I got my Oak Park FYI newsletter in the mail today and it has a mention that a new condo tower will be built at South Avenue and Harlem Avenue in Oak Park. Don’t we have enough condos in Oak Park? At any given moment in the current housing crash and real estate meltdown there are over 500 condos for sale in Oak Park already. So, they are wiping out 140 public parking spaces in order to get a parking garage under almost 100 new condos that no one will buy. There are about 10 rehab and new condo developments in Oak Park for sale already, that are not able to sell any units as it is. And any owner that wants to sell will never gain any equity or value or ever sell with this many on the market.
There is a glut in this area’s market because it is overdeveloped! So for the love of God, STOP BUILDING and Converting CONDOS!!! I know the big developers don’t care and the Realtors are happy to lie to people and say you will gain value year over year on your condo, but you won’t. (the old data they usually show you is from 1997-2003) Oak Park has a multitude of problems and the developers and Realtors are making it even worse. They are taking advantage of good people that haven’t lived here before and don’t know all the details on why it sucks to buy here like I did. Don’t get sucked into this trap. It can be a financial disaster and a huge mistake to buy a property in Oak Park.
The exact blurb from the newsletter is as follows:
“An agreement has been reached with Morningside Equities Group, Inc. on the terms for a new $30-million mixed-use project at South Boulevard and Harlem Avenue. The eight-story development will contain 96 condominium units, 12,500 square feet of new retail space and a parking garage in the heart of the downtown shopping area. The current site’s 143 parking lot spaces will be replaced with 245 public parking spaces in the new public garage. The public spaces are in addition to dedicated on-site parking for the condominium owners. The building will be designed and constructed to achieve certification through the Leadership in Energy and Environmental Design (LEED) green building rating system. A formal redevelopment agreement between the Village and Morningside is expected to be signed before the end of the year. The project then will enter the planned development process, which includes opportunities for public comment. For more information on the project or process, call 358.5644 or e-mail devsvcs@oak-park.us. “
They don’t tell you that it costs $100-$150 per quarter to park in a public lot.
Here are the reasons NOT to buy any property in Oak Park ever:
1. Whatever you pay for the new, rehabbed or redeveloped condo you buy will be worth less a year from now and still worth less 5 years from now. The housing slump isn’t creating this problem, overdevelopment is. This was happening in Oak Park two years before the rest of the country had a slump. In the 1990′s Oak Park had a mini-boom and many people saw their real estate value jump up each year, but since about 2003 only stand alone houses have increased in value. There has been a glut of condos for sale since 2001 and that has caused condominium values to drop and stagnate at these lower levels. (simple economics, there is not enough demand and an over supply; not that many people want to live there because of the crime and extremely high costs) They get away with this scam by putting fancy granite counter tops and new appliances in very old buildings with lead paint, lead pipes, bad windows, sagging floors and leaky roofs. Many young first time home buyers buy into it thinking it will be new and redone and face thousands of dollars in additional work that has to be done afterwards. A friend of mine has had a leaky roof problem that will cost him $30,000.00 to fix. The builder is being sued but even if they win he won’t see that money for at least 5 years. So he is paying out of pocket with a second loan and a second morgage payment to get the water to stop coming in his condo. It’s a nightmare. You should be aware of these risks. You could be buying a place with serious faults that causes you to spend thousands of dollars to fix it and then your property value drops on top if it. It’s a double bad situation.
2. Oak Park taxes are higher than anywhere else I have lived and higher than most places in Chicago. Why? Because the city has nowhere to gain revenues from except it’s residents. There is no business or industry or commerical property to make money from. The largest employers in the town of Oak Park are the Rush Oak Park hospital and #2 is the town of Oak Park. That isn’t much and the small stores and small businesses there don’t generate enough sales tax revenue or other taxes to pay for much. So they devised this parking ticket scheme to make money and taxes are very high. They say to count on 2.5% of your home’s purchase price. An average home in Oak Park is vintage (needs a lot of work every year) and costs $500,000.00. That makes your property tax bill $12,500.00 per year and $1,042 per month. There is a homeowner exemption, but that is just $400.00. Not much help. By comparison in Downers Grove a 500K home will get a 1.5% tax bill of $7,500.00. And that is in a town of lower crime and better schools. So, that is pretty convincing to me.
