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牋牋牋牋牋� There are four building blocks to factor into your decision to purchase real estate – research, location, finance and your team.� Try to budget at least 2 months to complete this process.� This guide will provide an overview of the important components.

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牋牋牋牋牋� The real estate market in Hyde Park and Chicago overall is very vibrant.� The Hyde Park area is undergoing a revitalization that gains momentum every year.� New construction and rehabs of existing buildings have increased markedly over the past several years.� Hyde Park is one of the few remaining communities that is close to the lake, close to downtown, and has yet to be “revitalized”.

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There are three basic types of real estate in Hyde Park – actual homes, condominiums and townhouses.� The great majority of real estate is in the form of condominiums or townhouses.� Each comes in three varieties – existing, rehab of an existing building, and new construction.牋 Naturally, each has its own strengths and weaknesses.� Early on, you should evaluate all possibilities.� Though you will be purchasing your own place, you will also be buying into an organization.� Condominium and townhouse organizations exist to address common issues – the roof, general maintenance, snow and trash removal, etc.� Consequently, there are monthly assessments that can range from $100-500.� One of the key questions to ask is the size of the association’s reserve – do they have enough money should repairs be needed.

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Research is essential.� Resources include the Web, a Real Estate Broker, newspapers, self-help books, and friends.� Before meeting with your broker, compile a detailed list of the attributes of the home you want.� What is a must have, and what can you live without?� Once you have a profile, then meet with the broker.

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Location, location, location.� If you decide to purchase in Hyde Park, you will need to decide how close you want to be to the University, shopping, etc.� An important element in this decision is to compare neighborhoods.� There is marked variation block to block.� Parking is an important factor.� Does your condominium or townhouse include parking, is parking an additional item sold separately, or is parking available only on the street?� Finally, location is also applicable to when you sell the property.� Again, use comparisons to assess prospects for the future.

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Finance.� There are several methods to determine your budget and price range.� In general, there are six expenses – the down payment, closing costs, the monthly mortgage payment, the monthly condominium/townhouse assessment, property taxes and property/general liability insurance.� The standard down-payment is 20% of the purchase price.� Of course you can put down less than this, but you will have to pay PMI, a form of mortgage insurance.� The mortgage banker should provide financing alternatives to you – fixed term mortgage, adjustable rate mortgages, etc.� It is important to properly budget the TOTAL monthly costs.� As a very rough, back of the envelope calculation of the monthly mortgage payment, assuming an 8.0%, 30 year fixed mortgage – take the sales price, double it and divide by 30.

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Your team is very important.� You will need a real estate broker, a real estate lawyer, an inspector, a mortgage banker, and a tax accountant.� The real estate agent should be able to provide a list of parties with whom they have worked in the past.� In the beginning, the real estate agent should do the leg work for you and present properties to you.� The mortgage banker should assist you with the financing alternatives and getting you approved.� The lawyer will handle reviewing the contract, the title, and closing procedures.� The inspector will review the property.� The tax accountant should assist you with budgeting and tax planning.� Though this may seem like a lot, do not cut corners.� Purchasing a property is a very large investment and is worth doing right.