Our Favorite Penthouse Is Back and Now Reduced 52%: 6030 N. Sheridan in Edgewater

We last chattered about this 3-bedroom penthouse at 6030 N. Sheridan in Edgewater in October 2008.

See our prior chatter here.

Listed for $1.16 million, 3 years later it has now been reduced to just $549,999.

If you recall, the penthouse has a 1,000 square foot private terrace with some lake views.

There is also a cedar lined year round sunroom with a jacuzzi.

The kitchen has cherry cabinets, stainless steel, and granite counter tops.

The unit has in-unit washer/dryer and it appears some of it has central air (although there are window units in some of the bedrooms as well.)

Parking appears to be rental in the building for $165 to $200 a month.

After all these years, is this property FINALLY priced to sell?

Kieran Conlon at Conlon has the listing. See the pictures here.

Unit #2201: 3 bedrooms, 3.5 baths, 2600 square feet, 1000 sq ft terrace, two car parking

  • Sold in April 2003 for $700,000
  • Was listed in May 2008 for $1.16 million (2 car parking included)
  • Reduced
  • Was listed in July 2008 for $999,000 (2 car parking included)
  • Was under contract in the summer
  • Reduced
  • Listed in October 2008 for $899,000
  • De-listed
  • Reduced
  • Currently listed at $549,999
  • Assessments of $944 a month (was $755 in 2008) which includes heat, doorman and cable
  • Taxes of $3354
  • Central air (in only part of the unit?)
  • In-unit washer/dryer
  • Rental parking for $165 to $200 a month
  • Bedroom #1: 20×20
  • Bedroom #2: 20×14
  • Bedroom #3: 17×13

96 Responses to “Our Favorite Penthouse Is Back and Now Reduced 52%: 6030 N. Sheridan in Edgewater”

  1. I think that it is finally priced right. It should sell for 475-525k.

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  2. As I said in the other thread, there were server issues all day yesterday and last night. I couldn’t get into Crib Chatter to do any posts. So there will only be this one post today.

    Sorry!

    We’ll be back to the normal schedule tomorrow (hopefully).

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  3. Why are the taxes so low?

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  4. The living space in this place looks like a big ugly party room from nineties IMHO, but I guess at this price it will find a buyer.

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  5. Could be the fact that home prices are up, GDP is up, unemployment is stable… Nothing to really talk about anymore.

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  6. Sabrina, are you really of fan of cherry cabinets and black granite?

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  7. “Why are the taxes so low?”

    Grossly underassessed. Assessor has:

    Estimated 2011 Market Value: 188,260

    I was expecting senior freeze or something, but it doesn’t even have any exemptions

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  8. the old thread is a fun to go back and read. a lot of them from fall 08 are. seems like Ze was posting as IB then.

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  9. The interior is slightly dated and the layout looks a bit funky, but I think this should find a buyer at close to the asking price. Someone will pay up for the penthouse and the view. The year round jacuzzi would be nice to have as well.

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  10. I actually think this place is pretty cool. Some of the finishes are a little dated but this is a lot of space for the money and has amazing potential. Low assessments too for a large building like this. I like that all the bedrooms are pretty large too. Is the outdoor area off the living room? Couldn’t really tell. Would be great for parties.

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  11. This building is FUGLY with a capital F. Looks like Soviet, or Chinese bloc housing.

    The big problem with this unit is the fact that the terrace (which is the only big selling point) faces directly into another highrise to the east about 25 feet away as you can see from picture #10 (unless of course you look straight south, like the listing photos do, it would appear there is a nice view from that angle, the rest is being loomed over by the neighboring highrise.

    Also, that October 2008 discussion was great, I got married around at that time, and the previous weekend (the 4-5th) was the weekend that they announced the 800bb bailout. Man I lost a shitload of money that month! Times now a days seem so much better LOL!

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  12. To call these views “incomparable” is quite a stretch. Mostly it looks like you’re looking right at other buildings. Also, this building has absolutely no charm, and the neighborhood leaves a lot to be desired.

