well as suburban subdivisions. Some of the most luxurious condos, in the ritziest neighborhoods of Chicago and other big cities, are actually condo conversions. For instance, the 70-story Lake Point Tower, a landmark building and part of the Chicago skyline on Lake Michigan, is arguably the most prestigious condo high-rises on the Chicago lakefront. But the building known for its black and copper exterior, and unique curved contours, began as an apartment building when it went up in 1968. It wasn’t until 1988 that they were turned into condos. Of course, when Lake Point Tower was made up of apartments, they were upscale, to say the least. The building has always been known as a popular place to live for celebrities.
Other nearby luxury buildings such as 474 N. Lake Shore Drive, formerly known as North Pier Condos, and Pearson on the Park, all within sight of Lake Michigan and the many restaurants, museums, stores and other attractions that people come downtown to see, began as apartment buildings too and were only turned into condos in the 1990s, when the condo craze took off. The same type of redevelopment has occurred in New York, Miami, Philadelphia and other cities.
Often, some people buying condos automatically consider condo conversions as somehow inferior to condos that have never been anything else. Perhaps because little or no upgrading has taken place and they still look like apartments. Of course, there are instances like that. But more often than not, that simply is not the case. Redevelopers might not change the outside too much, when apartment buildings are converted to condos. If it is not damaged, there is no need to, but if you take a look around inside, you might be pleasantly surprised to find a lot of upgrades, from sound insulation to ultramodern bathtubs, sinks and other fixtures in bathrooms and kitchens.
Extra amenities have often also been added in the many of the condo conversion buildings, especially the luxury buildings. Everything from doormen to pools and health clubs are welcome additions.
So when it comes to condo conversions, as the moral of the story goes, don’t judge a book by its cover—or its name. Investigate and you might find a gem, anywhere from Streeterville to Main Street.
While the latest reports state that
condo foreclosures are up in the Chicago region, particularly in the suburbs, that doesn’t mean it is all bad news. If you’re in the market to
buy a condo, for instance, now is the time to do it because prices have come down.
According to information compiled by the Woodstock Institute, condo foreclosure filings within the city of Chicago rose 37.5 percent during the first half of 2010, but if suburban condo foreclosures included, particularly in hard-hit northwestern Cook County, regional condo foreclosures have swelled 53.8 percent compared with 2009's first half, the Woodstock Institute study found.
Although a plethora of foreclosed condos can be detrimental to the complex they are located in, they are usually not visible from the outside, so they don’t have the immediate effect on local property values. This makes them unlike foreclosed, and boarded-up single-family homes, which are very visible in many neighborhoods, and have a detrimental effect on surrounding property values.
Also, observers have noted that many of the condo properties going into foreclosure were bought by developers, rather than individual homeowners. Many developers bought four or more apartments ir condos, with the intention of converting them to condos, or just fixing them up and selling them . But then the housing bubble burst and they were unable to sell them for a price that give them a return on their investment.
In any case, the high number of condo foreclosures is bringing the average price of property down, so it is a good time to buy a condo. And don’t be afraid of buying a foreclosed condo either, they are often in very good shape, and many banks are willing to make deals and negotiate the price.
Many homeowners considering moving have put off selling condos until they see the real estate prices going up, and that is bound to happen sooner rather than later. But there are plenty who are selling, and it is wise to remember that while there are deals available, few people are willing to just "give away" their property for a rock-bottom price. So if you are in the market to buy, don’t wait too long, expecting the prices to keep decreasing down to nothing. If you like a particular property, whether it is a foreclosed condo or not, and the price is affordable, you may as well go ahead and buy it. Because it won’t be there forever, and the price could go up.
Brand new information as of this hour: The $950 Down Payment Program has expanded to include FIVE MORE communities!
