Owning WAY cheaper than renting: Chicago.

Eddie
Is that you?

Chicago? Is that in Queens?

why make a point of it? id bet owning is cbeaper then renting in atlanta too. this is ny, right?

Wow - less than 7 times annual rent? In NYC I think we are still in bubble territory as far as price goes. Is it possible to have a rent bubble instead? 'Cause if it is then Chicago probably has one . . .

dumbboy

Is it possible maintenance is crazy or something?

Having trouble reconciling the 2.8% mortgage for a rental property

dealboy what city and state did you get that mortgage rate?????????????

This might just be a case of people needing to be paid to live in Chicago. ;-)

Seriously, great ratio (although what is maintenance)...

Also, I had always heard anecdotally that Chicago is great for renting out apartments, as there is tons of short term demand from students and such who can't really buy.

Chicago real estate started hurting prelehman.
I wouldnt be surprised at those numbers for owning except the mortgage. Some hedgefund 5/1 arm Im sure.

Chicago is a beautiful city 4 weeks out of the year like Montreal.....August. It is too damn cold. But the women (like Montreal) are beautiful.

Agree with swe - we'd need to see maintenance and taxes to get a better understanding.

Bottoms, you're really quite clever.

BJW and SWE
I'd bet it's not bad.
There was a lot of overconstruction between McCormick center and downtown.
Inventory for sale is Chicago's biggest problem.

Last time I was there, I did see a lot of residential construction, including in the areas not quite central, wondered who would actually be buying... a glut wouldn't surprise me.

Vegas is still nuts too. I know people buying (off the strip) units at $60 per sq ft.

I lived in Chicago a number of years back, visit friends there quite often. I think it's a beautiful city - used to call it "New York Lire". Only about 5 degrees colder than NY, but the wind off the lake is hell.

BUT, look at what $1.5M can buy you in Chicago - as in a 2,500 sf condo in Lincoln Park overlooking the park and the lake (and that includes two parking spots).

sorry "New York LITE"

Also, great theater, and the miles of lakefront bike paths, beaches, etc. are great.
Negative = still need a car for a lot of everyday stuff, as a lot of food shopping, retail etc. is within sort of "mini malls"

A lot less emphasis on the 5 degree part, the devil in the wind part.

Love the restaurants, the best chop salads.

I believe there is a huge glut.
They overbuilt, and need to work through the inventory overhang.
After that is done, prices will be back to normal.
People are buying stuff for $100k that was sold for $450k a few years ago.
A legitimate RE crash.

$600 month association. Includes heat, ac, cable, fitness, doorman etc.
$400 month taxes.
Mortgage is 5/1 arm.

chicago is a fun city. The riverfront core in streeterville, and just below that are off the park has beautiful highrises with reasonable prices compared to NYC, The waterfront area with the running trails is very active and busy albeit only during a few months a year. I have had a great time in chicago every time
i've gone to town. It's not NYC but its a nice second choice.

...until someone shoots you... tons of violence in Chitown

What is the dating scene like there?

dealboy, are you also hole4?

I live/work in NYC but work for a Chicago headquartered company and work very closely with my counterparts over there. The feedback I have gotten from colleagues that are in the market to buy out there is that the selling prices sound reasonable until they hear the common charges and taxes. One of the Directors shared with me his experiences of shopping for a condo in Chicago and said the common charges and taxes amount to far more than the mortgage (with 20-25% down payment). He has given up his search for condos and is instead thinking about buying a single to three family house.

Well while Chicago's real estate has declined 50%, the maintenance and taxes have not (and will not) so the director's point is hardly grounds for dismissing condo purchases.
I'd even bet while manhattan majority maint/taxes ranges 1$ to $2 per square foot. Chicago is .50 cents to a $1.
But when you apply current sales conditons of what....$300/$400 per sq ft? Yeah maint/taxes seem way too high.