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  13. The deck is fantastic! I’m not sure if a condo in an Edgewater high rise warrants the price though. My parents just sold my grandpa’s 900 square foot one bedroom a block north (with lake views) for $65,000 and they felt lucky to get that price. These buildings just aren’t appealing to people anymore. Sadly, my grandparents purchased their condo in the 1970s for $45,000.

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  14. I lived across the street and looked down on this unit for years and was envious of the space. The building is almost exclusively studio and 1-br condos and I’ve heard there are many in foreclosure.

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  15. This building is a dump.

    This price would be warranted if this were a beautiful building like 5510 N Sheridan (which has penthouses) or a couple of other really fine Edgewater high-rises, but $500K-plus is a real stretch in this area for any condo in this area.

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  16. Jenny, why is it “sad” that your grandparents’ property saw a 50% increase in value?

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  17. I would rather live in this penthouse:

    http://www.urbanrealestate.com/property/215-E-Chestnut-Unit-PH-CHICAGO-IL-60611-YRPAAREPSFD5S.html

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  18. Clio, pretty much any other property would have increased more than 50% in that time. You could have bought a pretty nice house for that price in the 1970s. My grandma really wanted a house, but my grandpa thought the condo would be safer. They looked in Highland Park and could have bought a small house there for a similar price. I highly doubt any Highland Park homes go for $65,000 these days. It doesn’t really matter my family, but it’s shocking how little it increased in price over 35 years (adjusted for inflation, they probably lost money).

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  19. probably??!!??

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  20. It is shocking to think this place went under contract at $1M in 2008. That (potential) buyer must be glad to have escaped! Even if they lost their earnest money, they still are better off than if they bought this place anywhere near that price.

    Perhaps now it is priced close to selling price, but I wouldn’t go near this building.

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  21. “Could be the fact that home prices are up, GDP is up, unemployment is stable… Nothing to really talk about anymore.”

    We could discuss how your prediction worked out.

    JMM on September 28th, 2010 at 2:59 pm
    “I know HD knows better than the guy who put the index together, so I will refrain from any second guessing. My bet is you see the index stay essentially flat in a band between 120 and 130 for the next year.”

    Now, for the data.

    Chicago CS NSA
    Sep 2010 121.86
    Oct 2010 119.39
    Nov 2010 117.82
    Dec 2010 117.18
    Jan 2011 117
    Feb 2011 116.10
    Mar 2011 114
    Apr 2011 113.48
    May 2011 114.15
    Jun 2011 115.45
    Jul 2011 115.79
    Aug 2011 116.25

    ROFLMAO

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  22. I’m assuming it fell out of contract the second the bank sent the appraiser in who couldn’t contain their laughter. $1.16m?!

    I agree that it’s actually a nice place, although somewhat bland. I think it will go pretty soon, perhaps to someone who doesn’t quite know Chicago as well as they like to think.

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  23. I would rather have that penthouse on Chestnut, too, Clio, if I had the money. That is a wonderful place.

    But it’s not a comparable to the unit featured here. It is in another class and a different area.

    There are a number of comparables in Edgewater, though not many, much better places for the same or slightly more money.

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  24. “My parents just sold my grandpa’s 900 square foot one bedroom a block
    north (with lake views) for $65,000 and they felt lucky to get that
    price. These buildings just aren’t appealing to people anymore. Sadly,
    my grandparents purchased their condo in the 1970s for $45,000.”

    Fantastic! They made 50% and didn’t pay rent for 40 years. What’s the problem?

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  25. o/t alert:

    Most laughably pathetic attempt at a flip ever?

    http://www.redfin.com/IL/Chicago/5137-S-Harper-Ave-60615/home/13950068

    Instant equity!

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  26. Roma, jealous? It is very easy to laugh at people. Why don’t you get off your pathetic ass and actually do something?!!!

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  27. Sabrina, are you really of fan of cherry cabinets and black granite?

    Busted! How did you know?

    Just kidding.

    Why don’t people put in a unique kitchen? I don’t understand it. Why do people all want to live like everyone else- even in the $1 million and up range?

