This is the first time in history that housing prices have dropped to 10 year lows, interest rates have fallen 50% since year 2000 and rental prices have risen to all time highs.

You can buy a place with as little as 1% to 3% down. Just about the same you would put down to rent a place with your first month's rent and deposit.

Time Frame:

We can close on a place within 21 to 30 days from the time you choose it.  Short sales can take 3 to 6 months. We can sublet your current rental in Chicago for when you get a closing date set for your new condo.  

Year 2000 Example - Purchase:You could buy an updated 1 bedroom condo in the Gold Coast for around $175,000 in year 2000 at and interest rate of 8.5%. At this interest rate, your full payment including interest, principle, assessments, and tax would have been around $1800 a month.  Rents at that time were hovering around $1000 a month for places like this.

Year 2011 Example- Purchase: In today's market, you could buy the same place for a similar price but at a rate as low as 3% to 4%. This would put your full payment around $1200 a month. This same place now rents out for $1600 a month.

Immediate Cash Advantage:As you can clearly see from example above,  you could have an immediate $400 a month advantage over renting a place. Wait... there is more, you can take an income tax deduction for real estate taxes and interest on the loan. These home owner tax advantages credit could set  your effective monthly cost as low as $900 a month.  This spread is as far as I have ever seen it. You could rent a place for $1600 a month, or buy a place for an effective rate of  $900 a month.

Price Increase:The 3rd advantage I have mentioned is the house price increase. We all know the market has been tough and no one knows the exact bottom. You will have to access the data and choose for yourself when the best time to buy would be.  

Suggestion: If you can buy a home for less then you can rent it out by such a large margin, we are at or close to a bottom. Again, this has to your choice and Allstar Realty is here to help. 

Would you want to rent out your condo to others if you move? The rule of thumb in Real Estate is generally that prices can rise 3 to 6% a year on average. Of course, the last 4 years, we have done the reverse and that is why this opportunity exist to buy a place for less than rental prices.

When you can buy for less then renting and get a nicer place then a rental, you are in the driver's seat. You can make this a long term investment, or use it as your personal residence. When you lock in your rate, your mortgage cannot go up unless they raise taxes or assessments. We all have experienced the yearly increase of rents and wish they always kept it the same rate, but they typically don't. There are so many benefits to owning property at these levels. Please call me to discuss your options.

Prices have fallen, rents have risen and low interest rates are the frosting on the cake for low mortgage payments. It's the first time I can think of that interest rates have fallen, and home prices have fallen along with them.  This type of circumstance has created what I call a once in a life time opportunity to buy your new home at amazing discounted prices and reduced mortgage payments.

 How do you figure out what your mortgage will be? Take the asking price times .70( less than 1%)  to determine what the mortgage could be? It's not an exact science, but more of a general rule. Taxes, Assessments, Down Payment, Final Interest Rates, etc can all effect the final monthly payment. Please consult a mortgage broker for more exact figures.

 Contact us anytime to go over your options.