Real estate is a part of most well-diversified investment strategies. When it comes to investment properties, a condo in Chicago can be a great choice for a variety of reasons.
For one, you might be able to get a great deal. Chicago’s market wasn’t one of the hardest-hit in the housing crisis, but prices have taken a long time to recover, and some appealing properties can still be found at great prices, especially if you’re willing to do some renovation work.
A condo is often a safer investment than a single family home, because it has more predictable income and expenses. For instance, in a condo building, it will be easier to estimate how much rent you’ll be able to charge for your property, because other identical units are likely also currently being rented. Maintenance expenses are also more predictable because the majority of maintenance will be done by the property management company, and is a part of the monthly assessment each owner pays.
As it is a major urban center, buying an investment property in Chicago means you’ll likely have no shortage of potential tenants, which in turn means a steady return on your investment. In fact, many urban professionals looking for career opportunities but lower cost-of-living are moving from coastal cities to the Chicago area.
As with any investment, keep in mind that there is an inherent risk in buying investment real estate. You’ll want to do your homework to make sure you choose the right neighborhood, the right building, and the right condo at the right price.