Xavier University is Truly Developing in Norwood, OH

Just when you think Norwood can't possibly take on another development, Xavier University has planned to expand it's own reign over the area by expanding to the east with a new development called Xavier Square. Quickly becoming the most predominant university in Cincinnati, the 20 acre development will truly bring a new sense of life to the campus. The Xavier Square development is a joint venture between the Xavier University and Corporex Companies. Xavier Square, also known as East Campus, will consist of :

• 120,000 Square Feet of Office Space



• 100,000 Square Feet of Retail



• 90 Room Boutique Hotel



• 550-600 Student Apartments



• 120 Market Rate Houses



• A New University Recreation Center, Bookstore, and Health Center

The development will be located on the corner of Dana Avenue and Montgomery Road, right on the edge of Norwood. The development will be located directly across from the neighboring suburb of Evanston. 7 of the 20 acres was donated by BASF Chemical Plant to the school after a fire forced the company to relocate. The Zumbiel Packaging Plant moved to Hebron, OH in 2004 and sold the 9 acre property to Xavier.

Demolition should begin in 2008 and the first phase of building will begin sometime around the first of 2009. Living only 5 blocks from the Xavier Campus, I'm truly looking forward to the change. The Xavier campus unfortunately borders an area of distressed and occasionally boarded up homes in Evanston. The real estate is prime for student housing, but there is an above average risk of vandalism and crime that keeps students and owner occupied buyers away. Hopefully this change will be the start of a residential renovation surrounding the development that will bring about families and young professionals to the area.

Cincinnati Suburb Spotlight: Hyde Park Real Estate Market

About 100 years ago, several prominent businessmen came together to create a community in Cincinnati that would be geared to a higher class of people and have a reputation of an exclusive area. These businessmen planned to screen all residents looking to build in the community and deem only those found to be suitable for the area, permission to build a home. Houses would be showcases of grand scale and luxury and the businesses would remain small and quaint. The overall goal was to bring the reputation of the famous Hyde Park area in New York, to Cincinnati.

A century later, Hyde Park still honors many of the principles it's designers had intended. The homes are still well maintained and much of the beauty still remains within both the homes and the tree lined streets. Residents include doctors, lawyers, presidents of companies and civic leaders. The retail in Hyde Park remains small and full of character.

Combine those factors with Hyde Park's low crime rate and its proximity to major arteries such as Interstate 71 and Columbia Parkway, and the east side neighborhood becomes an attractive location for single people and families, middle and upper class. A special charm like many city neighborhoods, the boundaries of Hyde Park are loosely defined. Though the city considers Ault Park to be in Mount Lookout, Hyde Park considers this jewel of a park to be its own.

Picturesque Hyde Park Square is more than the neighborhood's business district. It is the heart of Hyde Park. The square itself - a grassy, bench-lined park with a fountain at the center - is on Erie Avenue between Edwards and Michigan roads.

Lining the streets around the square are banks, dry cleaners, salons, exclusive clothing shops and gourmet food stores. The area is in constant activity. People jog through the square, families walk the sidewalks with strollers and dozens of others window shop as they eat ice cream from the Graeter's store on the square. The Echo, a diner that has served home-style cooking for 50 years, is considered an institution even beyond Hyde Park. Increasingly, those who shop at the boutiques and dine at the microbrewery (it's in a renovated bank and is aptly named Tellers) and other restaurants are from outside the neighborhood. Many patrons also are visitors who had heard about the square, either from friends or staff at the downtown hotels.

In the last three years, the businesses on the square have spent $2.5 million in renovations. At least 60 percent of the businesses are sporting fresh paint jobs, and the park in the square has gotten a makeover, with flowers and trees. Stability is a plus. Another attractive aspect of Hyde Park is the stability of the neighborhood, where homeowners are almost guaranteed to turn a profit when they sell. In 1990, the median home value was $132,099. According to the Cincinnati MLS, the median sales price in Hyde Park in 2007 was $295,000.

The only downside to owning a home in Hyde Park is the house will not be a new structure with modern amenities. You have to like old houses, you have to like hardwood floors and high ceilings, because BY and large, if you're going to come to the area, you're going to have an older home. The residential values are good, and they keep appreciating. Though it is often regarded as an oasis for wealthy people, Hyde Park is more than an upper-class community. Granted, there are secluded, sprawling million-dollar homes lining Grandin Road and surrounding streets. But the more visible - and accessible - parts of Hyde Park are filled with older, two- and three-story homes with porches, detached garages and hardwood floors. The combination of classes contributes to the neighborhood's appeal.

Some Other Quick Tidbits about Hyde Park:

* Hyde Park is part of the Cincinnati Public School system and includes a Montessori school - Clark Montessori School, 2 Catholic schools - St Mary's and Summit County Day, and one other private school in the area - Springer School and Center.

