Purchasing Property in South Shore Chicago

[Kristian Wheatley]

Hi,

I'm a new investor looking to get my first property. Ive lived in South shore before as I'm from the south side of Chicago but not since I've been an adult. In my experience South Shore is block for block meaning some blocks are nice and the next, not so much. Im also aware of the plans to improve the area but im still weary to purchase and live in the area. Im am seeking to buy on the 68th block one block from South shore drive and one block from the golf course. Im planning to live in whatever unit I purchase for a couple of years. Is this a wise decision or will I be buying into a crime-ridden area that won't see any real change for years to come? Id like to buy this property assuming that the value will increase with time. I would really appreciate any options on this topic. 

[Crystal Smith]

Originally posted by @Kristian Wheatley:

Hi,

I'm a new investor looking to get my first property. Ive lived in South shore before as I'm from the south side of Chicago but not since I've been an adult. In my experience South Shore is block for block meaning some blocks are nice and the next, not so much. Im also aware of the plans to improve the area but im still weary to purchase and live in the area. Im am seeking to buy on the 68th block one block from South shore drive and one block from the golf course. Im planning to live in whatever unit I purchase for a couple of years. Is this a wise decision or will I be buying into a crime-ridden area that won't see any real change for years to come? Id like to buy this property assuming that the value will increase with time. I would really appreciate any options on this topic. 

You're right about the South Shore. It has been a block by block thing for a number of years, but here's the bottom line regarding the trends and numbers for the area. Over the last 3 years, there's been a 28.7% growth in the median sale price of small multifamilies. Average market times which use to be high have come down & now match up with the rest of Chicagoland.  The challenge is supply-Where there use to be more supply than on average compared to the rest of Chicago, now there's less supply. What this all means is more competition that will drive up prices. Rents are now going up as fast as the property prices, but the prices are still low enough that right now you can find deals that will cash flow nicely.

Do not limit yourself to the 68th block. While you're looking for an opportunity on that block you'll miss out on other opportunities. Also, consider this- If you're objective is to build wealth by starting out living in a property, you do not have to live there forever. Purchase on the right block. Modify the property if you have to to protect your asset if required. Live there for a year then find another property and do it all over again.