East Lincoln Park luxury condo market

[Anupam Desai]

Hi all, I'm considering a move to Chicago and interested in hearing people's opinions of luxury condos in a prime location like East Lincoln Park. What I had in mind was relatively new construction places, 3/4 BR in a boutique building, maybe 1-1.5m range. It looks like rents for such a place might be around 6-7k. The reason I'm interested in something like this in particular is to keep the number of units I'd own down and have low maintenance and low fuss, reliable tenants. My day job is pretty busy plus the two young ones...leaves little time for managing properties. I anticipate returns would be lower on such an investment, which I'm willing to accept to a point, but am I generally better off paying a property manager and going to a different part of town? Thanks!

[John Clark]

Keep in mind that the luxury end of the Chicago market, particularly condos, is waaaaaay overbuilt, so you will have zero appreciation and possibly a capital loss for a long time.

Also, given Chicago's finances, property taxes are going to soar.

Further, the Illinois legislature just reported out of committee (so it will go to the floor and get voted on) a repeal of the current ban on rent control. Of course the bill will pass, and Chicago will immediately pass a rent control law.

Finally, how well do you know Chicago? Even if you are going to be here for several years, it might make sense to rent for a year, find some hidden gems of neighborhoods and invest there. Places like Lincoln Park, Gold Coast, Lake View, and such (Bucktown) are fully priced, so your appreciation will be limited.