Posts Tagged ‘tips for home buyers’

Chicago Home Buyer Protection Plan – Buy For The Future

September 16, 2010

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