Month: July 2023

Is a Condo a Good First Home? Condo Living for First-Time Homeowners  

Posted on by LLCR Staff

If you’ve found yourself wondering if you should buy a condo before a house, you’ve come to the right place. For those looking for a sense of community, a low entry into homeownership from renting, investment potential, additional security and safety, access to high-end amenities that might otherwise not be available in a home, and an affordable option compared to single-family homes with a smaller down payment, a condo may make a terrific first home. 

But before you move forward with your decision, we have a wealth of information for first-time buyers. We’ll answer the burning question, “Is a condo a good first home?” and provide more helpful insights.

First, let’s take a look at the unique benefits of buying a condo.

Is a Condo a Good First Home? Explore 6 Top Benefits

1. Affordable Option with Smaller Down Payment

One of the most significant advantages of purchasing a condo as a first home is the relatively lower cost compared to single-family homes. Condos tend to be more affordable, making them accessible to buyers who may not have a substantial down payment saved up. The reduced financial burden at the outset can be particularly beneficial for young professionals or couples looking to invest in their first property.

2. Low Entry from Renting to Homeownership

Many first-time buyers transition from renting to homeownership. Condos present an ideal stepping stone in this journey. Owning a condo provides a sense of ownership and builds equity, yet it typically involves less maintenance and upkeep than owning a single-family home. This allows new homeowners to ease into the responsibilities of homeownership gradually.

3. Access to High-End Amenities

Condo living often comes with access to a range of luxurious amenities that might be financially challenging for first-time buyers to afford in a single-family home. These amenities could include swimming pools, fitness centers, rooftop gardens, communal spaces, and more. Enjoying such facilities within the condo complex can enhance the overall living experience.

4. Additional Security and Safety

Condos usually have secure entry points, such as gated entrances or controlled access to buildings. The presence of nearby neighbors can offer an added sense of security, especially for those living alone or concerned about safety. Many condos also have security systems and on-site personnel to monitor the premises.

5. Sense of Community

For first-time homeowners who value community, condos can be an excellent choice. Living in close proximity to neighbors allows for easier social interactions, fostering a more tight-knit environment. Community events and gatherings organized by the condo association can further enhance this sense of belonging.

6. Investment Potential

Condos can be a smart investment for first-time buyers. As Chicago continues to grow, demand for housing close to city centers is on the rise. The potential for appreciation in condo values over time can make them a valuable asset in the long run. Additionally, some condo owners choose to rent out their units, providing an opportunity for a passive income stream.

Now that we’ve covered the advantages condos offer let’s walk through the important steps to consider and questions to ask when finding, purchasing, and owning this property type.

Questions to Ask When Buying a Condo

1. What Neighborhood Should I Live In?

When buying a condo, the first step is identifying the right neighborhood that aligns with your lifestyle and preferences. Consider factors such as proximity to your workplace, public transportation options, and local amenities like schools, parks, shopping centers, and entertainment venues.

Research the neighborhood’s safety, growth potential, and community atmosphere to ensure it fits your long-term goals. Licensed brokers can also provide you with the scoop on the various areas throughout Chicago and their unique advantages and charms.

2. What is My Budget?

Establishing a clear budget is crucial before starting your condo search. Condos can vary significantly in price based on location, amenities, and size.

Determine your maximum budget, including a buffer for unexpected expenses, and get pre-approved for a mortgage to understand your financing options. Be realistic about what you can afford to avoid future financial strain.

3. What Taxes and Fees Can I Expect?

When buying a condo, you need to be aware of various taxes and fees associated with the purchase. These may include property taxes, downpayment, transfer taxes, title insurance, and escrow fees. Consult with a real estate professional to get a clear understanding of all the financial implications involved in the transaction.

4. What Condo Amenities Should I Look For?

With so many luxury condo amenities on the market today, prioritizing will be crucial. Assess which amenities are essential to you and ensure that the condo you’re interested in offers the facilities you desire.

If you have a pet, consider a building with pooch-friendly amenities like dog parks and grooming stations. Or, if you’re a fitness enthusiast, find an option with state-of-the-art equipment.

Other Factors to Consider When Buying a Condo in Chicago

Understand Condo Homeowners’ Associations (HOAs)

Most condos are part of a Homeowners’ Association (HOA), which manages the shared common areas and enforces rules and regulations for the community. Before purchasing a condo, carefully review the HOA’s rules and bylaws, as they can dictate everything from pet policies to exterior modifications. Additionally, inquire about the HOA fees and what they cover to ensure they align with your budget.

