Experienced investors will tell you the time to invest is when the market is soft, not when it is booming. The economy is in a shambles and the Chicago real estate market is in a slump making this the time to be investing in Chicago condos. 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 and Chicago real estate prices are the lowest they have been in five to six years. Could they go lower? This is a possibility but they can also start going up again at any time. Once prices start appreciating again, you have lost out on the best price. Also prices may go lower, but if interest rates go up this will cancel out the lower price.
- Better than a dorm room.
If you have a son or daughter in school, you know the price of a dorm room isn’t cheap. As Chicago condo prices have decreased, rental prices have increased so investing in a condo to house your college student will result in a long term cost savings. Also, 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 also tax benefits to investing in a second home. First, the interest on the mortgage is tax deductible. You can deduct the interest up to $1 million used to buy or substantially improve your condo ($500,000 if married filing separately).
However, if you use your condo as a residence but rent it for 15 days of the year or more, you must report rental income. However, this is offset by the fact that 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 city living 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. This lifestyle makes owning a Chicago and attractive investment.
- Quaint and stylish neighborhoods.
Chicago neighborhoods are not a one size fits all. There is a wide variety 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!