Timing is Everything

Q: "I own a home in Provincetown. I recently accepted a position in Chicago, put my South End condo on the market and actually sold it for a fair price. I guess timing is everything even in a slow market. Here’s my question: Should I rent or buy in Chicago?

The market is such a buyer’s market that I’d hate to miss an opportunity. Follow up: Since I won’t be going to Provincetown nearly as much, should I sell the home? I bought it in the mid nineties, have a strong equity position and can be a realistic, competitive seller. "

A: What a great question for the current times. Let’s start by addressing the inquiry about renting or owning. The current real estate market is projected to remain soft for at least another year. You may want to find a rental unit in a suitable location for one year. In that time you will determine which neighborhood in Chicago suites your lifestyle and real estate needs. One year should also be telltale as to whether the job you accepted is going to work out. You may find yourself not liking Chicago or the job.

The first half of 2008 was strong for Provincetown sales. We have seen a correction of about 10+% decrease of value in most cases. If you don’t have to sell than exercising prudence in this instance is strongly recommended. If you can handle the expense of a home in Provincetown then you may want to hold it until the market rebounds, which it will inevitably do. You may want to protect that strong equity position and watch it grow with the next upturn. In the meantime, you may want to rent it out for extra income, hire a management company to look after it and wait.