Chicago has always been known for its tall buildings and metro area, but people want to know if starter homes are still popular for new buyers. In this article, we’ll have a look at what a starter home is and whether or not they have been selling in the last few years in Chicago.
Some of these facts might surprise you, and you might end up learning quite a bit about whether or not starter homes are on the rise in Chicago.
What is a “starter home”?
A starter home is the first home that a buyer or their family purchases until they can save up and afford a “forever home” that they can grow into. These homes are typically smaller and less expensive and are meant to be a springboard to better and bigger houses.
Does a starter home have to be a house?
Condos are abundant, and there are always more being built, so it’s easy to find one that will suit your needs and budget. In metro areas like Chicago, New York, and Los Angeles, houses are a little harder to come by, so for many, purchasing a condo over a home is the best way to go. Condos typically run less than a home would, and it allows the owner to get a good grasp on ownership before they go ahead and purchase a home.
Condo vs. home: Which is better for you?
There are quite a few differences between owning a condo over a home, and if you can afford both, then you should look at what each one actually entails before you make your choice. Let’s have a quick look at the differences between the two.
Homes: Your home will likely come with a piece of land or a yard that you will need to maintain, along with the regular maintenance that comes with home ownership. You will be able to make drastic changes like removing walls, but you will also need to worry about your resale value in the future. Homes are also usually more expensive to mortgage for many different reasons, but they are almost always larger than a condo, so they are the best choice for growing families.
Condos: While you can’t change much about the interior of your condo, you don’t have to worry about many of the significant issues that might come up with your home. It’s unlikely you will have a yard, but you may have access to green space so you can take your pets or kids outside. You’ll also have the chance to live luxuriously by owning premium condos which are cheaper than SFHs. You will be saving yourself some money when it comes to payments, but you will be losing out on space and freedom.
Both of these options have their pros and cons, and it all depends on what works best for you and your family. If you need the space, then you should look at smaller homes in the area that might be good for starting out and then branch onto larger homes.
If you can’t quite afford a smaller house just yet, then financing a condo might be the way to go. A bank is more likely to give you a loan for a property that has most of its liability under a company instead of financing a home that might end up needing significant repairs.
What is the best way to go if you live in Chicago?
Choosing between a house and a condo depends on what you are looking for when it comes to your starter home. There are currently over twice as many condos available as there are homes, so you will likely have a better chance of looking for a condo. The prices are very similar for the same amount of rooms but keep in mind that you will have extra upkeep costs with a home.
The condos for sale in Chicago are primarily located in the downtown and metro areas, so if you are working there, this is a perfect spot. The homes in Chicago are all over the map, so you might end up finding something you enjoy that is just too far of a commute for you.
While many finished homes are available, many require updates or repairs to ensure their livability, while condos are always move-in ready, so you don’t have to spend any extra on top of your initial down payment.
Choosing what type of starter home works best for you is one of the best ways to get yourself off on the right foot financially. You don’t want to overextend your income, and you want to make sure you are getting a home that works for you. Choosing a condo is one of the best ways to ensure you can save some money for the future while still getting a good idea of what ownership is like.