Chicago condominiums have become a major part of the Chicago real estate business. Instead of renting an apartment or buying one of the homes for sale in Chicago, Illinois, many are opting for Chicago condominiums instead.

In 2004, 51,662 Chicago condominiums were sold. In 2003, 47,212 were sold. That constitutes a remarkable 9.43% increase in sales in just a one-year span. As a result, the median Chicago condominium price increased by 9%, as per the law of supply and demand.

A further effect can be seen in that in 2003 the typical Chicago condominium sold for $178,000, but, in 2004, sold for $194,000.

Owning one of the many Chicago condos for sale adds more legal and economic responsibilities via obligations to the Chicago condominium associations that ownership makes a buyer a part of. These associations affect Chicago condominiums from the very beginning of their ownership with the initial approval of the new Chicago homeowner and the determination of the amount of Chicago condo assessment fees. Such fees go toward the maintenance and repair of the Chicago condo building's common areas and the overall building. The purchase costs when buying one of the many available Chicago condominiums include: a down payment, lawyer fees, Chicago condo inspection fees, and Chicago condo warranty and insurances fees.

Compared to investing in another kind of Chicago property such as a downtown Chicago apartment, Chicago lofts for rent, or one of the many homes for sale in Chicago, IL, investing in Chicago condominiums holds several notable advantages.

Given prices are expected to continue to increase, it is a worthwhile Chicago property investment. Also, a good portion of the mortgage payments and Illinois real estate taxes will be tax deductible. This is building equity with all the benefits of owning a single family Chicago home without actually owning one.

There are drawbacks to investing in Chicago condominiums as well. Obviously, there is the increased responsibility and the fact that the owner will have to answer to the Chicago Condo association that he or she belongs to. Also, once the paperwork has been filed and the money has been put down, the owner has to see this investment as a long-term one. It might take several years for Chicago condominiums to rise up and build his or her equity that it becomes profitable enough to sell. It may take even longer and, in the meantime, the owner will continue to shoulder the responsibility for maintenance and repair.

Also, the equity one might build after investing in Chicago condominiums depends a great deal upon that market. The owner as an individual cannot do much to affect the market if it experiences a downturn. For example, many of the speculators in the Chicago Condominiums market could decide to go into the stock market instead. This leads to more owners selling acquisitions than buying, which results in an oversupply of Chicago condominiums.

Anyone looking to invest in this type of Chicago property should be knowledgeable of the Chicago real estate market and how it affects Chicago condos and the potential advantages and disadvantages of their investment.