$ 8,000 Tax Credit
If you want to take advantage of the $ 8,000 tax credit, you should really put on the speed burners right now to find your condominium. The $ 8,000 tax incentive program ends November 30th of 2009, only four months away. It's time now to really put the push on and start making final decisions on what condo you want. Once you find the condo, it normally will take you thirty to forty-five days to finance the condo. That leaves another month or two for complications.
Let's break this down. If you find the condominium you'd like to buy today the likely hood of you closing around September 15th is good. That leaves a month a half room to spare. What if you haven't started looking for your condo? That only leaves about six weeks to find something and then hope nothing goes wrong before the closing.
The $ 8,000 tax credit will end November 30th. Remember in real estate, there are always road bumps before a closing. A lender may decide not to finance you six months into the loan process baking everything up. In your final inspection of the property you're buying, you may find the seller not doing everything to the condo he said he would before closing. At this time, because of the dates, you're really not in a position of strength to re-negotiate. The deadline will be too close to being over.
There are dozens of these examples. The best thing is to get out there and find your condo now. Give yourself a few months leeway for the "just in cases". You'll also want to have time for proper negotiation of your price. If you find yourself winding down towards the deadline, you may accept a higher price for the condominium than you wanted to because you have to.
The $8,000 tax incentive program is huge for first time buyers. If you're in the market for a condo and you're renting, this could be a huge thing for you financially. Not only will you be able to join the ranks of people owning their own real estate, but you'll get a huge financial incentive to move forward. Just be wise and prepare now instead of even a few weeks from now. Time is really of the essence right now. The more work you put into it now, the better things will go for you as you get closer to November 30th.
Condominiums for Sale in Chicago
There are thousands of condominiums for sale in Chicago, but how do you know the best way to go through the selection? Buying a condo can be easy or complex depending on the level of expertise you have in owning a condominium in Chicago. Where do you start? What's an association fee? Who will manage the condo complex? What's the best deal out there right now? How do I know it's the best condo on the market?
The condominiums for sale in Chicago right now are all in varying stages of market time. Market time for condominiums represent the amount of time they've been on the market for sale. This is critical to watch. For instance, if a condominium for sale in Chicago has only been on the market for one week, there's a good chance that the seller is not ready for a discounted offer. They will probably wait things out for at least a few months to see how things will play out before thinking of discounting the Chicago condominium substantially. If you see a Chicago condominium on the market for over one hundred and eighty days you know that there's a problem. Most likely the seller has not priced the condo properly. More importantly, you probably have a situation in front of you that could produce thousands of dollars in savings. We call this the motivated seller.
There are a number of ways to find sellers to sell their Chicago condominiums. Tracking market time is one of them. It's pretty obvious that condos that have been on the market for over one hundred and eighty days are going to be more motivated than the guy that's only tried a week or so. Keep a running list of market time and start digesting it all. Once you see a few condos that have been on the market for at least six months, I'd start keying on these to begin making offers. There are so many condominiums for sale in Chicago, that I'd rather start offering the one's that the sellers are the most motivated saving me a ton of time. Once the ball starts rolling and you've made ten offers on ten condos, you'll start to see who really is most motivated. You'll zero you're pick down to two or three and eventually wind up with a great deal.Â
The condos for sale in Chicago can be sifted through in an organized fashion to ultimately find the deal of a lifetime. Take you time and have fun.
Own A Condo
Do you want to Own A Condo? Owning a condo can be one of the most rewarding experiences you'll ever go through as long as you choose the right people to help you though the process. There are many players in the process to owning a condo. It starts with you. Why do you want to own a condo to start with? What draws you to this type of real estate?Â
A condominium is very different from a house. A condominium has lots of neighbors connected to the same building and you have a five person team running the entire complex known as the condo association board. There are rules you have to abide by and there are times you can't be as loud as you like because you probably will have a neighbor above you, below you, on the each side of you and across the hall.Â
To own a condo you'll need to start with checking into condo lending. This is the beginning of everything. The condominium lender will let you know all about programs that you'll fit under. There may be a need for a co-signer if your credit is bad. You may need a partner if you do not have enough for a down payment. All of these issues will be talked about at that initial meeting. Most lenders will ask you to provide proof of the information you give them. You may need to provide bank statements and proof of income from your employer.
