I think I'm missing something, if I am please help me understand what it is. I currently live in a lower cost area of Chicago, paying ~$1k a month in rent. I was recently looking at some houses, and it seems foolish to buy something in this market instead of renting.
To specify, to have a similar living situation (2 br, 1 ba) I would end up paying roughly 40k down on a 200k condo. With extremely high property taxes (that are unlikely to go down), in the neighborhood of 4-500 a month, and highish HOA fees around 100 a month. Once you factor in property insurance, mortgage interest, and maintenance I would be straight up losing money relative to renting. Adding to this, if I were to save the equivalent amount (that would be paid towards a mortgage), and invest it in the stock market I would end up being better off in the long-run, especially since the real-estate market here is not poised to appreciate. Something is not adding up here right?
The only thing I can think of doing is just buying a multi-family property and living in one of the units.
Submitted August 08, 2019 at 10:09PM by BlueCranium https://ift.tt/33mXtGc