Assess the Building’s Maintenance and Financial Health

A thorough inspection of the condo building must be conducted before signing anything. This way, you can assess its overall maintenance and structural integrity. Look for signs of wear and tear, as well as any potential issues that may arise in the future. Additionally, review the condo association’s financial statements to ensure the building is well-managed and financially stable.

Budget for Regular Expenses

Don’t forget to consider common costs as you plan for condo living in the Windy City. Transportation costs may include public transit fees and occasional ride-sharing expenses. Food expenses will depend on your dining habits and the type of groceries you purchase. Additionally, healthcare costs, utilities, and entertainment expenses, such as dining out or attending events, should be factored into your budget.

Decorate Your New Condo

Decorating your new space is an exciting opportunity to infuse your personality and style into every corner. Start by considering your preferred color scheme and furniture layout to create a cohesive and inviting ambiance. Utilize space-saving solutions such as multi-functional furniture and wall-mounted shelves to optimize your living area. Add personal touches with artwork, decorative accents, and indoor plants to make it feel like home. Remember, the key to successful condo decor is finding the right balance between functionality and aesthetics. 

Work with a Real Estate Broker

Navigating the condo-buying process can be complex, especially for first-time buyers. Enlist the services of a reputable real estate broker with experience in condo transactions. We have a skilled team of brokers who can guide you through the process, negotiate on your behalf, and help you find the condo that meets your requirements and fits your budget.

Now that you’re armed with more knowledge about condos, we hope you feel confident that a condo is a good first home. Especially if you are looking for extra convenience, community, safety, and more, chances are you should buy a condo before a house. As you navigate this process, you don’t have to do it alone! Let our experienced team walk you through every step of the way.

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The Difference Between Buying a Condo vs. House vs. Townhouse

Posted on by LLCR Staff

Are you contemplating the perfect place to call home in the Windy City? If you find yourself entangled in the condo vs. house vs. townhouse debate, don’t stress! We can help you decipher each housing option’s unique features and advantages to find what works best for you and your lifestyle.

The Difference Between Buying a Condo vs. House vs. Townhouse

1. Level of Maintenance

If you are in a season where you’re looking for minimal upkeep, consider a condo. Condos generally require the least maintenance, as the homeowners’ association typically manages exterior care and shared spaces. Homes demand more individual responsibility for maintenance, from landscaping to repairs. If you’re a “do-it-yourself” person, who enjoys home improvement projects, this may be the right direction for you. If you fall in the middle, a townhome may be the move. This property type, with shared walls and possible HOA assistance for exterior upkeep, offers moderate maintenance.

2. Shared Amenities

Access to amenities may be a high priority if you’re seeking ultimate convenience and activities at your fingertips. Condos typically boast the most extensive shared facilities, such as gyms, pools, rooftop terraces, and more, providing residents with a luxurious lifestyle. Though offering more privacy, single-family homes might lack communal amenities, relying solely on nearby public facilities like parks. Townhomes generally strike a balance, offering shared spaces like parks or clubhouses, fostering a sense of community while maintaining a degree of personal space.

3. Affordability

Cost is a critical factor when selecting the property that makes the most sense for you. Condos are often the most affordable option, making them ideal for first-time buyers or those seeking a city-centric lifestyle. Houses typically have higher price tags due to the land and additional space they offer. Townhouses occupy a moderate price range, making them attractive to buyers looking for a mix of affordability and space. Along with the initial price tag, keep in mind that properties come with additional costs to consider, like taxes and fees. A licensed real estate professional can further walk you through these financial burdens as you property hunt to ensure your ultimate choice aligns with your budget.

4. Security

You can’t put a price tag on safety. Therefore, for many, this may be an important consideration. Note that condos are lauded for their heightened security, often featuring extra security measures, like gated entryways or 24/7 surveillance. Houses may offer more privacy but don’t typically come with security features, although you can set up a security system. Townhouses, with their shared walls and community setting, may offer a sense of security without sacrificing privacy. However, townhome owners are also responsible for setting up a security system if they want more peace of mind.

