Our real estate market is nuts

[Klaus]

I'm talking about property price, not price per square meter of living space. Living space here would be in the ballpark range of 5000 Euro per square meter.

[George K]

@klaus said in Our real estate market is nuts:

I'm talking about property price

Ah, that wasn't clear to me. But, I'm only about 10% into my 1st cup of coffee.

Then living space ends up being about $560/square foot. Yeah, that's pricey.

[jon-nyc]

We sold in Brooklyn for a tad over 1k/sq ft and bought here for less than half that.

But one would expect that in a trendy neighborhood in NYC. Not in Klaus's town.

[Klaus]

@george-k said in Our real estate market is nuts:

Then living space ends up being about $560/square foot. Yeah, that's pricey.

How much would living space cost in apartments like yours, in the suburbs of Chicago?

[Klaus]

@jon-nyc said in Our real estate market is nuts:

We sold in Brooklyn for a tad over 1k/sq ft and bought here for less than half that.

But one would expect that in a trendy neighborhood in NYC. Not in Klaus's town.

Exactly. You've been here, so you know it's not a spectacular place in any way I do wonder, though, how much the excessive property taxes you have to pay lower the prices.

[jon-nyc]

NYC has very reasonable property taxes. Quite low actually. They tax incomes (at city level, above and beyond federal and state) and of course they have business taxes of various sorts. So they rely little on property tax.

Westchester has the crazy taxes and it certainly does suppress housing prices.

[George K]

@klaus said in Our real estate market is nuts:

How much would living space cost in apartments like yours, in the suburbs of Chicago?

About $300/square foot.

In another suburb, this home is listed for $449K:

https://www.zillow.com/homedetails/940-S-Euclid-Ave-Oak-Park-IL-60304/3817268_zpid/

$273/square foot.

[Klaus]

I try not to bite in my shoe when thinking that I could live an hour from Carnegie Hall or Chicago Symphony Hall for the same money.

[George K]

@jon-nyc said in Our real estate market is nuts:

NYC has very reasonable property taxes. Quite low actually.

I haven't looked in a while, but that's my impression of Chicago as well.

A 3 bedroom condo in the Hancock Building, 1700 square feet, is about $695K.

HOA fees are $1500 monthly (that's pretty steep), but the taxes are $9300 per year, which is less than I pay.

https://www.zillow.com/homedetails/175-E-Delaware-Pl-APT-6605-Chicago-IL-60611/3850275_zpid/

[George K]

@klaus said in Our real estate market is nuts:

try not to bite in my shoe when thinking that I could live an hour from Carnegie Hall or Chicago Symphony Hall for the same money.

Actually, I'm about 30 minutes, if I take a cab from the train station. 45 minutes if I walk.

(insert "rub it in" gif here)

[Klaus]

@george-k said in Our real estate market is nuts:

@jon-nyc said in Our real estate market is nuts:

NYC has very reasonable property taxes. Quite low actually.

I haven't looked in a while, but that's my impression of Chicago as well.

A 3 bedroom condo in the Hancock Building, 1700 square feet, is about $695K.

HOA fees are $1500 monthly (that's pretty steep), but the taxes are $9300 per year, which is less than I pay.

https://www.zillow.com/homedetails/175-E-Delaware-Pl-APT-6605-Chicago-IL-60611/3850275_zpid/

Wait, but that still adds up to $27.300 in housing expenses per year!

[George K]

@klaus said in Our real estate market is nuts:

Wait, but that still adds up to $27.300 in housing expenses per year!

Yes. But, the HOA fees (Homeowner's Association) is the bulk of that. This is the 66th floor of a very trendy building in a very trendy neighborhood.

If you're willing to buy out in the suburbs, HOA fees are typically less than $500 for a comparable unit.

[Mik]

@george-k said in Our real estate market is nuts:

@jon-nyc said in Our real estate market is nuts:

NYC has very reasonable property taxes. Quite low actually.

I haven't looked in a while, but that's my impression of Chicago as well.

A 3 bedroom condo in the Hancock Building, 1700 square feet, is about $695K.

HOA fees are $1500 monthly (that's pretty steep), but the taxes are $9300 per year, which is less than I pay.

https://www.zillow.com/homedetails/175-E-Delaware-Pl-APT-6605-Chicago-IL-60611/3850275_zpid/

My property taxes are less than half that and I live in a township so no local income tax. We have outstanding schools. I wouldn't call your area reasonable.

[George K]

@mik said in Our real estate market is nuts:

I wouldn't call your area reasonable.

That's the Gold Coast, Mik.

Go north about 2 miles, and prices will be half of that for a comparable unit.

[Mik]

I meant half your taxes in Riverside.

[George K]

@mik said in Our real estate market is nuts:

I meant half your taxes in Riverside.

Oh, OK. Yeah, there's no question our taxes are high, but that's because we have no retail base in our town. The bulk of our tax revenue (non residential) comes from a couple of gas stations.

[89th]

@Klaus that increase is crazy! Maybe a result of urban flight? Hey...maybe move to Minnesoooooota!

[jon-nyc]

@George-K That HOA fee definitely affect the price. It's over half again what the mortgage payment would be.

[brenda]

@89th said in Our real estate market is nuts:

@Klaus that increase is crazy! Maybe a result of urban flight? Hey...maybe move to Minnesoooooota!

[Copper]

@klaus said in Our real estate market is nuts:

I'm talking about property price, not price per square meter of living space. Living space here would be in the ballpark range of 5000 Euro per square meter.

This is why we don't have metric houses.