I’ve been working with many new buyers this summer and the number one question I receive from first time buyers is what are the advantages to buying over renting? Just so I don’t overwhelm 1^st time buyers I’ll make this blog a series starting with the Top 3 Benefits of Becoming a 1^st Time Homeowner.

1 – Tax Advantage: Without going into too much detail there is a tax write-off for your mortgage interest, property tax, and other various home payments surrounding the financing of your home. This write-off will help lower your income tax you owe to the federal government. For more information on the tax benefits for homeowners check out: http://www.bankrate.com/brm/itax/news/20030207a1.asp

If you’re renting the tax savings goes to your landlord.

2 – Home Appreciation: In strong real estate markets, homes appreciate a certain percentage each year. For example, if you buy a condo for $300,000 and put 10% down ($30,000); and your home appreciates 3%, that’s a gain of $9,000. So you’ve gained $9,000 on a $30,000 investment – that’s a 30% return on your investment.

If you’re renting you don’t see the appreciation gains because you don’t own your home.

3 – Building Equity: While home appreciation has to do with the general market conditions, home equity has to do with your individual investment. As you pay your mortgage, you are building equity (i.e. ownership) in your home. Further, any home improvements you make build equity by boosting your home’s value. For example, an improvement such as replacing carpet with hardwood floors increases the equity because the hardwood is much more desirable and increases the value of your home.

If you’re renting you’re paying someone else’s mortgage and not building equity for yourself.

If you’re contemplating making that leap into home ownership feel free to contact me with any questions.

A few of the other topics in the series will include: Is what is said in the media pertinent to me as a first time buyer? The Steps to take before I Decide to Buy? Questions to ask my Real Estate Agent? To be added to my monthly newsletter and get updates on this series go to my website at www.neetiarndt.com.

I wanted to post an interesting article I read this morning on CNN.com about how an analyst was comparing the boom in oil prices to the boom in housing prices a few years back.  The writer is stating that just as the housing market a few years back saw an over-abundance of builders try to take advantage of the high prices and eventually create an excess of supply that oil companies are going to do the same.  I think this is very optimistic on his part but the point he is trying to make is that with oil prices so high that eventually more and more companies will get into the market to take advantage of this and eventually the supply will be greater than the demand.  This would hopefully lead to an eventual crash in oil prices just as the recent drop in home prices.  Read it for yourself and let me know what you think: http://money.cnn.com/2008/06/06/news/economy/tully_oil_bust.fortune/index.htm?cnn=yes  

Mitch Schuman
Real Living Helios Realty

Summer festivals are one of the best parts of living in Chicago. Each year, various organizations and neighborhood communities across Chicago come together to put on outdoor street fairs to show off art, food, music, and other local culture.

Time Out Chicago's online edition has a great reference for all the Chicago summer festivals which will give you all the details on dates, times, and descriptions of the festivals.

Everyone has their favorite festivals of the summer, here is a list of favorites from the agents at Real Living Helios Realty -

1) Taste of Randolph
2) Old Town Art Fair
3) Bucktown Art Festival
4) Summer Dance
5) Taste of Lincoln Ave
6) Blues Festival
7) Sheffield Garden Walk
8) Old Town School Of Folk Music Festival
9) Old St. Pat’s World’s Largest Block Party
10) Retro on Roscoe

JM

www.mlssearchchicago.com - to search the MLS to find homes
www.neighborhooddirectorychicago.com - to learn about chicago neighborhoods

Again this month, I went out for single family broker open tour.  For those of you not in the industry, the various Broker's opens are held on Tuesdays in Chicago.

I'm continuing my monthly summary of the broker's opens I attended. Today's blog will let you know a little more about a single family homes on Chicago's northside.   The prices ranged from 1,699,000 up to 2,500,000.

Once again:  Before I begin, I will ask you the question: What condo building, investment property, or single family are you intersted?  Send me an email about the property you are interested in knowing more about and the next broker's open I will attend and report back :)

The Properties:  1510 W Byron, 3720 N Leavitt, and 3156 N Pine Grove.

 3720 N Leavitt:  This was a nice home with unique quality upgrades.  It is priced at 1,750,000.   I was able to view this home and found a custom 5000 SQ FT home on a wide lot.  The living, dining, formal dining boasted quarter sawn oak & hand scraped walnut floors.  Lava stone kitchen countertops, oversized kitchen w/ sep. breakfast room.  The great room in this home has a custom ivory floor to ceiling mantle.  It is a 4 BDRM/3THS.  Wine room, exercise area w/ shower, and full family room with wet bar. 

What more could you want besides a slightly lower price?  Curb appeal, Bell school district, unique quality features, wonderful natural light, garage w/ deck with outdoor fireplace.    A definite home on the list if you are looking within the Bell school district. 

1510 W Byron:  Absolutely stunning new construction single family home in Blaine school district! Impeccable finishes throughout and attention to detail including tiger wood hardwood floors. Chef’s kitchen with commercial grade apps. Central vac, radiant heat in LL and all walkways and garage. Home sits on deep 150 foot lot and includes a huge backyard.

  3156 N Pine Grove:   Priced at 2,195,000.  This home is spacious, recently renovated Belmont Harbor praire style on an oversized lot w/ 6 bedrms, bright living-dining combo and open gourmet kitchen w/ great room.  The lower level rec room has 8 1/2 - 9ft ceilings.  It does have outdoor space / deck plus a 2-car garage.  This private "no outlet" city street allows for a slower paced environment.  The home has been renovated to today's standard upgraded finishes.  There are three smaller rooms and one large master bedroom all on one level.  There are two bedroom just off the family room on the lower level.  The finishes are not quite up to par with similar size homes of a new construction nature.   Of course, this home is only a couple blocks from the lake and steps away from all the fun Chicago has to offer.