5. Level of Control over Property Decisions

While some prospective buyers value decision-making, others don’t want the added stress. Houses provide the highest degree of autonomy, allowing homeowners to make decisions freely without needing approval from others. Condos typically come with homeowners’ associations (HOAs), which may impose restrictions on property modifications and require HOA approval for certain decisions. Townhomes often fall in between, offering a balance of individual freedom and shared decision-making within the community.

6. Proximity to Neighbors and Privacy

Do you prefer increased social interaction or more personal space? Condos share walls and floors with neighbors, offering a more communal living experience. Houses provide greater distance from neighbors and increased privacy. Townhomes offer a blend of both worlds. Units provide more privacy, with either detached units or only side walls shared, while providing proximity to other residents.

7. Resale Opportunities and Limitations

Buying a property is an investment, so weighing the ROI is important. Homes generally offer greater potential for appreciation due to their standalone nature and the possibility of land ownership. However, their higher maintenance costs and limited amenities might deter some buyers. With their shared amenities and lower maintenance burden, condos attract a diverse market, boosting their resale value. Yet, little control over building policies and potential association fees may influence certain buyers. Townhomes offer more control over the property while still providing shared amenities, making them an appealing option for resale. Understanding these nuances, and walking alongside a broker, can help you make a well-informed choice tailored to your future financial goals.

8. Outdoor Access

If outdoor space is important, you will find many more options searching for houses. This option will guarantee more room for gardens, lawns, and backyard entertainment. While some condos offer balconies, this route is certainly the most limited when it comes to outside square feet. Townhouses may offer small yards or patio spaces.

9. Level of Community and Closeness

Due to the proximity of units, condos, and townhouses often provide a close-knit community atmosphere. Houses, though offering more privacy, might have limited interaction with neighbors. It also depends on the neighborhood and its culture.

10. Amount of Space

Houses typically offer the most square footage, ideal for growing families or those seeking abundant living space. Condos and townhouses provide more compact living spaces, making them suitable for individuals or smaller households.

11. Rules and Restrictions

Condos may have the most stringent rules and restrictions to maintain a harmonious living environment. Houses usually have fewer rules, giving homeowners more freedom. Townhouses fall somewhere in between, balancing community guidelines and individual liberties.

The decision between a condo vs. house vs. townhouse boils down to individual preferences, lifestyle, and financial considerations. A condo offers convenience and shared amenities, a house provides privacy and personalization, while a townhouse combines elements of both worlds. Consider your priorities carefully, and you’ll find the perfect abode to call home in the beautiful city of Chicago.

If you would like support in your decision-making and house hunting, connect with our licensed team today or follow the link below!

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Breaking Down the Costs of Owning a Condo: A Guide for First-Time Owners

Posted on by LLCR Staff

Owning a condo offers numerous advantages, from the convenience of shared amenities to a vibrant community lifestyle. However, it’s crucial to have a comprehensive understanding of the costs associated with condo ownership.

In this guide, we’ll break down the various expenses you need to consider to budget wisely and ensure a smooth condo ownership experience.

Costs of Owning a Condo

1. Monthly Condo Fees and HOA Fees

One of the primary costs of owning a condo is the monthly condo fee, also known as the Homeowners Association (HOA) fee. These fees cover the maintenance and upkeep of common areas, landscaping, security, and building insurance.

Monthly condo fees can vary significantly depending on the condo complex and its amenities. On average, condo fees in Chicago can range from $200 to $600 per month. For example, a condo in a high-rise building with extensive amenities like a fitness center, pool, and 24-hour concierge service may have higher fees, while a smaller building with fewer amenities may have lower fees.

2. Parking and Storage Unit Fees

If your condo includes designated parking or a storage unit, you may be required to pay additional fees.

Parking fees can vary based on the location and whether it’s indoor or outdoor parking. In downtown Chicago, monthly parking fees can range from $100 to $300 or more. Storage unit fees may cost an additional $50 to $150 per month, depending on the size of the storage space.

3. Repair and Maintenance Fees

As a condo owner, you are responsible for maintaining your unit. While the condo association takes care of common areas, you’ll need to budget for repairs and maintenance within your condo, such as fixing appliances, plumbing, or any interior upgrades.

Repair and maintenance costs will vary depending on the condition of the condo and any necessary upgrades. On average, condo owners should budget around 1% of the condo’s value annually for maintenance and repairs. For example, if your condo is valued at $300,000, you should budget around $3,000 per year for maintenance and repairs.

