Are you thinking about real estate investing in Chicago? It might sound mad to invest in property right now at times of such uncertainty. However, it can be lucrative. If you have money available, then real estate investing can be much wiser than leaving your cash in a bank. Unfortunately, like many other major cities, job vacancies in Chicago are rising, while rents are falling. At the same time, the number of vacancies increased by only 0.8% over the same period last year, and rents fell by only 2.9%, which means Chicago is in better shape than the rest of the country.
With a large number of tenants waiting for completion, leasing investment in Chicago this year may be a wise move for real estate investors.
Here’s everything you need to know.
Consider Your Investment Portfolio
Investors can make big money in Chicago with a portfolio of investment properties and renting them out to a large number of tenants. The only downside for anyone considering investing in real estate in Chicago is the price.
The cheapest neighborhood in Chicago is the West Ridge, where the average listing price is $199,900. Average house prices in Chicago have risen more than 14% in nine counties. Of the 78 neighborhoods in Chicago, Lincoln Park is the most expensive home to buy, with an average listing price of $650,000.
Rent Prices
In terms of rent, Chicago is the ninth most expensive city in the United States, and the average rent for a one-bedroom property is $1995 per month. As of 2019, Chicago has a population of nearly 2.7 million, making it the most populated city in Illinois. Chicago also has higher education institutions such as the University of Illinois at Chicago and Northwestern University.
If you don’t want to speculate, understand that this family-run area still requires high rents, so you will receive a significant return on your real estate investment.
Avondale is definitely an area to watch out for if you are looking for mid- to high-end real estate investments, especially if you plan to rent out. A wide range of opportunities awaits homebuyers in the Chicago market, but it may be better to find and manage a niche.
However, not all neighborhoods in Chicago are desirable for residents, and many are poor choices for real estate investing. Real estate investors looking for an affordable location have an easy option in Chicago.
What Does the City Have to Offer?
Look for an investment property in a city close to transportation, trains, buses, food, shopping, and entertainment, but far enough away to be quiet. Make sure your neighbors keep their property and help maintain values.
Find a broker, get a list of all active, conditional, and closed/sold properties in your area within 6-8 blocks.
Consult an investment advisor who can help you create a tailored portfolio of turnkey investment properties in some of Chicago’s greatest neighborhoods. Once your goals are clear, in-depth market research can help you understand the complexity of Chicago commercial real estate and investment methods.
Investors considering buying rental property in Chicago can also study home affordability to predict current and future demand for rental properties. Statistics like these help make the Chicago rental market attractive to local and remote real estate investors. The rise in house prices in Chicago is probably one of the reasons why more and more people in the Chicago area are choosing to rent rather than buy.
Rental Prices in Chicago
First, rental prices in Chicago have been steadily rising over the past 10 years (and there is reason to believe this trend will grow). Secondly, Chicago is a city of tenants: more than 54% of the local population rents their homes. Third, it is relatively cheaper to own a property in Chicago than to rent it.
You will get high rental rates for your investment in Chicago real estate near ten beaches in the area, especially in the summer.
Additionally, Rogers Park has up to ten beaches next to the lake, meaning you can potentially invest in affordable lakeside property to truly maximize your rental or resale value. Speaking of Humboldt Park, this is still an area to look out for if you are looking to invest in low- to mid-range property.
If you are interested in buying in Chicago, check out these homes for sale.
Consider Bungalows
If you’re looking for a good area to invest in real estate in Chicago, know that bungalows here are highly desirable for millennials. The area is in such demand that the price of a square foot of homes in Avondale is about $280 per square foot, which is $40 more than the average for Chicago real estate investments.
Work in partnership with building owners, owners, and managers and find the best possible return on every investment. Smart partner agents work at a fixed rate and can assist you throughout the entire investment process, from buying and renovating to renting or reselling your property.
Remember that whatever property you purchase, you still need to factor in taxes like capital gains tax and whether it’s still a worthy investment.
Real Estate Investing Chicago Can Be Lucrative
Whether you are looking for a new investment opportunity or a new business space, entering the competitive and challenging commercial real estate investing Chicago can be daunting.
However, if you do your homework and make sure you understand your own situation, you could make a lot of money.
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Also read: 6 Tips For Selecting The Perfect Real Estate Specialist
