Cheaper Than Renting? A 2/2 Under $300,000 in the South Loop: 1305 S. Michigan
This 2-bedroom unit at 1305 S. Michigan, in the Museum Park Lofts II, in the South Loop, is in short sale.
It’s only 1052 square feet, but it is a corner unit with a balcony.
With the parking included, it is listed for just under $300,000.
It has 10 foot ceilings, a fireplace and hardwood floors.
The kitchen has stainless steel appliances and granite counter tops. There is also a granite counter top in the master bathroom vanity.
With interest rates this low, is this unit now cheaper to buy than to rent?
Akos Straub at Jameson has the listing. See more pictures here.
Unit #1613: 2 bedrooms, 2 baths, 1052 square feet
- Sold in May 2006 for $377,500
- Originally listed in April 2009
- De-listed in March 2010
- Listed in April 2010 as a “short sale” for $264,900
- Currently still listed for $264,900 (parking $35,000 extra)
- Assessments of $461 a month (includes cable, doorman)
- Taxes of $5068
- Bedroom #1: 13×11
- Bedroom #2: 11×10
Non-corner units are asking 1750 to 1990 for rent plus 200 for parking
So, say its a $2000 ($2200 w/parking) month rental. 5% (5.3 w/ pkg) cap is too rich, even tho it may be cheaper *today* to buy than rent. What happens when mortgage rates go up? 7-cap gives a value of $225k, with parking, which would constitute I good deal, to me.
200K for this south loop 2/2 since the location is better than 1528 S. Wabash
but this place is small; and having the n/e view would be prime. rather that the seemingly e/s view
SLoop scares me as a buyer. just way to many bad variables in the mix with the over supply, short sales, rentals, special ass, buildings not over 75% sold.
I would like to here from someone who bought in the SLoop in the past 1-1 1/2 years what was their thought process when buying, their feelings now, and future view.
cause i personally cant get past all those shifting variables to part with my cash to hold that type of assets.
210K loan 3.5% down = 2300 PITA to me
“Groove77 on June 4th, 2010 at 10:26 am
…special ass…”
Mmmmmmmmmmmmmmmmmmmmmmm, special ass…
“210K loan 3.5% down = 2300 PITA to me”
202650 @ 4.75% = 1057.12. + 461 + 422.33 = 1940.45. Either that some really expensive insurance or you assumed a much worse rate than is readily available. PMI should be under $100.
It would be cheaper than renting if it was at 1305 North michigan instead of south
I used to live in the South Loop. I remember South Loop being Printers Row, etc…
Now there is a ton of stuff that really should never had been built.
“It would be cheaper than renting if it was at 1305 North michigan instead of south”
I think I can live at 1305 N Michigan for free. But it doesn’t come with parking and the commute is a little damp most of the year.
thank anon- but i did cushion the assessment/taxes as i think it will go up.
“i did cushion the assessment/taxes as i think it will go up.”
Taxes will go down a lot first after re-assessment or appeal. And rents will go up at some point (not soon, of course).
Over all a nice place…too bad it had to go into short sale status! At that price, if two adjoining units were to be available you would have one great place.
As far as renting, I recall when I first arrived in town, I toured three 2 bdrm apts… Amalia (next door to Target) for $2200., The Tides directly on the River on a high floor, Northwest facing, all utils included for $2450 with three months free and my fav, Sky 55 @ 13th and Michigan Avenue. It was the NW corner penthouse…BEAUTIFUL unit for $2550/mo. I really, really wanted that place but the weight limit for dogs was 40 lbs…my monster weighed in at 85 lbs and the rep would not budge on it.
So for rentals in this area (although this was 2+ years ago) there is plenty of competition, but all would be priced well above $2200.
**sorry to go off topic, but rentals came up and I had to ramble**
“So for rentals in this area (although this was 2+ years ago) there is plenty of competition, but all would be priced well above $2200.”
As noted, there are two in the building, east facing but not corner units, asking 1750 and 1990 each plus $200 for parking.
how much would you expect taxes to go down; cause there’s a bunch of foreclosure in my hood and the taxes seemed to say in the same ballpark.
Not sure what to make of the whole tax thing. Let’s face it…everyone is going to be able to make the case that their property values have gone down. Those that appeal will probably get a reduction but at some point the government has to come up with a higher tax rate so they collect the same revenue. Anyone who doesn’t appeal their taxes is going to get hosed.
Too bad this sale is in this “phony loft” building. The ductwork running exposed everywhere – yuck!
