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© Jake Tasharski | Chicago | Illinois

JAKE TASHARSKI IS A REAL ESTATE AGENT AFFILIATED WITH COMPASS, A LICENSED REAL ESTATE BROKER WITH A PRINCIPAL OFFICE IN CHICAGO, IL, AND ABIDES BY ALL APPLICABLE EQUAL HOUSING OPPORTUNITY LAWS. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATIONAL PURPOSES ONLY. INFORMATION IS COMPILED FROM SOURCES DEEMED RELIABLE BUT IS SUBJECT TO ERRORS, OMISSIONS, CHANGES IN PRICE, CONDITION, SALE, OR WITHDRAWAL WITHOUT NOTICE. NO STATEMENT IS MADE AS TO ACCURACY OF ANY DESCRIPTION. ALL MEASUREMENTS AND SQUARE FOOTAGES ARE APPROXIMATE. THIS IS NOT INTENDED TO SOLICIT PROPERTY ALREADY LISTED. NOTHING HEREIN SHALL BE CONSTRUED AS LEGAL, ACCOUNTING OR OTHER PROFESSIONAL ADVICE OUTSIDE THE REALM OF REAL ESTATE BROKERAGE.

Truth is, Owning in Chicago still 47% Cheaper than Renting

February 27, 2014

It's important for first time buyers to take a step back and look at the market in a broader sense; not what has happened in the past 5 years but rather the last 10 or even 20. Doing so will help to solidify why it is still such a great time to take the plunge into home ownership. 

 

Ones budget heavily relies on a homes purchase price and mortgage interest rate. With current rates still hovering around 4.5% it is still 47% cheaper to buy then rent in Chicago. What about the recent appreciation in prices? Across the city many neighborhoods saw home prices hitting double-digit increases year over year. Although this has impacted affordability, it has only done so marginally. To put things into perspective it was 50% cheaper to own then rent in Chicago last year. 

 

How much would interest rates need to jump before before renting trumps buying? In Chicago they would need to increase by a whopping 150% (or just under 7% interest). This may seem high for Millenials but in 2000 interest rates averaged 8% and in 1990 over 10%. 

 

Of course all this irrelevant unless you plan to stay put for a while, save for a good amount down, and properly itemize your federal tax deductions. Buying isn't for everyone but with the current market conditions a unique opportunity exisits, one that wont last forever. 

 

Whether you are looking to buy or rent, expert representation is a must. Contact me to set up a consultation today. 

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