Condo Associations
Condo associations were originally created as a legal entity for the purpose of developing, managing and selling a development. It allows the developer to exit financial and legal responsibilities typically by transferring ownership to the condo owners after selling off a pre-determined number of units. Most condo associations are non-profit corporations and are subject to state statues that govern such corporations. Oversight of these associations runs the gambit from strict regulation to virtually no oversight at all. It should be an integral part of your research to be aware of the importance of investigating the association when you buy a condo.
Condo associations have certain duties and responsibilities for not only the day to day operations but for long term planning. It is the association that monitors adherence to the by-law and regulations so before you buy make certain that you can live with these regulations, they can make your life in the condo complex very enjoyable or an unpleasant experience.Â
Condo associations for the most part will take care of all of the exterior upkeep of buildings and grounds. It varies little from most associations so it is important to have a clear idea of exactly what will and will not be covered so there are no surprises when you find out if repairs are needed. No matter what state you live in every condo association is required to file a declaration of covenants, conditions and restrictions. The document discloses how the condo association is to be structured, what its duties and responsibilities are, and what restrictions are to be placed on the owners. In most cases, this document will be specific, for example, it may stipulate exactly what interior window coverings are acceptable. Obviously the goal is to create as much uniformity as possible throughout the complex.
One last most important area to investigate is the financial health of the association. Associations are required to develop an annual budget for both the condo association fees and expenses. The association must also state the current financial condition. If the condo association is solvent, the more you as a condo owner will be protected. Remember if there is an expensive repair that is the responsibility of the condo association and there are not enough reserves available then the only place to get the needed funds is from the owners. The only way to get those funds is with a special assessment. Investigating the association can head off many of these types of problems before they become too costly to you the owner.
Rent to Own a Condo
Rent to own a condo or home has received a lot of press lately due to the downturn in the real estate market the last couple of years but is still a very viable option for many home or condo buyers. There are two main reasons why the rent to own program is attractive to many buyers in today's economy.
Lack of a down payment is common today with the credit markets shrinking and the ability to obtain credit getting harder by the day. Home lenders no longer have the financial products available to write loans they way they did just a few short years ago. Cash strapped first time home buyers with good credit are finding it much too difficult to find loan products with little or no down payment. The rent to own a condo or home programs offered by many different real estate companies and other organizations fills the gap between the inability to buy now and waiting for possibly years before a down payment can be saved. Rent to own programs can be structured several different ways offering condo or home buyers a variety of options to purchase sooner than later. One of the most popular today is for a portion of the rent to go toward closing costs or down payment. This makes it easier for the potential buyer to save the much needed down payment because it is already a part of their monthly payment. The excess in rent goes toward an escrow account that is not tapped until the buyer is ready to purchase. In other words, a forced savings account where the buyer or seller do not have access to the money until an agreement to purchase is executed.
The second reason rent to own a condo or home is attractive to many first time home buyers is to create or repair their credit. When you first go out into the working world you may not have established enough credit for a financial institution to lend your money for a mortgage. Paying your rent on time in a rent to own program can help you establish the credit needed to purchase since many lenders see the correlation between paying rent and paying a mortgage. Paying the rent on time not only helps on establishing initial credit scores but also goes a long way in repairing your credit if you have had some challenges in the past. The rent to own programs today are usually for twelve or more months, so not only are you saving money but have the time needed for credit repair. Many agencies are available for credit repair but be careful and do your research before signing any agreements. Your dream of owning your own home is on the line!
Rent a Condo in Chicago
Whether you are apartment or condo hunting it is not the easiest thing when trying to rent a condo in Chicago. There is so much to choose from and you may find places not suited to your tastes or your budget. But don't despair, you might have to settle for something less than perfect but you might just find the right place. However, before you finalize the agreement, there are a few questions that need to be asked of the landlord so there is no disagreement later on during the lease period. Some of the points listed below may already be included in the agreement because they are required by municipal ordinances or for your safety so the landlord does not go back on his word.
Some of the questions you should ask are obvious but nonetheless important so don't hesitate to press for answers.
- When will the unit be available? Is it practical to move in immediately?
- How much is the rent and what day is it payable? Is there a penalty fee and if so how much for late payments?
- How much is the security deposit and what are the terms for refund?
- What are the terms to renew the lease? Is there an option to rent to own? What are the terms if I wish to exercise this option?
- What are the conditions if you have to move out before the lease expires? Will my security deposit be returned under certain conditions?
- Are any utilities included in the agreement? Which are included? If not included, what are the typical bill amounts in different seasons?
- What happens if someone wants to buy the condo while I have an agreement?
- Can I have a roommate and what is the policy for subletting?
- Can I paint and make other decorating changes?
- Am I allowed to run a home business from the condo or apartment?
- Who is responsible for property maintenance?
- Are pets allowed and is a security deposit required? Is the deposit refundable if there is no damage when I move out?
