Chicago Home Buyer Protection Plan – Buy For The Future

It was only five or six years ago that Chicago home buyers bought with one thing in mind reaping an almost instant profit their investment. The market was appreciating by leaps and bounds and you could turn around and sell the property you just bought at a sizeable profit.

Short Term Investing

Many of the buyers I worked with back then were ‘twenty and thirty something’, upwardly mobile with lifestyles in constant flux. They bought with the idea that they would be in their new home from 3-5 years, but the reality was often shorter (2-4 years). Job changes, marital/partner changes, income changes, increase in family size, no longer wanting roommates, tired of the neighborhood, and rapid appreciation instigated many moves, and buyers bought for the short term knowing they could easily sell with a profit, and move on to something that was better suited. They invested for the short term. At the time, short term was a wise investment.

Long Term Investing

In today’s market, I have these same ‘twenty and thirty something’ Chicago home buyers, but I am advising that they buy for a longer term. Short term real estate investing is not where it is at. For instance, I am working with two newly wedded couples who are planning a family. One is on the price cusp between a really great 2 bedroom condo or a 3 bedroom, which has the size they will require in a few years, but is older, or in a lesser valued location.  My advice is to buy with their future size needs in mind. They can’t just think about what their needs are for the immediate future or even 2-3 years, but need to think longer term…4 to 6 years.

Another couple I am helping buy a Chicago home loves penthouse condos, and have already committed to a 3 bedroom, but are realizing that they should adjust their taste to accommodate their future need for few stairs because carrying the baby, car seat, stroller up 3 flights of stairs will be impractical in 2-3 years.

Should I Invest In a Chicago Home

You might be reading this article and thinking, “Buying a Chicago home is no longer a good investment. I might as well rent.” This couldn’t be farther from the truth! Historically buying a home is an excellent investment with continued appreciation. Yes, there are some bumps and market corrections along the way, but long term Chicago homes continue to increase in value. We are now in a good market correction and THIS is the time to buy. The old adage is buy low and sell high. Many wealthy investors have gone by this philosophy and have a valuable portfolio to show for it.

Another excellent reason to buy now is historically low interest rates. You can own a Chicago home for less than you can rent and you can also take advantage of the mortgage interest tax deduction. The only caveat to this being an excellent time to buy is, buy for the long term and plan on being in your home for at least 4-6 years.

If you are trying to decide if buying a Chicago home is right for you, give me a call. I’m glad to review your situation with you and help you make a good buying decision!

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