Smart Budgeting For A New House In Chicago

By Iona Carina of The Chicago Real Estate Blog

Maybe you’re walking around the town and see the signs new condominiums and new homes for sale in Chicago. Then you start thinking, it might be the time to make a transition from renting to owning your own property. The Chicago real estate industry keeps growing every time so it should be a good investment move to own a condo or a house.

You need to keep in mind, though, that there are expenses that you need to be ready with after you make a decision to buy a property. Calculate your budget carefully and thoughtfully beforehand so your new home can be a real comfort for you instead of a burden.

Monthly Mortgage Payment
There are expenses that surprise people who convert from renting to owning but monthly mortgage payment is not much different from monthly rental. Depending on your plan, some payment might be cheaper than renting. Preparing your budget for this is a must.

Insurance
Your condo or house needs to have insurance to protect your property from unwanted events like fire, flood, theft, etc. Of course, let’s hope that won’t happen to your house. But in case it happens, you can at least get some compensation from your valuable possessions. Also, to avoid any of those things, you can install adequate security system in your house. There are some insurance plans with a combination of house and auto insurance. It might save you some bucks.

Property Taxes
You need to check the Illinois state law in order to find out how much you will be taxed for your house or condo in Chicago. The amount depends on the value of your property so this is something to think about before signing the papers.

Homeowner’s Association Fees
These are the fees that many people tend to overlook. You will be charged with these fees if you neighborhood belong to a homeowner’s association or if you live in a condominium. The fees are generally used for the condo’s area upkeep like the water and sewage, clubhouse access, lawn and garden, swimming pool and other common areas.

Yes, it sounds like a lot but don’t be scared by the sound of expenses. Buying a real estate property gives you an ownership title which is a great investment for the future. As long as you carefully estimate your budget, then you’re on the right track.