4. Special Assessment Fees

In some cases, condo associations may impose special assessment fees to cover unexpected expenses or major repairs not covered by the regular condo fees. It’s essential to be prepared for these additional costs that can arise on short notice.

Special assessment fees are usually one-time expenses for unexpected repairs or improvements to the condo building. These costs can vary widely depending on the nature of the assessment. For instance, a special assessment for a roof replacement may cost each unit owner $1,000 to $5,000 or more, depending on the size of the building and the scope of the project.

5. Utilities

Condo fees usually include some utilities, such as water, sewage, and garbage collection. However, other utilities like electricity, gas, internet, and TV are typically the responsibility of the condo owner.

Monthly utility costs will depend on your usage and the rates in your area. On average, Chicago residents can expect to pay around $100 to $150 per month for electricity, $50 to $100 for gas, and $50 to $100 for internet and TV services.

6. Insurance and Taxes

As a condo owner, you’ll need to have insurance to protect your personal belongings and liability. Additionally, property taxes are another cost you should factor into your budget.

The cost of condo insurance can vary based on the coverage and location. On average, condo insurance in Chicago can range from $300 to $600 per year. Property taxes will depend on the value of your condo and the local tax rates. For a condo valued at $300,000, property taxes may amount to approximately $4,000 to $6,000 per year.

7. Mortgage Payments

If you financed your condo purchase with a mortgage, make sure to budget for the monthly mortgage payments.

Mortgage payments will vary based on the loan amount, interest rate, and loan term. For instance, with a 20% down payment and a 30-year fixed-rate mortgage at 4%, the monthly mortgage payment on a $300,000 condo would be around $1,145.

8. Lifestyle Expenses

Owning a condo may come with lifestyle upgrades or higher living costs, such as dining out more frequently, exploring nearby entertainment options, or engaging in community events.

Lifestyle expenses will depend on individual preferences and choices. On average, dining out and entertainment expenses can range from $300 to $500 per month per person.

Being aware of the costs associated with condo ownership is essential for first-time owners to make informed financial decisions. From monthly condo fees and parking fees to utilities and insurance, understanding the full range of expenses will help you create a realistic budget and enjoy the benefits of condo living with confidence.

If you’re ready to begin your journey to buying a condo in Chicago, Luxury Living is here to help! Our team of real estate professionals have years of experience helping new buyers navigate the costs involved in homeownership, the ins and outs of the Chicago homebuying process, and more. Contact us to begin your search today!

Searching for more information on additional living expenses in Chicago to consider? Follow the link below.

Chicago Living Expenses You'll Need to Consider

What Should I Ask Before Buying a Condo? Your Essential Condo Buying Checklist

Posted on by LLCR Staff

Buying a condo in Chicago can be an exciting venture, especially for first-time buyers. However, with the vast array of options available, it’s crucial to approach the condo purchasing process with due diligence.

To help you make an informed decision, we’ve compiled a comprehensive condo buying checklist with key questions to ask before taking the plunge. From understanding insurance and budgeting to inspecting the condo yourself and exploring community details, this guide will equip you with the knowledge needed to confidently navigate the condo buying journey.

Questions to Ask When Buying a Condo in Chicago

  1. Insurance Questions:
  • What does the condo association’s insurance cover, and what should I secure with my personal insurance policy?
  • Is there a history of past insurance claims for the building or the individual units?
  • Are there any insurance coverage gaps that I should be aware of as a condo owner?
  1. Budgeting and Expenses:
  • What are the monthly condo association fees, and what do they cover?
  • Are there any special assessments or planned future increases in fees?
  • How are the condo association’s financial reserves, and are they sufficient to cover unexpected expenses?
  • What additional expenses, such as utilities or property taxes, should I budget for as a condo owner?
  1. Repairs and Improvements:
  • Are there any ongoing or planned repairs or renovations for the condo building?
  • What is the process for requesting and approving renovations within my individual unit?
  • Are there any restrictions on making changes to the unit’s layout or appearance?
  1. Included Amenities:
  • What amenities are offered to condo residents, such as gyms, pools, or communal spaces?
  • Are there any additional fees associated with using these amenities?
  • How are the amenities maintained and funded within the condo association?
  1. Rental Policies:
  • Are there any restrictions on renting out the condo unit?
  • What are the rules and regulations regarding short-term rentals, if applicable?
  • Are there any rental caps within the condo building?
  1. Condo Community Details:
  • What is the overall vibe and atmosphere of the condo community?
  • Are there any community events or gatherings organized by the condo association?
  • How is communication between residents and the condo association managed?

