As a Logan Square resident and Chicago Real Estate Broker, I am constantly reading various media sources about our local housing market.  It bothers me that the national news reflects so much on our local situation when in fact it doesn’t at all.  People often see the pricing declines in California and think it applies locally.  Further people often read general local studies on pricing and apply it to themselves. 

Chicago has hundreds of separate real estate markets depending neighborhood, location within the neighborhood, property type, size, finish level plus much more.  The point is to get specific pricing information about your property and do not rely on general data studies that look broadly at these markets.

An example of a broad study follows:  http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=31845.
  

As a Chicago real estate broker, I am often asked whether home improvements make financial sense.  Generally home improvements do not provide a short term return on investment.  However, money doesn’t necessarily have to be the only goal in mind when thinking about home improvements.  I think it is also important to think about whether the improvement will bring a positive lifestyle change such as improving your kitchen so you can spend more time entertaining.  Or perhaps adding a second bathroom in the basement will help you compete in the market place at some future time when you decide to list. 

If you are thinking about home improvements, do your research and take your time thinking through this decision. 

Part of my job as a Chicago real estate broker is to keep you informed and provide pertinent information.  So on this subject you may want to check out the following Sun-Times articles as part of your research:

http://searchchicago.suntimes.com/homes/news/1278327,remodelchart14.article

http://searchchicago.suntimes.com/homes/1278211,HOF-News-cover14.article

Bad economic news is abound and everywhere and it doesn’t seem to be slowing down anytime soon.  We need this news to stop or at least be mixed with good news for the Chicago real estate market to continue breathing. 

I remember last August when the first tidal wave of bad news hit.  Immediately the phone stopped ringing for our listings and buyers all the sudden were not interested in doing showings.  I feel like right now is much like last August except worse because the news is much more catastrophic.  Couple this news with the upcoming typically slower real estate season of Fall and Winter and you have the best buying season of the last fifteen years in Chicago. 

For those of you who think you are going time the "bottom" of the market by holding off for awhile, think again.  The bad news will soon be over and the spring buying season will be here before you know it.  Now is the time.

The Arthouse Lofts at 14 N. Sangamon located Chicago’s West Loop is one of the smallest timber loft condo buildings in City.  This intimate 26 unit building was converted in 1999 and offers a roof top deck and garage parking.

Being small and well located, units in this building don’t last long on the market.  Many units offer private balconies, city views and a very high level of finish.  Fourteen foot ceilings, fireplaces and storage in the building are the norm.

Arthouse offers both 1 bed 1 bath and 2 bed 2 bath units starting at $250K up to $350K depending on size, location within building.

Logan Square’s St. George Lofts located at 2161 N. California offers one of the best condominium buildings in this Chicago neighborhood.  This is a well managed, well located 27 unit building in a rapidly rising part of the city.

Located right next to the California Blue Line stop, this building features timber lofts with 12 foot ceilings and assigned garage heated parking.  Many of these units come with city views and steel balconies.  The units themselves consist of both 1 bedroom 1 bath and 2 bedrooms 2 baths up to 1,200 square feet.

Just within a short walking distance you will find many bars and restaurants including:  The Logan Bar, Ronnie’s, Tacqueria Moran, Panchos and No Friction Cafe. 

Available units in this building don’t last very long after having been listed.  Currently there is one listed unit and it is under contract. 

Having owned in Chicago’s Logan Square neighborhood for five years, I have patiently waited for the tide that makes the boats rise.  The good news is that the tide is just beginning to arrive.  We now have many restaurants entering the neighborhood not to mention a change in image from murderous to trendy and hip.

My prediction (and many others) is that you will see more bars and restaurants enter the neighborhood around and between the California and Logan Blue Lines stops.  In fact The Logan Bar (2350 N. California) just recently opened while the Sultan’s Market (2202 N. California), Revolution Brewery (2323 N. Milwaukee) and Real Tenochtitilan (2451 N. Milwaukee) are at various stages of becoming new places. 

Logan Square is one of the last great Chicago neighborhoods to still be affordable.  The incoming tide suggests this will soon change.

I personally know a large number of Chicago real estate investors who got started with a three flat as their first investment.  Three flats tend to be very safe initial investments as they are easy to rent and tend to have smaller operating costs.  However with that being said, it is very difficult for many to get started this way due to the sizable down payment required.

What if I told you there is an easier way to get started in real estate investing?  The idea is simple; buy a condo with two or more bedrooms.  You can live in one bedroom and rent out the others.  Think about it; you will apply this rental income towards your taxes and mortgage plus save a portion.

Say you collect and save on average $600 per month over a three year period from your renters.  At the end of three years you will have accumulated $21,600 from your renters.  This amount equates to a 5% down payment on a $432,000 Chicago three flat.  You now can control a nice brick three flat using 100% Other People’s Money (OPM).  You will have your 5% down payment from the renters and 95% from the bank loan. 

I know this strategy is not for everyone, but I think it will work great for many.   Either way, take control of your future by owning real estate.

Many smart people have told me through the years that contrarians make money by buying in bad markets.  As it stands right now, those that are currently purchasing real estate are definitely in this class.  I think a lot  of smart people are buying right now; however, I don’t feel that many of these people are first time buyers.

Chicago first time home buyers please note that you should not be scared of this real estate market.  Why do I say this?  Prices have dropped overall, but many local experts feel the bottom is here so lock in a great price by buying now.  Chicago landlords are raising rents $100 to $300 per unit per month making renting much more expensive.  Further the U.S. government is offering first time buyers a $7,500 credit towards your next Federal tax bill.  This benefit won’t be extended forever.

The bottom line is to challenge yourself to consider buying now by being a contrarian.  Buying when everybody else is buying tends to be a losing proposition. 

Roosevelt Square is also part of University Village and is basically condo’s. This mix used development rest on what used to be a big portion of the CHA ABLA homes housing project. This area is also part of Taylor street which is also home to some of Chicago’s best Italian restaurants. I would highly recommend Rosals at Taylor and Racine it has the best Tiramisu around!  One observation about Roosevelt square as they have just finished up Phase 1 and beginning the next phase is so far the condos and multi unit buildings are rather bland in architecture and design. I hope the next  phase has more character. The next phase also plans to have more commercial space.

University Commons which rest on 14th pl. and 15th st between Morgan and Racine is an historically landmarked building that has a lot of character  reflective of its original structure….The South Water Street produce Market. This complex is comprised of 6 separate buildings but with all  the same in design. The complex was re-built by the Enterprise Companies and they painstakingly refinished the beautiful facade. These buildings used to be what was know as the "South Water Street Market" where all the produce would come in to individually stalled row warehouses by horse and buggy. Eventually by the 1990’s many business’ left these buildings to move their warehouses to larger facilities near I-55 and Ashland. This happened mainly because the buildings became dilapidated and it simply was too difficult and congested for the 18 wheeled  trucks to maneuver while trying to offload their goods. These buildings were gutted to the cement structure and rebuilt one building at a time over the last 5 years.

Today, University Commons is nearly all sold and a very thriving, well landscaped complex. Each building has a workout facility, party room and all owners have access to the 30 seat movie theater and in ground pool. Yes,an in ground pool in Chicago. These building have many different floor plans from 1 bedroom 1 bath to 3bedroom 2bath duplex units with penthouses and private decks.  Every lobby in the complex has a fruit theme reflecting to the original purpose of the buildings as a fruit market. So there is certainly a lot of character to this part of University Village.