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  28. “Could be the fact that home prices are up, GDP is up, unemployment is stable… Nothing to really talk about anymore.”

    “We could discuss how your prediction worked out.”

    Was that a prediction from Sept 2010 then? Wow.

    Didn’t HD predict the CS would go under 100 for Chicago? Or was that Bob?

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  29. Because they mostly live beyond their means, so they don’t have money to hire an interior designer and are too worried about the resale value. People who buy things with 10% down and are in debt up to their eye balls, don’t get to live a unique life. They are too busy catching up with the Joneses

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  30. I guess you’re right miumiu. I can understand it if you’re living in the $300k to $400k condo. But the million dollar house or condo? Why settle for the same kitchen as everyone else?

    I guess it’s the reason everyone bought that coffee table like 15 years ago from the Pottery Barn catalog (the one with the little drawers.) It got so popular- wasn’t it on the Friends tv show or something too? And then EVERY store made the same coffee table. You’d go to someone’s house and everyone owned that same coffeetable.

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  31. “Didn’t HD predict the CS would go under 100 for Chicago? Or was that Bob?”

    They’ve both claimed it. Bob below. HD talks about nominal 1999 prices all the time .

    http://cribchatter.com/?p=9257

    “I guess it’s the reason everyone bought that coffee table like 15 years ago from the Pottery Barn catalog (the one with the little drawers.) It got so popular- wasn’t it on the Friends tv show or something too? And then EVERY store made the same coffee table. You’d go to someone’s house and everyone owned that same coffeetable.”

    Apothecary table of yore. Dunno what the actual PB table was called, but that’s how one of the friends described its claimed (non-PB) provenance. And miumiu loves PB.

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  32. We are at 2002 and 2001 prices in many areax and its just a hop jump and a skip away from 1999 prices across the board.

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  33. HD – are you a complete idiot? seriously, dude – take a look at the economy – it is on the mend. we are absolutely positively at or beyond the bottom in housing. Things may bounce around the floor a bit, but they will start taking off (they already have). Prices are not going to keep going down – and, deep down, I think you know that……

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  34. “but they will start taking off (they already have).”

    Where?

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  35. JMM is discredited as a salesman/fraud but we already knew that. What is funny is still this place’s asking price in late October 2011.

    Only an idiot would judge an initial list price for what this place is worth. Let’s see:

    1) The building gives me nightmares.
    2) It’s not the primest of neighborhoods.
    3) Assessments are high and have gone up $189 in the past three years. Who is to know this won’t continue?
    4) Parking not included.

    And even someone mentioned the risk of the hot tub leaking. Seriously this building reminds me of CHA. If someone wants to buy here for anywhere near ask go ahead.

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  36. “You’d go to someone’s house and everyone owned that same coffeetable.”

    Anyone have any experience buying anything from Christa’s Antiques on Illinois St.? Man, talk about unique cool stuff.

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  37. DZ, you are right that I like PB quite a bit. That is something I can afford and looks good enough to me and I don’t for the record live in a place that is nearly 1mil so what is your point? Now who is being obnoxious?
    I was making a general point about the fact that people that live in million dollar places today are not as wealthy as one would think. You can challenge or argue against that.

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  38. > Why don’t people put in a unique kitchen? I don’t understand it. Why do people all want to live like everyone else- even in the $1 million and up range?

    That’s b/c most buyers have basic financial sense. They are mindful of things like resale value, supply/demand, market forces, etc. They also have the discipline to save up a downpayment. Smart finance majors, good colleges. Business owners.

    Renters, on the other hand, are poor and broke. They are more dumb. They would do stupid things like having a pink or green kitchen, with disregard to the future (sale). Renters are impulsive and poor at planning. They cant even save up a downpayment. Poor people pay more for everything, including painting their rental kitchen pink. Dumb art majors, state colleges.

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  39. “That’s b/c most buyers have basic financial sense. ”

    When did that start?

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  40. “Business owners.”

    No failures there.

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  41. gringozecarioca on October 28th, 2011 at 5:16 am

    clio.. Drop the amy thing.. You are an absolute freak.

