Are you thinking about purchasing a second home in Highland Park, Chicago? Maybe you're looking for a getaway spot to escape the hustle and bustle of the city, or perhaps you're considering an investment opportunity in a thriving market. No matter what your reason for owning a second home may be, it offers a number of benefits, including the opportunity to create lasting memories and generate rental income.
When purchasing a second home in Highland Park, it is important to consider the financial and logistical aspects. These are factors to consider when looking for a second home in Highland Park.
The Highland Park community
Highland Park is known for its many attractions and amenities, which is one of the advantages of owning a second home here. Many parks and nature preserves are located in the community, including Highland Park Beach, where you can swim, boat, and enjoy other recreational activities. The neighborhood also boasts several award-winning restaurants and shopping destinations, including the outdoor shopping center, Highland Park Plaza.
Living in Highland Park means enjoying the strong arts and culture scene. The Ravinia Festival, one of the oldest outdoor music festivals in the country, is located in Highland Park and hosts concerts and events throughout the summer. The neighborhood is also home to the Highland Park Art Center, which offers classes, exhibits, and events for artists and art enthusiasts of all ages.
A variety of family-friendly activities are available to those living in Highland Park, including a community center with sports facilities, a skate park, and playgrounds. In addition, the neighborhood hosts many community events throughout the year, including the annual Fourth of July parade and Farmer’s Market.
Highland Park real estate market
Highland Park's real estate market is known for being relatively stable and consistent. Over the past few years, home values have steadily increased, making it a good place to invest. However, it's always a good idea to keep an eye on market trends and consult with a local real estate agent before making a purchase.
Highland Park's real estate market is currently robust, with a wide range of properties available at varying price points. The median home value in Highland Park is around $623,000 as of March 2023, making it a somewhat affluent neighborhood. However, there are also more affordable homes for sale in Highland Park, such as condos and townhouses.
Depending on your budget and preferences, there's likely a property that will suit your needs. Be sure to consider the cost of maintenance and upkeep for the property type you're interested in.
Budgeting for a second home
A second home's cost is one of the most important factors to consider. There are a variety of homes for sale in Highland Park, from apartments to single-family style, but owning a second home can be costly. It's important to have a realistic understanding of these costs before making a decision. You should first determine how much you are able to realistically afford to spend on a second home by examining your income, debt, expenses, and savings.
Consider your budget when determining if you can afford a second home by factoring in a down payment of at least 20%, even if you choose not to put that much down. In addition, owning a second home means paying property taxes, maintenance costs, and utilities. Renting out your second home can also impact your finances, so make sure to consider the potential rental income and the rental costs before renting it out.
Consider your long-term goals when determining if you can afford a second home. Can you save for retirement or other financial goals if you own a second home? Consider the long-term impact of owning a second home and take a holistic view of your finances. In addition, a financial advisor and a real estate agent can provide valuable guidance when purchasing a second home and insights into the market to help you find the right property for your budget.
How often will you visit?
Proximity to Highland Park is a crucial factor to consider when deciding whether to purchase a second home in the area. The closer your primary residence is to Highland Park, the more convenient it will be to travel to and from your second home. This means that you will have more opportunities to use your property and enjoy all that Highland Park has to offer. On the other hand, if you live far away from Highland Park, it may be difficult to make frequent trips to your second home, which could impact how often you are able to enjoy the property.
Another factor to consider when contemplating a second home in Highland Park is how often you will be able to use the property. Even if you live close to Highland Park, you may not be able to use your second home frequently if you have other commitments or interests that take up your time. Therefore, it is important to assess how often you will really be able to enjoy your second home, whether it is for weekend getaways or extended stays during vacation periods.
The rental market in Highland Park
Renting out your second home through a vacation rental company when you're not using it can be a smart financial move that can help offset the costs associated with owning a second home.
By renting out your Highland Park home, you can earn additional income to cover expenses such as property taxes, maintenance costs, and utilities, which can help reduce the financial burden of owning a second home. Additionally, renting out your second home can help you maximize your investment by generating rental income that can help you pay off the mortgage faster and increase the property's overall value.
The rental market in Highland Park is in high demand, especially for prime locations. Due to the neighborhood's attractive location and amenities, rental prices can be on the higher end compared to other suburbs in the Chicago area.
Start your Highland Park home search
With careful consideration of your budget and goals, as well as working with an experienced real estate agent like Karen Stroble, you can navigate homes for sale in Highland Park and find the perfect second home to fit your needs and lifestyle.
Karen's extensive knowledge of the Highland Park real estate market and her dedication to her clients can help you throughout the buying process and ensure that you find the perfect property for your second home. Start your search today and take the first step toward owning your dream second home in Highland Park!