- Home buying power is steadily rising at a 21% rate in the United States. If you are going to buy a home, commercial property, land, or any other kind of real estate, you have to start by focusing on specific areas.
Chicago, known as the “Second City”, is a 5-Star location and perfect if you’re interested in purchasing a property. You may, however, be wondering what the best properties are or where to look. With tons of great options, knowing where to begin can be a challenge!
What areas have the best schools? What’s the most convenient for your industry? What’s your price range?
Luckily this article has all the details you need, and more. Keep reading to learn more about Chicago properties so that you can invest in real estate today!
Study Up on Chicago’s Neighborhoods
To see the best properties Chicago has to offer, look no further than its beautiful neighborhoods. The uniqueness of a city’s neighborhoods is what brings the charm and quality of life.
Some of the impressive neighborhoods that Chicago boasts include Logan Square, Lincoln Park, West Loop, Hyde Park, Lake View, River North, and Old Town.
Each neighborhood offers a different slice of life, along with different property values, walking scores, and commutes. If you’re buying a home in Chicago, picture yourself living in one of these neighborhoods and visit in person to see if it’s a fit.
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Chart Out Your Real Estate Goals
Figure out your real estate goals before painting yourself into a corner with any decisions.
Many first-time homebuyers look for starter homes. This can be a condo or an inexpensive single-family home. After living in this home for a few years, it can become an investment to sell or rent out.
Some investors look into cheap houses for sale that they can fix up and flip. Know what outcomes you are hoping for and let it guide your steps as you explore Chicago real estate.
Learn the State of Real Estate in Chicago
Take several months studying Chicago real estate to know what you’re getting into.
Chicago real estate properties have a median sales price of $270,000, and these values are steadily increasing at a rate of close to 13%. With property values on the rise, expect more sellers to enter the market.
This creates a lot of movement and several opportunities for new buyers looking to own property.
Numbers aside, take time to drive around so that you can get a feel for the real estate. Notice which parts of town have “For Sale” signs more than others, and where all the new developments are planned.
Real estate deals involve a mixture of factual study and gut instincts, so be sure to hone both.
Consider Your Budget and Financial Capital
So, how much are you looking to spend on your property? Knowing this early in the game will help you avoid overspending.
Consider your monthly and annual income, in addition to your net worth. Only purchase a property that you can easily afford to pay for each month even if you’re dealing with financial shortfalls.
Look at the total cost of ownership (TOC) for a home and not just the sales price. Purchasing a newer home that doesn’t involve a lot of maintenance and repair will keep more money in your pocket for the initial years.
Study first-time homebuyer benefits if you’ve never purchased a property before. Putting down 20% for a down payment is a great idea, and first-time homebuyers can sometimes close on a home with little or nothing down.
Understand the Tax Rate for Your Properties
Always know what Chicago property tax you’re signing up for when you buy a property.
Right now, the state of Illinois has the second-highest real estate taxes in the United State. Find out how the tax rate has gone up or down in recent years, and whether or not this will affect your purchasing power.
When you study the Chicago property tax rate, you have to look at the surrounding county. Chicago is located in Cook County, which is the largest country in Illinois.
Cook County currently has a 2.1% property tax rate.
Have Professionals That Can Assist You
Get the help of real estate professionals that can help you achieve your goals.
If you’re looking to rent properties to tenants, you’ll have to study property management Chicago professionals that can assist you. Property management companies can conduct a lot of business on your behalf.
Some of the jobs they do include collecting rent from tenants, making sure that the property gets repairs, and listing the property when it’s time to make a deal.
Other professionals that you might want to hire include real estate agents, lawyers, and accountants.
Search for Liens and Study the Property Records
Do your research upfront so that you don’t hit snags when it’s time to close.
Always start with a lien search, whether you’re interested in residential or commercial property for sale in Chicago. The real estate professional that you hire can also help you search Chicago property records.
Any property that you purchase should have a clean title and no holdups.
Treat Property Investing Like a Business
Figure out whether you’re a one-time buyer or investing for the long haul. If you want to invest, you have to treat it like a business.
Start by keeping plenty of accurate records and creating reports that help with your transactions. Maintain bank accounts and e-mail accounts that you use for real estate, and carve out some time each week to work on this business.
Many real estate investors rent office space or create a home office. Look into the home office tax deduction if you regularly use it for your investing business.
Start Investing in Chicago Properties That Can Grow Your Net Worth
Chicago properties can provide plenty of value to you when you invest wisely. This is an area with plenty of potentials if you’re interested in researching and doing the work.
Bookmark our website and read our other articles whenever you want to learn more about real estate investing.