As you embark on the journey of buying a condo, it’s essential to gather all the necessary information and ask the right questions before making a decision. Armed with this valuable knowledge, you can approach the condo purchasing process with confidence, ensuring that your investment aligns with your lifestyle and financial goals. By following this comprehensive checklist, you’ll be well-prepared to make a successful condo purchase that meets your needs and enhances your living experience.

Ready to start your Chicago homebuying journey? Our experienced team of professionals are here to help answer any questions and offer guidance to help you make the best decision. Connect with us today or follow the link below to start your search!

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Essential Tips for First-Time Condo Owners: Navigating the Path to Successful Condo Living

Posted on by LLCR Staff

Condo living offers a unique and rewarding experience, but it also comes with its own set of responsibilities and considerations. To help you make the most of your new condo ownership journey, we’ve compiled a list of essential tips and tricks. From understanding condo rules and regulations to staying on top of renovations and being an active member of the community, these guidelines will ensure a smooth transition into your new condo lifestyle.

8 Condo Living Tips for First Time Owners

  1. Familiarize Yourself with the Condo Rules and Regulations: One of the first things you should do as a new condo owner is thoroughly review the condo’s rules and regulations. Understand what is expected of you as a resident and adhere to these guidelines to maintain a harmonious living environment. This includes understanding noise restrictions, pet policies, parking rules, and any restrictions on renovations or alterations to your unit.
  2. Review Condo Documents: Take the time to carefully review all the important condo documents, such as the declaration, bylaws, and association policies. These documents outline the rights and responsibilities of both the unit owners and the condo association. Being familiar with these documents will help you make informed decisions, understand financial obligations, and ensure a clear understanding of the condo’s governance structure.
  3. Budget Wisely: Creating a budget is crucial for successful condo ownership. Understand all the associated costs, including mortgage payments, property taxes, monthly HOA fees, and utilities. Be diligent about setting aside funds for regular maintenance and unexpected repairs. Budgeting wisely will help you manage your finances effectively and avoid any financial strain.
  4. Stay Proactive about Repairs and Maintenance: As a condo owner, it’s important to address maintenance and repair issues promptly. Report any maintenance concerns to the condo association or property management to ensure the longevity and value of your property. Regularly inspect your unit for any potential issues and stay proactive in resolving them. Taking care of small repairs promptly can prevent them from becoming larger and costlier problems down the line.
  5. Stay on Top of Insurance and Find the Right Coverage: Protect your investment by obtaining the appropriate insurance coverage. While the condo association’s insurance typically covers common areas and the building structure, it’s crucial to have personal insurance to protect your belongings and liability. Consult with an insurance professional to understand the coverage options and ensure you have the right policy for your needs.
  6. Participate in HOA Meetings to Stay Informed: Attending HOA (Homeowners Association) meetings is an excellent way to stay informed about important decisions, community updates, and upcoming projects. It allows you to voice your concerns, contribute to discussions, and understand the financial health of the association. Active participation in these meetings helps build a sense of community and fosters a positive living environment.
  7. Join and Be Part of the Condo Community: Embrace the condo community and get involved in community activities and events. Participating in social gatherings, committees, or volunteering opportunities not only helps you forge connections with your neighbors but also enhances your overall condo living experience. Building a strong community contributes to a welcoming and enjoyable environment for everyone.
  8. Take Advantage of Amenities and Respect Shared Areas: Many condos offer amenities such as gyms, pools, or shared outdoor spaces. Make the most of these facilities and enjoy the convenience they offer. However, it’s essential to be considerate of your fellow residents and follow any posted rules or guidelines. Respect shared areas by keeping them clean, properly using equipment, and adhering to designated hours or restrictions.

Becoming a first-time condo owner is an exciting milestone, and these essential tips will help you navigate the journey successfully. By understanding condo rules, staying proactive about maintenance, and more, you’ll create a harmonious living environment for yourself and your fellow condo residents.

If you’re ready to make the first step into homeownership in Chicago, let our team of experienced professionals help! We are here to guide you through the homebuying journey and answer any questions you may have. Contact us today or follow the link below to start your search!

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