3. The Parking in Oak Park is rigged on purpose. It is in place to make money for the town by taking advantage of the fact that there is very little parking available. It’s the scam of the century. Oak Park doesn’t make enough tax money from businesses because it’s almost all residential and something has to pay for all the police, new schools and the salaries of the town of Oak Park’s employees since it is the largest employer in the town. They don’t require builders and developers to provide parking spaces or garages with the property it develops or converts on purpose. They purposely want to restrict the availability and access of parking so they can make a large chunk of their revenue from parking tickets each year. (the article above is only including enough parking to replace what was there and the parking for the high priced units, not enough for people who don’t have parking now, and it doesn’t help people who don’t live in that area of the town who don’t have parking) The parking ticket agents hunt cars down and know when the lot time or meter expires and are ready to write a $30, $50 or $100 dollar ticket. And they will write you more than one in a day if they can. ( I couldn’t be surprised if they have quotas to fill or get bonuses for writing more tickets) The town also puts a boot on your car wheels and suspends your driver’s license if you have more than 3 unpaid tickets. In Oak Park, that can take about a day and a half to accumulate, and then you have to pay $150.00 and get them to remove the boot plus the original tickets. People say the parking is bad here, but no one has been able to get the city government to do anything about it because the government is profiting of the problem they purposely created to take advantage of residents. They also know low income people aren’t active in politics or in donating to their campaigns so they aren’t pissing off anyone they care about or depend on, and they take advantage of those who live in low income housing and low priced condo units. Don’t give Oak Park any more money and certainly don’t park there.
4. There is a lot more crime, theft, drugs and gangs in Oak Park than a Realtor would like you to think. Oak Park is in many ways an extension of the City of Chicago and an extension of the City’s problems. No one talks about the crime, it is always very hush hush and hard to find out about. The crimes range from bikes stolen to cars broken into and stolen to break-ins and some homicide deaths. (those usually make the news) There have been more homicides in Oak Park every year since I have been here, yet no one talks about the rate going up. It is also curious that every time there is a helicopter circling overhead, another escaped criminal is in Oak Park. They get out of the Cook County Jail and make a beeline for Oak Park because it is next to Maywood and Bellwood or the West Side of Chicago. Do you think that maybe people are also having a hard time existing in this town with all these costs and regulations and are turning to drugs, theft and crime to try and get by? Not everyone makes over 100K a year and can afford all the costs of Oak Park, and for a lot of low income people who have been born and raised here, Oak Park is very frustrating.
5. Oak Park is very very polluted and dirty. I-290, the Metra trains and the cargo freight trains all make Oak Park a very polluted place. Black soot falls from the sky daily landing on windowsills and cars which is from the diesel freight train engines that stay parked and running all night next to 290 or along the Metra lines by Lake Street and South Blvd. The car pollution is bad and the noise pollution is even worse. They even route the air traffic from O’Hare and Midway overhead to make sure we get all the possible toxins we can. It is much more polluted than the rest of the Chicagoland area but people don’t talk about it, because no one is supposed to know.
6. When you try to sell your condo you will need 12 months or more to find a buyer because there are 500 other condos for sale and almost no buyers. You will be forced to pay a village property sales tax of $8 per each $1000 of your sale price called a property transfer stamp. (no other town has this!) With all the fees including the property transfer tax stamp and the realtors, lawyers, cook county and the state of IL, your fees will run about 10% of your sale price. I know I just finally sold. That was what the total was. So you have to make more than that 10% you loose to fees, just because the property is located in Oak Park.
7. They are public works project happy. The government in Oak Park is the largest employer of workers in the town and they see public works projects as their birthright and choose anything and everything to build in order to spend tax payers money. There have been propsals floated for every hairbrained idea from capping 290 and making it a concrete tunnel with a park on top to more and more condos. Basically everyone pays for these (like the ginormous library nobody uses?) and nobody really benefits.
Do yourself a favor, and buy a home anywhere outside Oak Park and Chicago, out in the real suburbs where it’s your right to park anywhere you want any time you want, and your home’s value will increase at a rate faster than inflation. Plus the schools are a lot better out there and it is much safer to live there too. Don’t fall into the trap of living in Oak Park it will cost you more money and you get far less than in other suburbs.