Once the lender has determined the program that's right for you, the next step is to choose a realtor to help in the process of looking for a condo. Condominiums are all over the and at different prices. Real estate agents work with this process everyday and can help you zero in on the condo you want to own. The real estate agent typically gets paid by the seller of the condominium, so use their services. Basically you're getting a wealth of knowledge for free. To own a condo in a specific area of Chicago, you'll need to check out the condition of the condo association. Is the association up to date with their payments on the essential bills running the condo complex? Do they have any money in a budget for long term capital expenses? Your attorney and real estate agent will help you with all these questions.
If you really want to own a condo, it can be accomplished. Choose the right team and get out and look at some condos and before you know it, you'll own the condo of your dreams!
Condominium
What stops you from owning a condominium when you really want one? So many renters focus too much on why they can’t own when most of the times, it’s very possible to own a condominium. Condominium ownership is actually less expensive than renting many times. Let’s break down the cost of condos to own in an area of Chicago.
A condominium in Chicago on the southwest side costs roughly $ 129,000. You can get a loan to purchase the condominium for 3.5% of the value is roughly $ 3,900. So you need $3,900 to use as a down payment. Next, you’ll need to know how much it will cost monthly. After you put the $3,900 down, you’ll need a bank mortgage of approx. $125,000. At an interest rate of 6% over thirty years, the monthly amount comes to approx $750.00. Next comes the real estate taxes. On a two bedroom condominium on the southwest side of Chicago you’re looking at roughly $150 per month for taxes. That puts you at $900 total per month. We’re not done.
The condominium you buy will be run by an association that will pay for the upkeep of the real estate. Each condominium owner needs to pay into this association. This is known as condominium association dues. The condo association varies but on average lets estimate this fee at $150.00 per month. Added with the $900 total, we’re now at $1,050 per month to own your condominium.
What’s next? Mortgage insurance on your condominium. Because you did not pay 20% down, the mortgage company will ask that you get mortgage insurance. This will cost you another $50 per month. Now you’re at $1,100 per month. What are you paying rent right now? You’re probably paying very close to that today. Maybe even more. What if you do not have enough for the down payment? How about a rent to own programs that allow a portion of your rent for a down payment? What about borrowing the down payment? What about going in half with a friend? Now the down payment is half of what you need. There’s always a way if you really want to own a condominium.
Condominium ownership means you own instead of paying rent. Renting a condo may be nice, but do you know what owning a condo feels like? It’s the American dream. It’s not being under anyone’s control but your own.
Condominium
What is a condominium? I hear it all the time but I’m really not sure what it actually is. Do you own it, do you rent it…what exactly is a condominium? We hear that more than you think. Condominiums became more commercialized in the late 1960’s and early 1970’s. A condominium is a unit within a building that you personally purchase. You own the space within your four walls. This allows you to decorate or furnish any way you’d like. When it comes time to move, you can usually either rent the condominium or sell the condominium.
A condominium can be as small as 250 square feet, mostly known as a studio condominium. They can also be as large as ten thousand square feet. These are usually at the top of high rise complexes and are referred to as penthouse condominiums.
Why would someone buy a condominium? Condominiums are usually priced lower than houses allowing a number of people to get into real estate ownership. If you can’t afford a home to buy, there’s a good chance that by buying a condo first it will allow you to save money to eventually buy a house if that is your goal. Condominiums are a great starter for families because it allows them to reap all the benefits of real estate ownership. There is appreciation, equity build-up, tax savings and the control of your condominium.
