Are you thinking about buying a condo in Chicago? Here are some questions to ask yourself before making the purchase!
Whether you are buying a condominium for yourself or as an investment, there are a few things to consider before buying. You don’t want to find yourself stuck in the wrong place or in the wrong community. Condos are usually heavily regulated by an HOA, so it is important to make sure you are comfortable with the bylaws of the community. Below, we offer some things to ask yourself before buying a condo in Chicago!
What Are The HOA Fees?
When you own a property in a condo community, there are going to be HOA fees. It’s important to know what these fees are, what they cover, and the rate at which they can be increased. If you are living there yourself, you should add the HOA costs to your monthly expenditures. If you are renting out the property, you’ll need to factor in these costs when setting the price of the rent. A condo in a community with few amenities will rent for much lower than the same condo in a community with lots of benefits and perks.
What Is The Policy On Renting The Condo Out?
Be sure to read all the rules and bylaws in place in the community. Some communities have rules about renting the condo out to third parties. Typically, using the condo as a vacation rental on sites like Air B&B won’t be allowed.
Is The Complex In Demand?
Take a look at the recent sales as well as other units for rent in the area. How long are these properties staying on the market? If they are being snapped up pretty quickly, its a sign that the property is in demand and will increase in value over a relatively short period of time. As an investor, you’ll want to make sure that you will be able to find a high-quality tenant right away. While some vacancies are normal, you don’t ever want to risk being stuck with a vacant unit over a long period of time.
How Will It Meet Your Needs Longterm?
Many people will purchase a condo as an investment with the goal of using it themselves during retirement. Once you’re retired, you may not need the space, yard, or hassles of a single-family home. If you plan on solely renting it, make sure it is an area that is appreciating, with positive future development plans in the works. When buying a condo in Chicago, you’ll want to make sure it will be beneficial for you for years to come. Of course, if you are flipping the property, this won’t apply.
Are The Rules And Regulations Reasonable?
An HOA puts rules and regulations in place in order to maintain a high quality of life for its residents. For example, you don’t want to hear music all night, have strangers park in your spot, or worry about the shared areas being dirty or full of litter. However, it’s no secret that some HOA’s go overboard with what they demand of its residents. Everything from what’s on your patio to the color of your interior curtains can be regulated. While some people appreciate the order, others can feel like they are losing their sense of freedom. Before purchasing a condo in Chicago, make sure you are comfortable with the rules of the community.
Purchasing a condo in Chicago is an excellent way to begin or add to your real estate portfolio. Once you know what to look for and where to buy, purchasing condos as an investment can be a very profitable practice!