These are all valid questions that can help you avoid any cause for disagreement in the future between you and your landlord when you rent a condo in Chicago. Finding the right condo or apartment can be a daunting task but there is assistance available. Go online or check the yellow pages for rental or real estate agencies in the area in which you wish to live.
Condos
Boy, did condos catch on. When the word condominium was introduced in the real estate market place in the late sixties, no one really understood it. I remember as a seven year old kid, going through my first so called condominium with neighbor friends of mine. Today, condominiums are built in every major metropolitan area of the country. They are international as well.
The great concept to condominiums is you’re able to enjoy the benefits of real estate ownership without all the hassle of maintenance. In condo living, you’re the owner of everything within your four walls. You own that space along with a percentage of the common areas as well, such as the pool, the landscaping, parking lot, etc. Each month there are fees called “association fees†that each condo owner has to pay to handle the expenses of the condominium complex. They involve the electric to light the condo complex, the heat, the garbage removal, long term maintenance, short term maintenance, hallway cleaning and a host of others.Â
The way the condo association fees are estimated is by taking the expenses from the previous year and adding an additional 5%. Then they take that total and divide it by twelve months giving a monthly total for expenses. Then they divide that total among the condo owners based on their percentage of space owned in the building. This figure will be the month association expense you will pay in the complex. If the complex expenses exceed what is estimated for a year, there will be what is called a special assessment that all owners will have to pay in to. This will happen on occasions and you’ll need to be aware of this. Once in a while, you’ll find that a major component of the building needs to be replaced like a boiler heating system and there is not enough of money to cover this in the association reserve. This will also be invoiced to you as a special assessment and you’ll be obligated to pay your portion of it based on the percentage of ownership you have in the complex.
It may sound dangerous to buy in to a condominium not knowing what might happen with all the what if’s, but as long as the property is managed decently, the chances of you benefiting by being an owner of real estate is much higher than that you having a negative situation of having to pay more into the complex than what it’s worth.
Chicago Real Estate
Chicago real estate has become quite a hot commodity lately. With interest rates at all-time lows and the $8,000 first time buyer tax incentive from the United States government, there may never be a better buying time for those that can afford to. The knockout punch in all of this is the price incentives from sellers. Real estate in Chicago is at an incredible discount from the slowdown over the last three years. This has created buying opportunities unheard of.
The Chicago real estate market has been buzzing in spring of 2009 from all of this. Buyers have come out of the woodwork and we’re also seeing real estate investors again as well. Theirs is usually a tipping point before the breakout and it looks as if we may be very close to it. The condo market in Chicago has heated up as well. There are more than 35,000 condos for sale right now in inventory, but many of these condos are being rented with option to buy. We’re seeing a number of real estate firms in Chicago turning to rent-to-own programs to help move the condominium product.Â
The smell of spring is in the air and real estate in Chicago appears to be on the move again. Have we bottomed out? Only history will tell us, but right now, it appears as if there’s been an upswing in activity. Real estate agents in Chicago have been busier than ever as reported by OwnACondo.com’s owner Brian Kuzdas. Mr. Kuzdas recently was quoted as saying, “it’s been the busiest we’ve ever seen it inside the OwnACondo.com walls. The phones are ringing off the hooks and agents are meeting with more than ten families a week. Our sales volume and rental volume have increased ten fold.â€Â Around the real estate industry we’re hearing similar things as well. It will only be a matter of time before we see how the tipping point began, but it may have started.
Chicago real estate has always been a popular investment opportunity for people around the country and internationally as well. With landmark buildings like Seas Tower and the John Hancock building, Chicago real estate has been one of the safest and opportunistic investments around. Chicago was hit hard though with the downturn in real estate in 2007 & 2008, but it wasn’t hit as bad as some of the cities on each of the coasts like Miami and Los Angeles.Â
If you’re getting ready to start buying at a discount, Chicago real estate may be one of the places to start.
Union Station Chicago
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One of the city of Chicago's many treasures is Union Station Chicago. Completed in 1925, and originally designed by famed architect Daniel Burnham, this is an awe inspiring architectural wonder. In additional to its visual grandeur, the Great Hall has a rich theatrical film history with notable cinematic productions like "The Untouchables", "Flags of Our Fathers", and "My Best Friend's Wedding".
Located on the edge of downtown, Union Station Chicago is an appealing place for condominium owners. Dining, entertainment, convenience, and of course, convenient transportation make this an ideal place when considering a Chicagoland condominium. If you are looking to feel the excitement of the city, but still enjoy a neighborhood atmosphere, then the area around Chicago's Union Station, should be a place to check out!
Finding a new condo is easy at OwnACondo.com. Not only will our convenient search engine allow you to take a detailed look at this area and others, but our team of experienced real estate agents will guide you through every step of the home buying process.
Living in a condominium not only offers a convenient lifestyle, but now is the best time to buy a home in over 35 years! Take advantage of this unique period in history with exceptionally low interest rates, and don't forget about the $8,000.00 tax credit. Are you renting instead of owning? Why? The time is perfect for you to come out and enjoy the benefits of owning your own condo. And when you start that special search...consider the area around Chicago's Union Station.
