When it comes to upgrading to a larger living space, homeowners in Chicago condo or high rise buildings have two options: combine two existing units or move to a new property. While both options have their pros and cons, combining two units can offer several advantages. In this article, we'll explore the benefits of unit combination and compare the cost to moving to a new property, using data specific to Chicago.
What are The Benefits of Combining Two Units?
More Living Space
Combining two units allows homeowners to create a larger living space that fits their needs. This is particularly beneficial for those who have outgrown their current unit and need more room for their family, work, or hobbies. With the increased living space, homeowners can also entertain guests comfortably and have more storage options.
Personalization and Customization
Combining two units gives homeowners more creative freedom to personalize and customize their living space. They can choose their preferred layout, design, and décor to reflect their lifestyle and personality. This level of customization is not usually possible when moving to a new property, where homeowners may have to compromise on certain features or settle for a design that doesn't quite fit their style.
Higher Property Value
Combining two units can also increase the property's value. A larger, more personalized living space can be more attractive to potential buyers or renters, resulting in a higher resale or rental value. Additionally, combining two units may increase the property's square footage, which can positively impact its value.
Moving vs. Combining Two units: Cost Comparison
Now let's compare the cost of combining two units to the cost of moving to a new property in Chicago, using data from Remodeling Magazine's 2023 Cost vs. Value report. Here are the estimated costs for both options:
What does it cost to Combine Two Units?
The cost of combining two units in Chicago zip code ranges from $150 to $400 per square foot, depending on the extent of the renovation and the materials used. For a 2,000 square foot unit, the estimated cost would be between $300,000 to $800,000. This cost includes the renovation work, permits, and design fees.
What does it cost to move to a new property?
The cost of moving to a new property in Chicago's can vary widely depending on the location, size, and condition of the property. According to Zillow, the median home value in the 60642 zip code is $636,000, and the median rent price is $2,700 per month. Assuming a 20% down payment and a 30-year fixed-rate mortgage with an interest rate of 3.5%, the estimated monthly mortgage payment would be $2,560, excluding property taxes and other expenses. This means that the total cost of buying a median-priced home in the 60642 zip code would be around $1,038,000 over 30 years. Alternatively, renting a median-priced apartment in the area would cost around $97,200 over three years.
Conclusion
In conclusion, combining two units in Chicago can offer several benefits, including more living space, personalization, and higher property value. While the cost of combining two units can vary widely depending on the extent of the renovation and the materials used, it can be more affordable than moving to a new property, especially given the current high prices in the local real estate market. Ultimately, the decision to combine two units or move to a new property depends on each homeowner's specific needs and preferences
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