Rent-To-Own...A Good Option In This Market?

The weak housing market has prompted some home sellers to offer rent-to-buy agreements to prospective buyers. These buyers pay an up-front fee of approximately 1 percent of the sales price for the option to buy, and all the payments they make during the rental period go toward the principal. Most rent-to-buy agreements last for two to five years; and if the occupants decide not to go through with the purchase, they lose the option fee plus the rental payments.

Those that agree to purchase the home at the price specified when the agreement was signed also lose money if property prices have since fallen. Moreover, buyers who make late rental payments often find that these do not count toward the home purchase.

According to Arizona State University finance professor Anthony Sanders, "A good rule of thumb [is to] separate the rental decision from the purchase decision."

Source: Forbes 03/02/09

Copyright 2009 INFORMATION, INC.

New English Pub - Western & Schubert

There are some new eating establishments popping up around our neighborhood and I wanted to pass along some information regarding the newest development. Bo and Arden Fowler, the renowned owners of Fat Willy's are diving into the English Pub arena. If you haven't been to Fat Willy's yet, you are sorely missing out! But if you have, you know how fantastic their food is and I can only imagine how the cuisine at the new restaurant will taste. This new eaterie will be located @ 2700 N Western on the corner of Western and Schubert, just east of Fat Willy's and across the street from the movie theater. Awesome location...grab some fish & chips and a pint and then head to the show!

The Fowlers applied for and received all their permits last spring/summer. They have torn down the existing structure and have broken ground on the new four-story masonry construction building that will house this new restaurant. Here are a few pictures of the current construction:The restaurant's name has not been released, but as construction continues, I will keep you up to date on the news being disseminated. Thanks Fowlers for bringing another great local eating establishment to our beloved neighborhood!

2009 First Time Home Buyer's Tax Credit

Info regarding the new 1st time home buyer's tax credit has been released by the federal government. Here are the details:

Q: What is the amount of the new tax credit?
A: $8,000

Q: Who is eligible for this tax credit?
A: First time home buyers who closed (or will close) on an owner occupied property (home, condo, etc.) between January 1, 2009 and November 30, 2009

Q: How is the amount of the tax credit determined?
A: The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.

Q: I read that the tax credit is "refundable." What does that mean?
A: The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

Q: Do I have to pay back the credit?
A: No, as long as you occupy your home and don't sell your home for three years from the date you purchased it.

Q: I bought a home in 2008. Do I qualify for this credit?
A: No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit ($7,500).

For more information, please checkout this website or feel free to contact me with any questions.

New Construction: 6 Units @ 2445 W Logan Blvd

There is a newly constructed building on the east end of Logan Square that I have been watching over the past 6-12 months. I should have have provided month-by-month photos of the property, but that will have to wait until the next project I cover. So, for this project, I have linked to the floor plan and pictures so you can see what it looks like. The finishes are outstanding with gorgeous mill work, gourmet kitchens and spa-like bathrooms. The location is dynamite too, being just off Logan Blvd and about 4 blocks from the train.

The owner has sold 1 unit thus far (listed @ $459,000) and it is currently under contract, so we won't know what it sold for until it closes. Eileen Marie O'Grady (Koenig & Strey), the real estate agent that is selling these units, has had them listed for just over 100 days, which is about the neighborhood average for sales right now. The units are listed between $379,000 and $519,000 and they have already done a price reduction on the least and most expensive units, both by $20,000. Parking is included with each unit. The prices seem a bit high based on the current market and other comparable sales in the area, but there are not any new construction units like these within 6-8 blocks.

I predict that we will see a few more of these units sell over the next couple months as the weather gets warmer. With the beautiful finishes, the great location and parking included, this is an excelent opportunity. Please contact me for more information.

I-GO car sharing in Logan Square?

A few of my clients have been using the I-GO car sharing program over the past year or two and it finally dawned on me that this is a great program for a higher density area like Logan Square. Did you know there are currently seven (7) i-go car locations in our neighborhood? Here is a quick list of the locations:

• Darwin School parking lot (3116 W Belden Ave - Belden/Albany) - 2 cars
• Mega Mall parking lot (2500 N Milwaukee) - 2 cars
• City of Chicago parking lot, just north of Blue Line stop on Kedzie (2700 N Kedzie) Emmett/Schubert/Kedzie) - 3 cars
• National City Bank parking lot (2300 N Western - Western/Belden) - 2 cars
• Residential parking pad (Lyndale, between Washtenaw/Talman) - 2 car
• Vacant parking lot on Milwaukee just south of Armitage (West of Western) - 1 car
• McDonalds parking lot (Western/Milwaukee) - 2 cars

Gorgeous 2 Bed/1 Bath Owners Unit - 2724 N Troy

I have a new 2 bed/1 bath rental unit (approximately 1200 sq ft) for $1,650/month available starting 3/1 located @ 2724 N Troy in Logan Square.

This gorgeous owners unit has all been redone in the last year. 2nd floor unit w/ lots of windows and light. Brand new stainless kitchen with dishwasher, ice maker & breakfast bar. Bath with spa shower, in-floor heat under Travertine tile and designer built-in redwood countertops. Two spacious bedrooms with built-in closet systems. HUGE living/entertaining area. Great for dinner parties or if you just love lots of open space. Cozy radiator heat included in rent (worth $125/month over the year).

Nice fenced in yard--shady, very secure and private. Alarm system. You can even grow your own fruits/vegetables in the sunny garden! Huge basement with laundry and plenty of storage, even room for exercise equipment/painting studio. Garage space available.

Walk one block to Logan Square Blue Line stop, local restaurants (Dulays & Lula's) and parks. Easy on/off 90/94 at Diversey/California.

Professional manager lives in neighborhood. Solid credit required. Max 3 people. 12 mo lease (longer possible). 1 month's rent deposit.

Contact me with any questions.

How "Green" or Energy Efficient Is Your Home?

A great article in the Chicago Tribune caught my eye this morning regarding a home that is so energy efficient and airtight that it has lowered the monthly heating/energy bills drastically. Here's a link to the article: "Actively Seeking Passive Heating".

Also, I'll be posting some great information regarding a recent "energy audit" that we had performed at our house located in Logan Square. More details to follow, but we were just sent the report along with IR (Infrared) camera pictures and steps on what to do to make our home more energy efficient. I'm looking forward to making a few minor fixes throughout the house to lower our heat loss during the winter and our cooling loss during the summer. I would highly recommend this to anyone who might be concerned about your energy bills or just interested in how "green" your home, condo or multi-unit is. To get more info, contact Brandon Theile of the Chicago Energy Consultants @ 1.866.466.6697 or info@ChiEnCon.com.