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  42. gringozecarioca on October 28th, 2011 at 5:19 am

    CH.. U r correct. Ze’s more fun… And as for all the expected prosecutions… Sadly, very sadly,, that never happened… But fun to be reminded of my airplane dream… Still gives me chills.

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  43. “Renters, on the other hand, are poor and broke. They are more dumb. They would do stupid things like having a pink or green kitchen, with disregard to the future (sale). Renters are impulsive and poor at planning. They cant even save up a downpayment. Poor people pay more for everything, including painting their rental kitchen pink. Dumb art majors, state colleges”

    Amy….. I think I am falling in love!!! are you single?

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  44. Definitely have a car.

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  45. Bob 2 (Not Bob) on October 28th, 2011 at 9:52 am

    I’m putting in a high end unique kitchen in my place. Don’t really give a shit if I don’t see that money back on resale (I figure I’ll see at least 25% which I’m perfectly happy with). The usual boring junk kitchen is so widespread cuz developers like to play it safe, only way you’ll get something nice is if you do it yourself.

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  46. “We are at 2002 and 2001 prices in many areax.”

    Is that true for the areas you are looking at? A (generally) sincere question.

    “you are right that I like PB quite a bit. That is something I can afford and looks good enough to me and I don’t for the record live in a place that is nearly 1mil so what is your point? Now who is being obnoxious?”

    I never said you were obnoxious (just that the rebuttal that someone else was more obnoxious didn’t seem that persuasive). And I actually think you’re significantly less obnoxious than the median regular commenter here. And I have nothing at all against PB.

    Also, this place isn’t a ~$1 million dollar place, nor was it ever, really.

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  47. DZ, where do i fall on your obnoxious spectrum in regards tot he medium and mm. also who are at the extremes, besides the obvious one whose posts i dont read mostly

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  48. I would like a unique kitchen. There just isn’t that much available in the lower price range. I plan to stay at my place for many years, so I am interested in buying things I like… I just bought a new refrigerator. I would have loved to buy a unique color – maybe dark blue or something, but the only options were black, stainless, or white. I went with the stainless only because the rest of the appliances are stainless. If there was a larger range of colors, I would have gone with blue. I would probably be in the minority to want a blue refrigerator, so it would hurt resale a bit, but I want to enjoy my home while I live there.

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  49. Bob 2 (Not Bob) on October 28th, 2011 at 10:52 am

    “I would have loved to buy a unique color – maybe dark blue or something, but the only options were black, stainless, or white.”

    Time for a custom paint job!

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  50. “where do i fall on your obnoxious spectrum in regards tot he medium and mm. also who are at the extremes, besides the obvious one whose posts i dont read mostly”

    Before I posted, I put together a list based on this thread only. Obnoxiousness is highly subjective obviously, so I took it to mean people who posted derogatory comments about other commenters on cribchatter. List is prob skewed toward the more obnoxious as there were some commenters I wasn’t sure were regulars but they might have been and I’d prob remember if they were more obnoxious.

    Anyway, the ranking I cannot reveal, but you and miumiu were both right below the median. Neither of you really say a lot that is critical of others, except in matters clio related in some way. I did median b/c I wouldn’t even know how to do an average obnoxious calc because of difficulties in assessing the extremes. Almost everyone might be below average.

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  51. “Most laughably pathetic attempt at a flip ever?”

    Funny you post that…I was in a contract for that place back in late 2009 to early 2010. The appraisal wasn’t passing underwriting because it was such a unique property–a frame rowhouse–and nothing similar had sold in the area recently. I found a local bank that would finance but the terms weren’t as good as a conforming loan, so I dropped my offer price to around $150k. The bank balked and I walked. This flipper came in later, bought it, and laughably listed it for about 5X their purchase price. So, I agree with your assessment…this flip is a joke.

