Buying Real Estate in Chicago Can be the Best Decision You Ever Make
Finding good Chicago real estate for sale can be hard when you don’t have the resources. But when you do, it can be the most prudent decision you make in order to boost your investment portfolio. Why not consider the option and make a killing on the property? Purchasing real estate in Chicago could be one of the most lucrative investment decisions you could make because of the sheer appeal of the location and its popularity as a preferred tourist destination for American vacationers.
The measure of the true value of a piece of property is not the purchase price: it is the cumulative returns that it can provide the buyer over the course of several years. In addition, it is the satisfaction of having gotten a great deal on a fantastic piece of real estate. When it comes to real estate in Chicago, all these criteria are fulfilled – and more. Investors love Chicago as a destination for their money as much as tourists love it as a destination for their vacation. However, good Chicago real estate in prime locations often only come up once in a blue moon. If you have the good judgment to pounce on and acquire valuable property in this unique location, your purchase in real estate will have found solid footing.
The Benefits of Purchasing Property In Chicago
Irrespective of what you have read about the real estate industry’s contribution to the housing market collapse that happened a few years ago, there is little doubt that property is one of the most solid assets that a person can own. Land value is something that only goes up when you look at the long-term trends. Admittedly, there are short-term fluctuations that may make some people panicky, but these ups and downs are usually underlined by a strong upward trend. The trick is to look at the historic trend as well as future expectations when you purchase a property. Historically, real estate is one of the most stable forms of investment. Despite temporary setbacks in various economies recently, a property is still one of the best long-term opportunities for those who have the funds. Naturally, several other investment options exist, but real estate has always been the most value-inherent proposition for serious investors.
Types of Income from Property
There are essentially two basic types of income from real estate investments – rental and capital gains. Rental income is an ongoing source of returns and varies depending on the type of property and prevalent rental prices in that particular geography. Chicago is a popular destination for tourists from North America and is ideally situated for homeowners to take advantage of the seasonal demand for rental properties. The other type of income is capital gains, and this is more of a long-term benefit. As the market value of the property increases over time, the amount invested also grows in proportion. Depending on the exact location of the property, this increase can be quite significant, making your choice of purchasing a home here quite lucrative.
Investment expectations in real estate are generally linked to the capital value of the property, but another aspect is equally important – rental income. This creates a cash flow stream that can be reinvested, supporting your initial investment with steady returns. Rents can often be as high as $300 a night or more, so on a good month, a homeowner can expect nearly $10,000 – with very little in the way of overheads like maintenance and cleaning. Depending on the facilities available and the size of the property, that figure can go up considerably. Rental income here may still be subject to seasonal fluctuation, but it is far less volatile than owning a property in a location where rental demand is low.
The first reason to purchase here is the actual appreciating value of any land purchased in the Chicago area. Chicago has long been a final location for the resting place of many people’s life savings. Some like to buy a property for retirement, some as an investment for retirement income and yet others as something to bequeath to their children after they pass on. Some, however, invest in the short-term by buying and then selling within a few years for an immediate profit. The purchase climate in Chicago is ideal, and you will find many reliable real estate agents willing to provide the necessary logistic support for your purchase even if you reside in the United States or elsewhere.
The current interest rates on new home loans are sitting steady at about 4.1%. The housing bubble has evaporated but left a host of excellent opportunities for people with solid financial roots to purchase primary properties as well as investment properties. The over flooded market give buyers the upper hand on negotiating sweet deals on valuable land that happens to be located in an underperforming market. Chicago is not only an attractive choice for a new home but also presents a great opportunity for social and commercial growth.
Purchasing property can be both overwhelming and time-consuming. It requires enormous amounts of paperwork, preparation and the ability to keep your cool in potentially stressful situations. Most buyers looking to purchase property in Chicago are understandably happy to rely on professional estate agents. Here at Coldwell Banker’s, we are dedicated to offering you the best service possible to help you realize your dreams. Buying a property in Chicago has never been easier when you work with us. Rakesh Parikh is one of the premier agents in the area and you can rest assured that you are in good hands. Give us a call today to find out how we can be of service.