When it pays to rent instead of to buy: 400 N. La Salle
400 N. La Salle was originally an apartment building in River North which was then converted into condos soon after it opened. It’s one of those buildings you may have walked or drove by a million times and not noticed it. Not that there is anything inherently wrong with it. But it looks like, yes, an apartment building.
The developer is still trying to sell units in the building several years later.
How are the original buyers faring? They should have rented rather than bought their one bedroom condos.
Unit #2112: 1 bedroom, 1 bath, 723 square feet, parking is extra but available
- Sold in November 2005 for $259,000
- Currently listed for $289,900
Unit #1501: 1 bedroom, 1 bath, 853 square feet, parking is extra but available
The pictures above are of Unit #1501.
- Sold in February 2006 for $296,000
- Currently listed for $329,900
You can see with both of these buyers, unless they get nearly their asking price, they will either break even or lose money after paying realtor and closing costs.
Most likely, they’re going to lose money on this deal.
Why do people keep insisting on buying one bedroom condominiums in downtown Chicago? How long do they think they’ll live there? The average time in a unit downtown is only 2 years.
In this market, you will lose money if you buy a condo and live in it for that little amount of time. There is not the appreciation of the past few years.
Why not just rent instead?
Koenig & Strey has the listing for #1501. @Properties has the listing for #2112.