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  52. “That’s b/c most buyers have basic financial sense. ”

    wow this comments takes the price for the funniest comment of the day : )

    Which set of buyers you think have the most financial sense:
    a) the ones in short sale
    b) the ones in foreclosure
    c) the ones renting out their property and still bleeding monthly
    d) ones that cannot move as they are too under water
    e) all of the above

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  53. Thank goodness DZ, because I was starting to think I don’t understand the culture at all after leaving here for nearly a decade if my posts are the obnoxious ones : )

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  54. gringozecarioca on October 28th, 2011 at 1:38 pm

    “so I took it to mean people who posted derogatory comments about other commenters on cribchatter”

    Any negative comments directed towards Clio or Clios multiple personas should be counted as 0.

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  55. “Any negative comments directed towards Clio or Clios multiple personas should be counted as 0.”

    But that would take out 90+ percent* of the negativity. Oh, I see where you are going with this…

    * If we set aside dan the first’s deleted comments.

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  56. Which set of buyers you think have the most financial sense:
    a) the ones in short sale
    b) the ones in foreclosure
    c) the ones renting out their property and still bleeding monthly
    d) ones that cannot move as they are too under water
    e) all of the above

    ___

    f) The people who bought in any of the last 100 years, except the last 3 (ie: 97% of years)

    It’s hilarious how idiots make conclusions on an entire industry based on 3 years of performance. Talk about the textbook short sighted low IQ renter profile. And before you citing what % of owners are underwater, note they took the options of cashing out massive equity and going on a spending spree. No gun to their head. 30% of homeowners have no mortgage, and are living at a fraction of market rent.

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  57. Bob 2 (Not Bob) on October 28th, 2011 at 2:54 pm

    God I hate renters, kill em all, they fuckin make me sick.

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  58. amy, I love you….

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  59. @ Amy, obviously you are a realtor and not a very smart one. People who bought in 2006 are seriously under water. Now a simple math equation says
    2011-2006=5 which is larger than 3…lol

    Also take a look at this one:
    http://www.seodisco.com/images/home-values.gif
    to get an idea about the RE history.

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  60. Clio, you should take Amy for a drink. I think you might have found your soulmate : )

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  61. miumiu – I agree!!!

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  62. Amy claims to work on Wall Street but we know that’s not really the case. In fact Amy isn’t even a _she_.

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  63. @ Clio, yay! If there is a wedding, I expect an invite : )

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  64. I’m from NY. As Sabrina noted in another thread, that partly explains my strong bias towards towards owning over the long haul. Chicago has dropped much worse than NY. So, there, it’s more like 7 years of the last 100 did not pay you a jackpot from being a buyer (93%) But, that’s the beautiful part about real estate. You walk. Heads, you win. Tails, they lose.

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  65. “I’m from NY. As Sabrina noted in another thread, that partly explains my strong bias towards towards owning over the long haul.”

    Chicago’s real estate market is nothing like NY’s. Our appreciation has never been the same. Our prices aren’t the same (thank god.) You can get a 3/2 pre-war here for $150k. Prices have risen just 1%to 3% for the last 100 years with some periods of stagnant prices (the 1980s) and then the last 4 years of declining prices.

    Real estate is not a “sure thing” in Chicago. As the person pointed out whose grandparents basically lost money on their Edgewater condo they’ve owned for nearly 40 years proves. MY own grandparents got a crappy return on a house they had in Olympia Fields. Ask the owners in Flossmoor who’ve owned for 20 years how it’s working out for them. Neighborhoods change. Conditions change. Heck, even those in LP haven’t done that great over the last 10 to 15 years.

    Let’s talk about CHICAGO’s real estate market- NOT NY’s. Two different animals.

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  66. “The people who bought in any of the last 100 years, except the last 3 (ie: 97% of years)”

    Real estate in Chicago has been only a so-so “investment” over the last 100 years. If you bought in 1929 you were toast. Prices dropped here by 50% to 80% (in some cases.) For some properties it took 70 years to “get back” to 1929 prices. We will likely see similar tales after this bust.

    BUT- if you bought in, say, 1940 and just paid it off you had an asset at the end of the day that went up slowly in value. No one here has advocated renting for forever. But you’d better be buying something you can live in for 10 to 20 years. Because the old game of buying a 2/2 condo and living in it for 3 to 4 years and then selling and moving on to the townhouse or SFH is now over. Buyers today should be opting to go directly to the larger space, if they can get it. If that means moving out of the city- then so be it. There are amazing deals in the suburbs right now and will be even more in the spring. Inventory IS low right now- from what I’m seeing.

