Are you tired of shelling out money for rent every month? Do you dream of having a space to call your own? If you’re a renter in Chicago, 2023 might just be the perfect year to start considering homeownership.
Here are just a few reasons why buying a home in Chicago in 2023 might be a wise financial decision:
- Low Interest Rates One of the most compelling reasons to buy a home in 2023 is the current low interest rates. Mortgage rates have been hovering around historic lows for some time now, making it more affordable than ever to finance a home purchase. By locking in a low interest rate now, you could save tens of thousands of dollars over the life of your mortgage.
- Appreciating Property Values In recent years, Chicago’s housing market has experienced steady growth, with home values increasing by an average of 4.4% per year. This trend is expected to continue in 2023, making it a great time to invest in property. In Chicago’s Bucktown neighborhood, median list price was $799,000 in February 2023: which is up 34% from this time last year. By buying a home now, you could potentially benefit from the appreciation in property values in the years to come.
- Build Equity The estimated average rent in Chicago is over $2,000 a month and there is no relief in sight. As a renter, your monthly payments go towards your landlord’s mortgage, not your own. By buying a home, you’ll start building equity in your own property. Over time, this can provide financial stability and even create opportunities for refinancing or taking out home equity loans.
- Tax Benefits Owning a home comes with a number of tax benefits that renters simply don’t have access to. For example, you may be able to deduct your mortgage interest, property taxes, and other expenses on your tax return. These deductions can help reduce your overall tax liability and put more money back in your pocket. In Chicago’s Cook County, the Homeowner Exemption reduces the Equalized Assessed Value (EAV) of a property by $10,000.
- Greater Control When you own your own home, you have greater control over your living situation. You can make renovations and improvements as you see fit, and you don’t have to worry about getting permission from a landlord to make changes. Plus, you’ll have more stability and security, knowing that you won’t have to move every time your lease is up. Living in one place for a longer amount of time creates a sense of community pride that can lead to more investment in Chicago. While buying a home is a major financial decision, it can also be a rewarding one. By taking advantage of the current low interest rates and the appreciating property values in Chicago, 2023 could be the perfect year to take the plunge into homeownership.