Chicago condo market
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.
Homebuyer Tax Credit
If you will remember back in 2008 then President Bush signed a Homebuyer Tax Credit that was to stimulate home buying going into 2009. The Housing and Economic Recovery Act of 2008 authorized a $7,500.00 tax credit for qualified first-time home buyers purchasing homes on or after April 2008 and before January 1, 2009. The program has since expired but has been replaced with a much better and larger plan.
The Homebuyer Tax Credit offered today is as follows but changes may be on the way:
- The tax credit is for first-time home buyers only.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 per cent of the home's purchase price up to a maximum of $8,000.00.
- The credit is available for homes purchased on or after January 1, 2009 and before November 30, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The program today is called the American Recovery and Reinvestment Act of 2009 and authorizes up to $8,000 tax credit for first-time home buyers purchasing a principal residence. Many people have questions about the program and below are some of the answers for our buyers. Remember you should consult a qualified tax advisor or legal professional about your unique situation.
First time homebuyers purchasing any kind of home - new or resale - are eligible for the tax credit. The definition of a first time home or condo buyer is as follows; a buyer who has not owned a principal residence during the three year period prior to the purchase. For married buyers the test is of both home buyer and his/her spouse. This year's tax credit is different from last year's because it does not have to be paid back. This year's tax credit is a true credit, not an interest free loan as was last year. However, the home buyer must use the residence as their principal residence for at least three years or possibly face a recapture of the tax credit amount. Claiming the tax credit has also been made easier. All you have to do is complete the tax credit on IRS form 5405 to determine the amount and then claim the amount on line 69 of your 1040 income tax return. No other applications and forms are needed.
Recently Congress passed a bill extending the Home buyer Tax Credit past the November 30 date for military, diplomatic and intelligence personnel serving overseas. The extension of this House bill paves the way for the continued tax credit and word is, offering an expansion of the entire program including offering the credit to a broader group of buyers, such as replacement home buyers whose income does not exceed some limit. Hopefully we will have word of the possible extension in the next few weeks but if you are interested in purchasing and meet the guidelines of the original program don't hesitate to act now. You never know what Congress may do and you would not want to miss out on this opportunity.
Investing in Chicago Condos
To say the least the economic news has not been the best in the last several months but sometimes we forget to notice some of the more encouraging trends that may be underway and why it may be the time for investing in Chicago condos. That does not mean that we should minimize some of the sobering national economic news with consumer confidence down and the psychological worries about rising unemployment. There are some genuinely positive developments with all this news.
Housing affordability has been the best in decades. In many real estate markets around the country as well as the Chicago local market more households are now able to afford a median priced home than any time since 1970. Most of this is due to an increase in household income and the continued decline in prices of homes being sold. Right now most economists agree that the inventory of unsold condos is a huge obstacle, but inventories have been steadily declining over the last several months, which mean we are selling off the excess supply of homes. Selling off the excess inventory will stabilize the market which bodes well for the economy in general. When the economy is good and consumer confidence is high investing in Chicago condos may be the best in decades.
Another recent positive development which hopes to draw even more people to purchase a home or condo is Congress's new $8000 non-repayable tax credit making investing in Chicago condos even more attractive. This is available to anyone who has not owned a primary residence during the past three years. The credit is equal to 10 per cent of the home's purchase price up to a maximum of $8000. You need to act now since it is available only for homes purchased on or before January 1, 2009 and before November 30, 2009.
The Chicago local market is poised for a small rebound in 2009 but then start a steady climb toward improvement in the years following. The housing market has long been an indicator of economic boom or bust and today's market is no different. The housing market has always run in cycles, some short and some longer but there is always a rebound and this cycle is no different than those in the past.   There will not be as quick a recovery we have seen in past troubled economic times but the kind of steady growth expected will be what is needed to sustain a long term housing recovery.
Rent to Own
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.
What is rent to own and what kind of agreements are needed? Rent to own is in its simplest form is renting a home or condo with the opportunity to purchase at a later date. The lease to own or lease-option agreement is both a lease that allows you to occupy the home and an option that allows you to purchase the home in the future at an agreed upon price. The typical agreement may offer a part of the rent to go toward down-payment or closing costs. For example, $200 a month may be applied toward the down-payment where at the end of the year $2400 has been accumulated towards the purchase.
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.
Chicago Condos For Rent
Are you looking for Chicago condos to rent? Where do you go, where do you turn to? And why condos? Why not Chicago apartments? The Chicago area has tons of condos available for rent with very little trouble on your end on finding them. One of the best methods is to use an Multiple Listing Search (MLS). Most of these searches are on real estate company websites.