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  67. @ Amy, NY is an entirely different market as Sabrina notes. For one space is seriously limited in NY, for two composition of the residents is different and their expectation of what is acceptable living space for a family.
    BTW, did you even look at the graph I posted? I cannot believe someone who claims they work on Wall Street cannot understand a simple graph like that.

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  68. “BTW, did you even look at the graph I posted?”

    I’m not sure you understand the graph you posted. You are missing the rest of that graph. The complete graph would show the bubble taking off at around 120, peaking at 200, and now being back down at around 130. Erasing almost the entire bubble. We are now basically at the top of the normal range, so I would expect 10-15% downside, and then a movement back up. Lather, rinse, repeat.

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  69. Perhaps this is a more accurate graph:

    http://www.ritholtz.com/blog/wp-content/uploads/2009/06/case-shiller-updated.png

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  70. so your graph chuck proves Amy’s point that 93 out of the past 100 years owning was hitting the jackpot?
    I am in fact for having part of ones assets in real estate, but I am not in the business of selling smoke.

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  71. “No one here has advocated renting for forever.”

    SHHHH. Her self worth appears to be dependent on that straw man.

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  72. “so I would expect 10-15% downside,”

    A missing factor in your rent v own calc?

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  73. “A missing factor in your rent v own calc?”

    Nope, not at all. Because I expect prices to come back up to today’s levels in 5-7 years. What it does during that time doesn’t matter. For the rent vs own calc.

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  74. “so your graph chuck proves Amy’s point that 93 out of the past 100 years owning was hitting the jackpot?”

    When did I say that? I just said that I didn’t think you understood your own graph.

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  75. Why don’t you tell me? What do you think your graph tells you about RE history?

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  76. “Nope, not at all. Because I expect prices to come back up to today’s levels in 5-7 years. What it does during that time doesn’t matter. For the rent vs own calc.”

    It would if you waited for your 10-15% downside, then bought.

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  77. “It would if you waited for your 10-15% downside, then bought”

    Except I am only talking about rent vs own TODAY. Not 3 years ago. Not 3 years from now. At some points in history it makes more sense to rent. At other points it makes more sense to buy. I would argue that TODAY it makes more sense to buy than rent for the next 5-7 years.

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  78. That 5-7 years of yours will also see rent declines at some point. Too many new projects and too much shadow inventory coming.

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  79. “I would argue that TODAY it makes more sense to buy than rent for the next 5-7 years.”

    But, in reality, the choice isn’t one or the other. It won’t take 5-7 years to find out, either.

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  80. I just bought a two bedroom condo, brand new construction regular sale in this area. I was renting for 900 a month prior to and now I am paying less than that! It was either that or buy a two bedroom with parking and water included,etc for at least 1200-1500. Moving is a pain every year. My rental was a 1921 with no renovations whatsoever and at one point our wall by the bathroom was leaking out water! But it was a great place to save money that’s for sure.

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  81. I used my graph to point out to Amy her argument is false.
    I still believe that if one can afford to buy and does not have immediate plans to leave, ownership is a good idea. But, I feel way too many people buy when they should not.

    Also pertaining to
    “I would argue that TODAY it makes more sense to buy than rent for the next 5-7 years.”
    These types of general statements are the ones I disagree with. There are people that should definitely not buy now. How can you make such a strong statement?

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  82. “But, in reality, the choice isn’t one or the other. It won’t take 5-7 years to find out, either.”

    Huh? I am talking about someone that does not have a place TODAY, and needs to either buy one, or rent one TODAY, and stay for 5-7 years.

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  83. “I used my graph to point out to Amy her argument is false.”

    Well, that’s not what your graph shows.

    “There are people that should definitely not buy now.”

    There are people that should never buy. I am talking about people that have the 20% down payment, have jobs, and need a place for at least the next 5-7 years.