Appreciation in condominiums really depends on how you buy the condominium. In any investment it always comes down to the buy. Buy right and you can make a lot of money when it comes time to sell your condominium. What is equity build up? When you buy your condominium, you will most likely need to finance the condominium through a bank. Each month when you make a mortgage payment, you’ll have a little part of that payment go to paying the mortgage down. This is called equity build-up. Each month the mortgage goes down slightly. When it comes time to sell, your mortgage amount is lower than what you got it for when you bought the condominium. The difference is the equity build-up.
A condominium can also be for people that want to no longer want to have the hassle of upkeep on a house. As people age, they many times want to downsize not only their living space, but the maintenance on the house. A condominium is a perfect choice for these people. Condominiums can be a great investment for not only the first time buyer but the senior downsizing as well.
Why you Should Work with a Realtor
If you happen to be considering selling your condo, working with a realtor is imperative. A professional realtor can provide you with the guidance and a multitude of opportunities that are unavailable to people that are selling by owner. There are a number of benefits to working with a trained realtor, especially when you are selling your condo.
Realtors have access to a number of resources that can make a huge difference when you are selling. They can use the MLS database which offers comprehensive information on your property. Real estate ads in newspapers are not very informative. They typically offer the bare minimum facts about the condo such as the number of bedrooms and baths. The MLS listing includes a wealth of information and photographs. You can showcase your condo for sale and earn the interest of potential buyers by enticing them with information. You can include information about the location, for instance, if you are close to public transportation or a park. You can also include any updates or renovations you have made. The MLS database is a great way for a realtor to showcase what makes your condo stand out when compared to other condos for sale in the area.
In working with a realtor, you can also trust that they know the market around your property. They will know what condos in your area are going for and they can help you price yours accordingly. Depending upon the features and the amenities that your condo has, a trained realty professional will be able to help you price your condo at a price that will get it sold.
Realtors also have the ability to attract more potential buyers to your condo than you can. If you attend an open house thrown by a realtor and compare it to an open house that is held by owner, you will clearly see this fact illustrated. Realtors know the market and they know how to attract buyers in the market. A realtor will find you many more potential buyers to come and see your condo.
When working with a realtor, you can also expect everything to go much more smoothly at your closing. Realtors know about all of the required paperwork and they will walk you through the entire process to make sure that there aren’t any mistakes or last minute changes that you do not approve of. They can provide you with peace of mind that the entire transaction will be quick and successful.
Why Find a Rent to Own Condo
Many people are looking to find a rent to own condo. These types of opportunities are great for people that may have some credit problems or that are unable to afford large down payments. It is very hard to get ahead when you are throwing away several hundreds of dollars a month in rent. Fortunately, rent to own condos make it possible for you to eventually take ownership of your property.
Lenders have made obtaining loans very difficult. With the current state of the economy, it is harder than ever before to secure credit. If you have made a few mistakes in the past with your credit or if you encountered bad extenuating circumstances over time, such as medical problems or unemployment, your credit may have been adversely affected and could make it virtually impossible to get a loan. Just because you may have hit a few rough patches in your past, it does not mean that you are unable to be financially responsible right now. A rent to own condo will give you the chance to take a positive step in improving your financial future. If you can not secure a loan, look into rent to own options.
Many families also live paycheck to paycheck. While these families pay all of their bills on time and may have excellent credit, they are unable to save up enough money to use as a down payment on a condo. When they find out that the dollar amount that they spend on apartment rent every month could be equivalent to a monthly mortgage payment on a condo, it can be very disappointing. By taking advantage of a rent to own condo, you will not need to come up with a large down payment. You can pay your monthly rent regularly and it will be applied towards the cost of the condo. This is a great option for a person that is looking to own property but unable to come up with a lump some of money.
Instead of throwing your hard earned money away every month on rent, make a choice to find a rent to own option so that you will have something to show for your money. Apartment rents are on the rise while condos are more affordable to own now than they have been in recent years due to the latest decline in property values. You can find many of these options available on great condos.