Gary’s comment is right on. After all, government budgets only get bigger. The uncertain future of Crook County property taxes is a huge reason why I’m not looking to buy in the near future. Rents never go up quite as fast as property taxes.
i live next door on indiana and 13th. the ductwork actually doesn’t look that bad, the air vents run through it so it gets some use, haha. the ceilings in my building are about as high as this one, and it gives the place a decent loft like feel, ( yes, i know, a phony one. )
2/2 ‘s in my building usually go for about 1800 or so, i rent a one bedroom for about 1500 with parking, utilities, and cable. this is a great neighborhood, and honestly, though it’s the south loop, it’s one of the nicest pockets of the south loop. michigan ave south of roosevelt all the way down to 18th street is very pretty and well maintained, with a few neighborhood bars, eateries, cleaners, and great proximity to the lake.
rentals are priced higher in the ‘apartment’ buildings, but the privately owned condos consistently rent for under 2k in this neck of the woods, all in all, for 250k with parking this is a steal.
Riz, you’re a good salesperson. . . I do agree with you: the best part of S Loop is like an elbow, from printer’s row to Michigan, south to about 16th at most.
. . . still, Groove, to your question: I can only speak as someone who sold in S Loop in the past couple years. . . we were criticized for asking too little, buyer felt they got a great deal. . . and, today, renovated 2/2’s are going for only about a 15% premium for what I sold my 1/1 for– same building. And I’m talking printer’s row, not motor row.
So I’m torn between overwhelmingly bearish feelings about what a thousand or so available units do to prices in a hood (with, really, no buyers). . . and that nagging feeling that you’ve gotta buy low to sell high. . . this place might be close to where that makes sense.
However, I could never live with the ridiculous finish that would be the top 27” or so of my appt in this building. Seriously, who the F thinks it’s OK to finish a place cheap traditional. . . except for the top 3 feet of the unit, which are finished in industrial concrete loft chic. Screw that.
I pay $2500 a month rent for a 1350 sq. ft condo at 100 E. 14th, also called 1400 Museum Park (which is stupid because IF it had a “south” real address it would be 13something S. Michigan).
That includes one parking space and I pay the light bill. I’m on a high 20s floor on the east side of the building with an unobstructed view of the Lake.
The owner paid cash and is looking for a long term renter which at this stage in life is aces with me.
That’s what I’m getting in the South Loop.
well, this is a good deal.
old man,
2500 will buy you a lot in this rental market…..i think that’s a bit high for 1350 sq feet in this neck of the woods, but to each their own, and it’s a beautiful building you live in, aside from the silly entourage ‘man’ store in the retail space.
personally i think the ‘true’ museum park neighborhood is on prairie and indiana, it’s tough to market south michigan as museum park – which is why your building chose a 14th street address and entrance and not a south michigan one.
squareD,
i think there’s a lot of good stuff south of 16th. krolls, the mexican cantina, and 2 convenience stores are right there. over on indiana it’s pretty nice up till about 18th as well.
And the convenience store on the west side of the street has Boar’s head.
“So I’m torn between overwhelmingly bearish feelings about what a thousand or so available units do to prices in a hood (with, really, no buyers). . . and that nagging feeling that you’ve gotta buy low to sell high. . . this place might be close to where that makes sense.”
Really? I think it’s a good deal at $225, vassel sez so-so deal at $210 (not that either of us is necessarily right, and I have my anti-apartment bias); do you really think this is close to working as an appreciation play at $299?
The negative commenters make as if South Loop has been annexed off. It is still in the city, and a desirable part of the city(Close to the Lake, downtown, Musuems. I bought here a year ago. Needed a bigger place, and South Loop had the most bang for the buck. The west Loop, Lincoln park or bucktown couldn’t get me what I wanted. I got a decent deal. The South Loop has been overbuilt, no arguing that. I am glad that a lot of the new construction is on halt… Some are bigger risk takers than others, it’s just the way it is. I bought into an existing buildings(4yrs old) and we do have our share of short sales. I needed a place to live and this place was affordable. The condition of one building, in terms of helthy reserves, building managment, should be taken on a case by case basis. Don’t go running off one buidlings condition(1717 Prairie, 1528 Wabash,etc). The nicer streets in my opinion are Michigan, Indiana, Prairie, and Calumet.
I second Andrew’s sentiment. The South Loop is a very viable, albeit overbuilt, place to live for plenty of people. It affords its residents little congestion, easy ingress/egress to city center, Grant Park, Millenium Park, the lakefront, all major expressways and a small but expanding variety of dining options. It is a very, very young area and will have better days ahead. Wise Chicago residents will remember that Lincoln Park, Old Town, Lakeview, Bucktown(what most narrow minded people consider to be great neighborhoods) etc weren’t born overnight. They all took years and years of gentrification to make them the neighborhoods they are today.
As the short sales/foreclosures get bought(and they will at the right price), renters occupy non-sellable units and the South Loop population continues to rise, it will contunue to become another quality lakefront or near lakefront option to reside. Not everyone who lives in Chicago needs countless bars, boutiques and baristas to validate the neighborhood.
For those of you in these forums that hint at any semblance of racial sterotypes, diversity issues and biases, do yourself a favor and move to Naperville…where life is vanilla and the population is soda cracker white.