    “How can you make such a strong statement?”

    Huh? What strong statement? I just said it was my opinion that it is better to buy than rent now if you have a 5-7+ year time frame.

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  84. I am not saying now is the BEST time to buy. Most likely, that will be at the mythical “bottom”. Maybe now the rent vs own calc on a certain place comes out in favor of owning by $200 per month, and in a year, it will be $300 per month. It doesn’t mean it’s wrong to buy now. It just means it’s not “the bottom”. Look back to 1990-1995. Do you think that today, those people that bought in 1991 or so are kicking themselves for not waiting until “the bottom”? And if you think inventory is bad now, just wait till you see what it is like at “the bottom”. So, sure, maybe the ideal combination is to rent for 1-2 more years, and then buy, but good luck with that timing…

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  85. “Well, that’s not what your graph shows.”

    I beg to differ.

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  86. gringozecarioca on October 29th, 2011 at 1:41 pm

    1- miu was just pointing out 2006-2011, so 93yrs is irrelevant.

    2- rent today for next 30yrs or buy and hold 30yrs…. Renter losses.

    3-clio is amy, and clio should marry her, so that he can actually go fuck himself.

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  87. lol Ze…you are too funny.

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  88. “3-clio is amy, and clio should marry her, so that he can actually go fuck himself.”

    Holy crap – that IS funny!!! (although I assure you, I am NOT amy – is it too unbelievable that there are TWO people out there with common sense and a deep understanding of real estate?).

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  89. “I beg to differ.”

    Then tell me what it shows.

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  90. “2- rent today for next 30yrs or buy and hold 30yrs…. Renter losses.”

    Oh really? Think of all the interest the owner paid over the years, and the maintenance, and the taxes. The renter pockets the difference. You’re still looking backwards at the ponzi scheme where real estate always goes up.

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  91. HD – please tell me one scenario where, after 30 years, it is better to rent…. there isn’t one, moron.

    remember, there are many financial advantages to renting. let me explain it to you like a little kid:

    2 places worth 250k each costing 2000/month (one is a rental, the other one is for sale). After 30 years, the seller OWNS the property which will be worth over 500k (even with dismal appreciation). The buyer now no longer has monthly payments for the house (except taxes and maint which will be much much much less than equivalent rent). The renter, on the other hand, will likely be paying 3-5k in rent (while the owner is paying 1k or less) AND the renter doesn’t have any equity built up and no nest egg.

    cmon, HD – you can’t be that stupid.

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  92. Detroit, Clio, Detroit…

    “clio on October 29th, 2011 at 9:43 pm

    HD – please tell me one scenario where, after 30 years, it is better to rent…. there isn’t one, moron.”

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  93. Clio – furthermore, there are so many errors and logical inconsistencies in your example, I don’t even know where to start to address them, so I won’t.

    Now if you excuse me, I have table of orcs, half-orcs and clerics waiting for their DM…

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  94. “Now if you excuse me, I have table of orcs, half-orcs and clerics waiting for their DM…”

    What does this even mean? Please speak English (adult English)

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  95. @ Chuck, it shows a few things:
    – There has been periods of boom in the market, but nothing as crazy as what we saw in the past decade
    – setting those spikes aside RE is pretty much flat (inflation adjusted of course) which was a surprise to me.

    so to me unless you know how to time the market, it is at best an ok investment nothing amazing. But, I feel the same about the stock market so for someone like me who has no great investment skills, I’d rather diversify and have a bit of both.
    BTW, I wonder how come so few people predicted a housing bust given the look of the graph?! In hind sight, it seems inevitable that there was going to be a bust.

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  96. HD – please tell me one scenario where, after 30 years, it is better to rent…. there isn’t one, moron.”

    The people who bought that condo in Edgewater in 1970s would have been MUCH better off renting over the course of that time period. They wouldn’t have paid taxes or assessments that entire time.

    Go to neighborhoods where housing has crashed and never come back. You might have been better off renting rather than owning in places like Lawndale and North Lawndale. You’d be surprised how many areas have gone from middle class to lower middle class since the 1970s.

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