With the state of the economy being in a shambles and the Chicago real estate market being in a slump, many people think that now is not the time to be investing in Chicago condos. However, experienced investors would tell you that the time to invest is when the market is soft, not when it is booming and NOW is definitely the time to invest. Here are many reasons why NOW is the time to invest in Chicago real estate and buy a Chicago condo.
- Buy low.
Wise investors will tell you to buy low and sell high. The Chicago real estate prices are the lowest they have been in five to six years. Will they go lower? Maybe, but they can also start going up again at any time and spring/summer is the best market time. Once prices start appreciating again, you have lost out on the best price. Also prices may go lower, but interest rates going up this will cancel out the lower price.
- Better than a dorm room.
As Chicago condo prices have decreased, rental prices have increased. If you have a son or daughter in school, you know the price of a dorm room isn’t cheap either. Investing in a condo to house your college student will result in a long term cost savings. With prices as low as they are, your Chicago real estate will appreciate over a four year period and you can sell it for more than you bought it for or hold on to it as income property.
- Numerous tax benefits.
There are many tax benefits to investing in a second home. You can deduct the interest on mortgage loans of up to $1 million used to buy or substantially improve your condo ($500,000 if married filing separately).
If you use your condo as a residence and rent it for 15 days of the year or more, you must report rental income. You can also exclude up to $250,000 ($500,000 if married filing jointly) on the gain of the sale of your second home if you owned and used the home as your main home for at least 2 years during the 5-year period ending on the date of sale. (Tax laws change frequently so please contact your tax advisor prior to purchasing.)
Many retirees are discovering that living in the city and owning a Chicago condo is convenient, invigorating and stimulating. Instead of having to spend time and money on the commuting by train or driving into the city, you can walk to all that Chicago has to offer. Cultural events, museums, restaurants and any type of entertainment you can imagine is at your fingertips.
- Quaint and stylish neighborhoods.
Chicago condos are not a one size fits all. You have varied neighborhoods to choose from. You might enjoy Lakeview, a north side community of Chicago made up of a cluster of diverse neighborhoods with a youthful atmosphere. Lincoln Park appeals to many young professionals, recent college graduates and young families who are looking for an upscale and vibrant, tree filled neighborhood close to the Loop. Charming Old Town has some of the city’s most beautiful Victorian buildings, while Streeterville boasts the tallest skyscrapers. The Gold Coast is one of Chicago’s wealthiest neighborhoods offering architecturally significant residences. River North is a chic, cultural hub filled with art galleries, antique stores, boutiques and is a favorite with urban professionals. Lakeshore East is a master planned, mixed use development being built on the northeast side of the Chicago Loop. The West Loop neighborhood, known as the Loft District, is now an urban oasis with a wealth of art galleries and true loft spaces. Printers Row is an eclectic, artsy and tightly-knit neighborhood with a rich past. The South Loop offers lakefront living in loft conversions and new luxury high rises.
Learn why ChicagoCityHomes and Karen Breen Elia are your best choice when buying Chicago condos? Send me an email or give me a call. I’m here to help!