Profile picture for tjgolebi

Buy vs rent

I am looking to rent a new 2 bed/2bath apartment and have found the rents will run between 2100-2500 per month. Is it cheaper for me to buy? I am only planning on staying in chicago for another 3 years. Thanks!
  • January 25 2014 - Chicago
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Answers (11)

Profile picture for Ihor Pochay
Run the numbers with Realtor and loan officer first and then decide which way is cheaper! Right now is better to buy as the rates are low and real estate is appreciating. Plus you will be able to get the tax benefits by owning a property.
  • January 26 2014
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Rent prices are so high right now! Talk to a lender (really, it's easy and not that scary) and they will be able to tell you exactly how much it will cost you. 
  • January 26 2014
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Profile picture for Rita Walker
It is less expensive to own than to rent right now. If the savings are great enough, I see no reason to rent.
However, it would be best to speak with a good Realtor in your area and ask them to run some numbers for you.

Good Luck with your search.
  • January 26 2014
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Chicago home values are up 15% since March, according to the Case-Shiller Index, http://us.spindices.com/indices/real-estate/sp-case-shiller-il-chicago-home-price-index, so for all those people who were told, "Wait to buy," you missed a bus.

Will you miss another one? Who knows.  My personal feeling is that you should live the way you want to (and can afford to) live, and keep your real estate investments separate. If you buy a home because of the investment potential, you've basically turned your home into a workplace, which means you have no place to go to escape work!

So - we don't know. Home values are the same now (in Chicago) as they were three years ago, but like I say, last year was a buying opportunity.

All the best,
  • January 26 2014
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Profile picture for SteadyState
It is most unlikely you will break even in 3 years - if you are comfortable loosing some money for the living in a home than go for it. Despite what the agents say financially it will not make you money in 3 years.
  • January 26 2014
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Profile picture for Evelyn S. Fred
[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]


http://www.chicagobusiness.com/realestate/20120320/CRED0701/120329985/mind-over-money-for-chicago-renters#
  • January 26 2014
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the exit plan you mention and the nature of your question has me leaning toward renting ..but the word "planning " always ends up meaning if nothing changes.. I assure you in 3 years lots will change so I think you should buy a place and move in mentally and physically and enjoy the city..owning is a very different energy than renting.  It is cheaper to rent if that is all that matters.
  • January 26 2014
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Profile picture for Matt Laricy
For the most part, its cheaper to buy right now. I would meet with a good buyers agent. They will be able to break down the differences to you.
  • January 25 2014
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Profile picture for wetdawgs
It is rare for ownership for only 3 years to be cost effective.   In addition to the financial aspects, there are the  time and headaches of buying the home initially as well as putting it on the market when you leave.

Have you tinkered with the NY Times buy vs rent calculator?   It will help you evaluate a number of projections.
  • January 25 2014
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It can depend on a variety of things. How much will it cost you to buy a 2/2 in the areas you want? How long do you plan to hold on to it? 3yrs is not long and while the market has improved, there is no telling how well it will continue and there are costs on both the buy and sell side so it is possible that you might lose money, but maybe make a few $$. You also need to factor in taxes and assessments for the 3yrs.
  • January 25 2014
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It is typically more cost effective to own vs rent.  Keep in mind, any rent that you pay goes to the owners equity and you never see it again!  When you own, every dollar paid for mortgage that goes towards your equity is, in essence, a built-in savings account.  You may also have tax deductions from the tax and interest you pay on a mortgage.  I would contact a local Realtor to have them do an analysis for you comparing rentals vs buying (I do the same for my market, but I am not well-versed for Chicago).  With the housing prices still low and the mortgage rates low as well, it is an excellent time to buy!
  • January 25 2014
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