Hot on the heels of our recent announcement that you can now buy a condo for $950 down , we're pleased to announce the program is now available for selected properties in these additional communities:
- Naperville
- Lyons
- Lisle
- Geneva
- Chicago Ridge
Those new developments join an impressive roster of condos in that are already part of the $950 Down Payment Program in the following areas:
- Willowbrook
- Grayslake
- Worth
- Oak Lawn
- Palos Hills
That's now a total of more than 1,000 individual condos at numerous properties in some really outstanding suburban Chicago communities. There's definitely one out there for you!
It's easy to understand how the program works.
- Put $950 down on a condo of your choice
- Close on the condo with developer-provided financing
- Immediately apply for one of the government-sponsored tax credits: the First-Time Home Buyer Tax Credit worth up to the $8,000 or the Repeat Buyer Tax Credit worth up to $6,500. We'll help you file an amended return to speed the arrival of the tax credit if you've already filed your taxes this year.
- Apply all the tax credit funds toward paying down the condo, which effectively raises your equity enough to qualify for conventional financing. You then...
- ...re-finance with our exclusive lending partner, Bank of America, at a great rate.
Now, of course, you need to be eligible for financing and the government-sponsored tax credits in order to take part in this program. That's perfectly understandable. You'll work with a representative from Bank of America to check your credit and see if you qualify for financing. Pretty standard stuff. But because this incredible $950 Down Payment Program has expanded, you just have to take that no-cost step to at least inquire. Contact us and we'll put you in touch with just the right person at Bank of America.
And remember, Bank of America, the exclusive lending partner in this program, is the largest bank holding compny (by assets) in the entire United States. We've partnered with an organization with real condo financing power in this tight economy.
If you're wondering how to get started, here's all you do: Give us a call, toll-free, at 866-696-2266. Let us know what interests you, in terms of community, type of condo, price range, etc. We'll answer your questions.
It's important to be aware of an extremely important deadline: April 30, 2010. That's not far off at all. That deadline exists because that's when the government-sponsored tax credits expire. So although the $950 Down Payment Program has expanded, the tax credit expiration deadline looms.
Don't delay.
$950 Down
There is no better time than the present to buy condos, because along with low interest rates and tax incentives that make it a buyer’s market, motivated developers are offering incentives such as the $950 down program, which allows qualified buyers to get their own condo for an initial down payment of $950.
That’s right, just $950 is all that is needed as a down payment to buy one of the hundreds of condos being sold through the condo program for people with credit scores of at least 620. More than 820 condos located in developments throughout the Chicago area are available for $950 to first-time buyers and repeat buyers, with initial 6.5 percent interest-only financing provided by the developer.
One-. two- and three-bedroom condos with prices as low as $69,900 are available in attractive developments such as Grays Point in Grayslake; Waterfall Glen in Willowbrook; Lloyd Place in Worth; Scenic Tree in Palos Hills; and the Oak Lawn developments of Menard Manor and Park Place. Monthly payments for the condos, including assessments, average between $750 and $1,000.
But the time is limited for those who want to take advantage of the program, which will end April 30, so anyone interested is advised to act quickly and lock in a deal for the condo of their dreams. The deadline coincides with the expiration date for the Government-Sponsored Tax Credit, which participants in the $950 down program will apply for and receive after the initial land contract, and use to build up their down payment for a conventional loan. First-time home buyers could get as much as $8,000 as a tax credit, or $6,500 for a Repeat Buyer.
When the buyer refinances, within 18 months, the tax refund will go toward the down payment. Bank of America, the exclusive partner of OwnACondo.com, can gets loans with excellent interest rates that could be as low as 5.25 percent.
The $950 down condo program is especially good for people who are renting, and would like to buy a condo, but might have thought they could not afford one. You can’t beat $950 as a starting price, and there are a lot of condos to choose from.
All the condo developments are in great suburban locations. Many buildings have been recently renovated, and they all have attractive amenities inside and outside the buildings. They are close to transportation, shopping, restaurants and parks, too.
In short, you can’t really go wrong with the $950 down program. It is one of the best incentives anyone could ask for to become a property owner.
