More free parking: Printers Corner at 170 W. Polk
More developers are getting into the “free parking” incentive game.
Printers Corner, a new mid-rise building at 170 W. Polk in the South Loop, is now offering free parking for those who “purchase and close by April 1, 2008.”
Parking was $36,000 before this “deal.”
There are a few units being flipped. At least three are available to rent.
Printers Corner’s theme was that all of its units were corner units.
Unit #808: 2 bedroom, 2 baths, 1145 square feet
- Sold in November 2007 for $345,000
- Available to rent for $2500 a month (indoor parking included)
- @Properties has the listing
Printers Corner [website]
Think they’ll take $225,000? Those units ook pretty nice.
As someone who is unfamiliar with the rental market in the South Loop, this seems quite expensive. Is $2500 really the market rate for a place like this?
Joe:
I am sure you would be able to get something for $200-300 less, only if location is not important to you. Out of most south loop condos, especially new construction, this one (and vetro, which is on the same block) are the closest to the loop, you can be there in 10-15 minutes, walking. So if you work in the loop, and do not want to take public transportation, this is a good deal.
If being close to the loop and living in a brand new condo is a not a priority for you, keep looking. If you go further south and further west you’d be able to get something for less.
Aleks, thank you very much for the help. Is there a general formula that investors use (some sort of purchase price to projected rental price ratio perhaps) in determining whether it would be advisable to purchase a property and rent it out? Any guidance would be greatly appreciated.
You came to the wrong place for an advice to buy 🙂 Most people here are against buying. I will tell you this however: If you are buying for yourself, and plan on staying at this place for 5+ years – find yourself a good deal and be happy. You will save overtime vs. renting. Heck, in 30 years you will pay off the mortgage (but highly unlikely that you’ll stay there for 30 years).
If you are planning on buying as an investment property, unless you put down a big down payment (by big i mean at least 20%) you won’t be able to break even. There are various formulas to determine the PRR. You do have to remember however, that prices are going to decline this year, and will be stay put for 2-3 more years. But this a cycle, just like any others (there was one in Chicago in late 80’s and early 90’s). Prices will come back up due to 1. inflation and 2. replacement cost.
Joe, there is no good deal today that won’t be a better deal next year. The same might apply next year as well. And the next year, too. Find a good deal on a place to rent and don’t consider for a second that you would be better off buying now no matter how long you plan to stay there. There are thousands of condo owners who would trade places with you in a second. They might not all admit it now, but they will soon enough.
Simple fact is that investors in Chicago haven’t been buying for several years. Speculators have priced out traditional investors that rely on actual returns from rents. This was never sustainable and prices will fall until investors see prices that can result in a profit from rents. Rents will fall as well, so the bottom is far from here.
There is no simple formula as every investment is different. However, traditional multipliers indicate that condo pricing at 100-125 times monthly rent is necessary to provide sufficient return for investors. Speculators might call themselves investors, but their success depends entirely with the ‘greater fool’ theory of investing.
This is certainly part of a “cycle”, but definitely not like any other Chicago has ever seen. Irresponsible lending/borrowing, low interest rates, over-building and irrational exuberance all will make this the cycle that is talked about for decades and decades to come.
Joe,
Buying a place has many factors to consider.
Time horizon: How long do you plan on living there? If it is only a couple of years forget about buying, even 5 to 7 years may not be long enough.
Why do you want to purchase a condo?, If you like the idea of owning, decorating as you wish, etc. then purchase only if you plan on being there for a long duration. If you motive is to make money, then do not buy!!! Invest your money in something other than a condo. Realestate is cyclical like the stock market, only the duration of bull vs bear market has a much longer time-line. We are just entering the down cycle, this market will not turn on a dime.
Asset Allocation: Are you a high net worth individual, where you are only allocation a small percentage to a purchase. If it is going to take all of your net worth to but a down payemnt on a place, I would not reccomend buying. Invest the assets you have, rent a cheaper place, invest additional funds in a 401k, IRA etc.
Arguments can be made both ways. 401K is not a good example simply because: you buy the stock (mutual fund, etc.) twice a month regardless of the price. It can be high, or it can be low. But you come on top because you keep what you have purchase for a long period of time. People have many different reasons for buying and renting. For some, it is too save money(even though this should be the biggest concern). For some it is the idea of ownership. Some simply do no want to move every 2-3 years in search for a better deal. But you should only worry about saving money if you look at your home as a liquid asset. If you are planning to live there for a long time, it should not be your concern. You should concentrate more on getting the most for you buck, i.e. getting the best unit and the best location. If people are comparing real estate to stocks, then maybe they should accept the fact that real estate FLUCTUATES, just like the stocks do.
It is also easy to compare high, (04-06), and low (07-08) prices. Do research and see what the places you are looking were selling for in 00-03, right before the peak.
Thank you very much for the advice. It is refreshing to view a website where the commenters are helpful and courteous. Is it correct to say that the consensus view is that the market will have bottomed out when prices start to reflect the 2000-03 prices? And since most sellers would not even consider offers in that range right now, it would (from an investment only standpoint) not make sense to buy right now? (My apologies for diverting the comments from the featured property to my own general inquiries. If there is a better forum for this, I could certainly take my comments there.)
Joe – I’m someone who would like to buy now, but won’t. There is too much uncertainty and if your $500K house goes down $50K+ this year and next that’s like the cost of housing plus $4K+ more per month in lost equity. Prices will go down. It is like the Christmas sales, you know the after Christmas sales are just a few days away, then next month the clearance sales. Wait for the clearance since we’re not even at Christmas yet. Until inventories get to 10 months or less and price hold for 4+ months don’t buy. If you miss the bottom and it goes up, you really won’t lose anything because prices will rise very gradually (unlike stocks) and if you buy before the uncertain bottom you could lose a lot. Wait for the certain bottom. Remember a 33% price decline requires a 50% price increase to reach the old price.
John,
I’m with you. I sold my house in the spring of 06, which turned out to be pretty impeccable, if unintentional, timing, and had thought I’d buy again after a year or so. The more I see, the less that seems like a good idea. I’ve said before that if the perfect place were to come around at a good price, I’d consider it, but it would have to be a REALLY good deal for me to move right now. My rent is probably a little higher than it should be for the place I’m living, but I’m still spending a LOT less than I would on mortgage, and I don’t have to worry if the value of my place falls. Seems like a good deal to me.
John, your “Christmas Sale” analogy is right on. In real estate it is called the “Spring Selling Season.” When it is a bust this year, and it will be, the “sales” will begin as the weak hands start to fold.
I am moving to Chicago and will be there for 3 years. From comments, it seems buying is not a good idea? Where is a good place to look for condo rent? I check apartmentpeople, but it seems the rents are higher than what people talk about here.
Ben:
For rentals, look on Craigslist. You can also go on the real estate sites and look at rentals in condominiums (go to Rubloff or Koenig & Strey etc.).
Rubloff.com
KSGMAC.com
You can search the rentals that are on the MLS that way.
And be sure to negotiate. Others have negotiated down quite a bit on the rent.
Thanks!