Chicago Developments
Is 2009 the right time to buy a home? Let's evaluate where the market is, and what's happening with Chicago developments and properties. First, the impact the economic situation has had on the Chicagoland marketplace. According to Trulia.com, the median sales price for homes in the Chicago, IL area decreased 23.1% for the period of 12/08 through 02/09 compared to the same period 12 months prior. According to the Illinois Association of Realtors, the median home price in the city of Chicago was down 28.9% in January 2009 vs. January 2008.
Prices are down. Simply put. Now, let's couple decreased pricing with the staggering amount of inventory, and number of distressed properties, and a situation exists where we have a definitive advantage for a home buyer.
However, opportunity alone doesn't necessitate a desire to finally have a condo of your own. If you are considering Chicago developments and properties, and are not solely motivated by the decreased prices, and ample opportunities, let's consider financial advantages. Have you investigated the $8,000 tax credit? You can learn more about it at OwnACondo.com. What about FHA Financing? With a lower downpayment and more lenient guidelines, it could provide the impetus for finally allowing you to own a condominium of your own. Talk to one of our preferred condo lenders today to see if you qualify.
Some real estate experts consider this period to be the best buyers market in over 35 years. With the combination of aggressive interest rates, ample inventory, and reduced pricing...this is truly a unique period. We don't know how long this opportunity will last, and when it's gone, we do not know when or if we will see it again. So ask yourself this question...if you do not take advantage of this time to purchase a home, will you wake up with no regrets two or three years from now? My guess is that you will! Take a look at Chicago developments and properties to see the unbelievable possibilities. Begin your condo search today at OwnACondo.com
Condo Auctions in Chicago
With the ever changing Chicago real estate market a centuries old process of buying and selling has resurfaced. Condo auctions in Chicago is becoming one of the most attractive ways to buy or sell real estate no matter if it is your primary residence, vacation home, or investment property. To many people in Chicago a real estate auction is foreign to their way of thinking regarding the purchase or sale of their condo or home, but auctions have long been the primary means of buying and selling real estate in other parts of the country, particularly the south. Auctions are the relatively simple process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the winning bidder. The definition above is the basic auction form but there are several variations, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder or sale price. Many times the participants may or may not know the identities or actions of the other bidders and they can participate in a variety of ways, such as by telephone, or internet. No matter how the auction is conducted the seller usually pays a commission based on a percentage of the final sales price.
Real estate auctions are exponentially growing due to all the talk we continually hear about the economy and real estate. There are foreclosures, loss of equity and homeowners in trouble and it can make it difficult to sell properties not matter where they are located. The media is helping condo auctions in Chicago and smart buyers and sellers are using it to their advantage. Real estate auctions attract buyers and they can get the highest and best offer in the shortest amount of time. The media helps with this by talking about how real estate is cheap and now is a great time to buy. Free advertising is being provided so when potential buyers see auction signs they believe a deal is waiting to be made. Additionally, real estate auctions are moving to online sites that cater to our more technologically advanced buying public which many motivated sellers are seeing as an advantage since mass advertising at very little cost can expose their property to the maximum number of buyers possible. More and more real estate agents are discovering that marketing is much less expensive and online auctions give them the most bang for their marketing buck. Auctions are a trend that with today's economy will continue to grow.
Environmentally Friendly Condos
How do you find environmentally friendly condos? If you’re the type of person that wants to live in space that takes into consideration everything green, it’s important to hook up with a condo specialist that has a designation that certifies them a specialist in this field. There are many realtors in the Chicago area that specialize in this.
In Chicago you can find environmentally green condos by doing a google search, but more importantly, through your local realtor. Many times an office will have one or two realtors that focus primarily on this type of real estate.Â
The cost for buying an environmentally friendly condo now is a tad more expensive upfront, but in the long run, may save you thousands of dollars in the future. Some of the significant savings will be on your electric and heating bills.Â
There are many developers that are moving in the direction of being environmentally friendly. You’ll see several advertisements with “green condos†or “environmentally friendly condos†phrases attached. If you have trouble finding any of these condo developments, the best thing to do is call a specialized Realtor that focuses on this. There are “green realtors†that will be able to pin point all the green developments in the Chicago condo arena.
Chicago condos have felt a tremendous downturn in value over the last three years with the real estate market collapsing allowing great opportunities to buy green condos everywhere. Condo developments are sitting with green inventory everywhere allowing condo buyers to pick up deals at 50 cents to 75 cents on the dollar. It’s really an incredible time to buy right now. Interest rates are at an all time low, financing for condos can be easy if you have the right down payment and the deals are everywhere.
Environmentally friendly condos will enhance your way of life and you’ll find that you’ll have much to show to your friends when you own one of these Chicago condominiums. Take the time and make sure you research the Chicago real estate market thoroughly before moving forward with your real estate investment. This will be one of the biggest purchase of your life. Seek out a Chicago realtor.