Chicago Condos can be so much better to rent than Chicago apartments but it takes some time on your end to find the best deals. To start, Chicago condo rentals may have an option to rent the condo and then eventually own it. This is called a rent-to-own program. Many condos can be rented with an agreement in the beginning of the lease that would allow you use a portion of your rent that would go toward the down payment. Imagine $200 off of your $1,000 rent each month being socked away for your use to actually buy the Chicago condo? That means $2,400 after one year.
Many condos in Chicago can be purchased with a mere 5% down. 5% of $200,000 is $10,000. You can see that after a few years, you can possibly have more than half the down payment for the purchase if the contracts for lease-purchase are set up the right way.
What next? It would be best to check into financing the Chicago condominium. Financing is really the key in this whole real estate game. If you want to own but you don’t have the whole amount in cash, you need to bring in a lender. A bank or mortgage company that finances condo loans will start by asking you if you are employed and what money you make on an annual basis. They want to make sure you’ll pay them back for the condo loan. It won’t take the bank more than a day or two to let you know what situation you’re in financially. There are so many people out there that really don’t understand the loan process that when they eventually go through it, many are surprised to see that they actually can qualify to buy a condominium.
Why rent when you can buy a condo? Buying means control. It means ownership of the American Dream. You can never get kicked out of your own condo as long as you pay your mortgage. When a lease ends, you can be booted out anytime. Owning controls your destiny.
Chicago Condos For Rent
Chicago condos for rent can be found by going to the website OwnACondo.com. Click on “rent a condo†on the tool bar and you’ll be abler to access all the condos for rent in the Chicago area.
The nice thing about renting a condo in Chicago versus the Chicago apartment is the condo complexes are usually more kept up. This isn’t always the case, but there’s a higher percentage on condominium complexes in nicer condition than apartment communities. Why is this?
The apartment community is owned normally by one entity called the landlord. He or she owns the entire property. If they do not want to improve their property, they really don’t have to. They can run the property to that edge where they are still legally conforming to all the guidelines of Illinois housing laws but at the same time is close enough to have the facility look like a garbage dump.Â
Chicago condos for rent in condominium complexes should be much different. In condo complexes there is a condo board made up of five people. There’s the president, secretary, treasurer and two members that own condos in the complex. They oversee the entire management process. This is much different than one owner. These five people are put in place to represent the entire condo complex. Their sole role is to help the condo complex run efficiently.
Because you have a staff of five this isn’t the only ingredient that helps rental condos flourish over apartment rentals in Chicago, it’s also the monthly association fees. There’s a budget in place to constantly improve the condo complex with everyone’s participation. Each condo owner has to pay monthly fees to continue living there. This helps with not only the overall costs for upkeep, but improvements as well. Back to the apartment side of the game, there are no reserves for this. It’s all out of the landlord’s pocket. If he doesn’t have money, it doesn’t get fixed.
Chicago condos for rent can vary in price and size. Call your local OwnACondo.com real estate agent for more information on condo rentals in your area.
Chicago Apartments for Rent
The idea of moving to an urban area and tapping into the excitement and cultural opportunities of a big city is taking hold for many Americans. Chicago apartments for rent are exactly what many potential urban dwellers are looking and one classic style that is available today is the loft. Are you one of those people who like wide open floor plans in which there are no preset rooms or immovable walls? Do you prefer floor to ceiling windows revealing a panoramic view where high ceilings, worn wooden floors exposed building elements such as, brick, beams, duct work are the norm? Then loft living is what you are looking for and Chicago apartments for rent is where it's at! A classic loft style apartment is one large space with average living areas of 1000 to 2000 square feet with cavernous spaces beyond the reach of the average resident. It is these aspects which lure many apartment dwellers to the city-life and industrial chic lifestyle. Most classic loft apartments were converted from old manufacturing or warehouse buildings and more contractors are meeting this growing demand by creating these buildings from the ground up. The new reproductions are referred to as "hybrids". Many loft-style apartments come in different shapes and attributes, with or without fireplaces or other amenities. Secured video entry, in house fitness centers, and pools are just a few of the luxury items which can come with your apartment. Today urban dwellers are finding loft living offer the location and opportunities of city life with more space than the average apartment.
Loft life offers many unique joys.
- Open Spaces - the primary benefit is large open spaces that allow you to live how you want, rather than having a defined permanent floor plan of walls, doorways and rooms.
- Define your areas - floor plans can be fluid and ever changing. Temporary partitions, hanging curtains, or even changes in floor covering can define spaces.
- Eclectic style - Apartment style loft living offers the opportunity for eclectic design and decorating. The mixture of old and new in a loft such as, modern furniture sitting on old hardwood floors offers much of the appeal for many urban dwellers.
Chicago Apartments for rent are located throughout the 77 communities of Chicago and now are branching out to many of the suburban areas. Many are former commercial and industrial building that have been converted and now used for residential purposes. If you are interested in living in a vibrant city such as Chicago, apartment living offers a variety of choices that I am sure you will not be disappointed.
