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In 2008, I was in your shoes, eagerly embarking upon a promising career as a new BigLaw Associate. It’s surreal, right? Instead of classes and exams, your schedule is now filled with trainings, research assignments and client meetings, and there’s so much to learn on the job! You will soon be faced with exciting decisions about how to invest your hard-earned salary, and I am excited to share a few reasons to prioritize buying a home during your first year:
- The sooner you buy, the greater your return on investment. Although markets can fluctuate, the general rule is that over the long term, property values increase. For example, in Evergreen Park (a village just southwest of Chicago), the median single-family home price increased by 77% over the past 10 years, and in Highland Park, prices increased by 42% over 10 years. (Chicago Association of Realtors). According to the National Association of Realtors, people typically live in their home for 10 years before selling. Imagine the potential return on your investment 10 years from now!
- Buying vs. renting is a smart hedge against “lifestyle creep”. Lifestyle creep happens when we earn a higher salary, but spend it all and fail to save. This sneaky phenomenon is why many high earners end up living paycheck to paycheck, and lawyers are particularly susceptible. In the U.S., housing is our greatest expense, often at or above 30% of household expenses. While your specific circumstances will impact whether it is better to rent or buy (and there are many online calculators that will help you decide), one major advantage to buying is that your mortgage will generally stay consistent, although factors like having an adjustable rate mortgage and triennial property tax reassessments can cause mortgage payments to fluctuate. Landlords can (and often do) raise rent every year, and a surprise increase of $200 per month can wreak havoc on a tight budget. Plus, paying down a mortgage generates equity while paying rent does nothing to benefit your net worth.
- Many first-time homebuyers are just like you. The average age of first-time homebuyers is decreasing. In 2023, the typical first-time homebuyer was 35 years old, down from 36 in 2022. The national average income of first-time homebuyers in 2023 was $95,900. And the number of first-time homebuyers rose to 32% in 2023. Chicagoland’s widely diverse housing stock means that whether you are looking for a condo, townhouse, or single-family house, and no matter what your budget, homeownership is within your reach.
Buying a home is a major decision and it can be intimidating, but with the right broker at your side, it can be a fun and exciting journey… just like becoming a lawyer. Last year, 89% of buyers used a realtor to purchase a home, and as a former BigLaw attorney, I can help you find your perfect place. I look forward to working with you.
Sincerely,
Shahiedah Shabazz, JD/MBA
Real Estate Broker
Coldwell Banker Realty
shahiedah.shabazz@cbrealty.com
Cell: (708) 529-5623
https://shahiedah.com/