* Hyde Park is a strong rental market for young professionals and professionals families with short-term stays in Cincinnati. As a result, a large portion of young professionals buy their first home in Hyde Park or the surrounding areas.

* Investment properties in Hyde Park are abundant but hold a premium price for the location and appreciation capability. It's rare to find a multifamily property that allows for immediate cashflow with less than 10% down. It is also difficult to find investment properties to "flip" as so many investors watch the area that most good deals breed strong competition.

* Arthur's Restaurant is a hamburger joint right off of Hyde Park square on Edwards Avenue. It has the best hamburger that I have ever tasted.

Common Questions regarding Tax Write Offs for Real Estate

Q: I did some remodeling on my home this year resulting in about $10,000 in funds paid to contractors. Can I write off these improvements I made on my federal taxes?

A: It depends on how those improvements were funded. If you took out a home improvement loan, commonly referred to as a Home Equity Line of Credit (HELOC), or some other loan secured by your home to pay for the improvements, then you allowed to write off the interest expense on your federal income taxes if you itemize those deductions on your federal return. If you paid cash or used a credit card, you'll need to take out a HELOC to pay off the credit card balance or reimburse yourself in order to take the deduction. On a side note, keep track of what you paid to improve the home. You can subtract these costs, along with the costs to sell and costs of purchase, to determine a tax basis for the property.



Q: I just purchased a home, what deductions am I allowed to make on my federal taxes this year?

A: One of the most well known deductions that comes with home ownership is the ability to write off the interest you pay on your mortgage loan. You are only able to write off up to $1,000,000 and I don’t feel bad for those of you who have an interest amount higher than a million. This applies to your primary home and can also apply to a secondary home if you spend the necessary amount of time there, about 14 days per year or 10% as much as it’s rented.
When it comes to other types of loans that use your home as a security, HELOCs, you can deduct up to $100,000 of the interest as long as the total amount borrowed did not exceed the value of the home. During your first year of ownership, you'll receive a statement from your mortgage lender showing the amount of mortgage interest you paid that first year.

You can also deduct the cost of any points paid at the time of purchase. Points are pre-paid interest to the bank that results in a lower interest rate. In the future, you may choose to refinance your mortgage or take out a second mortgage. If you purchase points at that time, you may have to amortize that deduction over the life of the loan. The exception is if that loan is used to improve your home. The full amount can then be deducted within the first year.

Property taxes are another deduction allowed on your federal return. This includes both your primary residence and other properties owned as secondary homes or rental property. If you received a tax bill during that first year of ownership, be sure to include that amount on your return. The funds held in escrow to pay future taxes are not deductible.

Lastly, you are allowed to write off moving costs for a new home purchase if that home is at least fifty miles closer to your job that your prior residence. There is a stipulation that you must continue at that job for 39 weeks of the following year after the move. For those of you who work from home or are self employed, you are also able to deduct your moving expenses as long as your continue working at your job for 78 weeks over the next 2 years.



Q: I sold my house last year after living in the home since 1995 and made a profit of $300,000. How much of this profit is taxed?

If you lived in the home for 2 of the last 5 years, you are able to exclude up to $250,000 in profit from being taxed, and $500,000 for a couple who files jointly. This exclusion also covers land that is adjacent to your home as long as it wasn’t used for business.

Because tax rules vary based upon income and additional factors, please consult a tax professional for specific questions about your situation.

Southeast Norwood is the next Hot Neighborhood in Cincinnati!

Well, not the entire city of Norwood. But there is a 1 ½ square mile area south of the Norwood Lateral, West of I-71 and East of Montgomery Road that is creating quite a buzz for investors and homeowners in the area. According to the Cincinnati Multiple Listing Service, properties in this area of Norwood have appreciated by 45% over the past 7 years. That’s more than double the average appreciation for Cincinnati as a whole.

There are three main reasons why Norwood is seeing a sizeable increase in home values and experiencing a transition from blue-collar town to a desirable community for young professionals.

The first reason is Norwood’s great location. Norwood’s eastern neighbor, Oakley, experienced rocket appreciation during the early 2000s. Home after home was being renovated and sold for big bucks. The longtime dark shadow of Hyde Park was now becoming a hot neighborhood on it’s own. Today home prices in Oakley more resemble those in Hyde Park. The average sale price in Oakley was just over $190,000 in 2007. As a result, first time homebuyers are having trouble keeping up with the rise in home prices for this area and are slowly moving to more affordable alternatives. Southeast Norwood borders Oakley to the left and Hyde Park to the north. Southeast Norwood is about as far from Oakley Square and Hyde Park square as the neighborhood of Mt. Lookout. It also has easy access to I-71 and I-75 via the Norwood Lateral.

The second reason for Norwood’s success is it’s aggressive move towards commercial development. The city has aggressively marketed the town to developers resulting in several projects taking place; i.e. Rookwood Development (Rookwood Mall and Rookwood Commons), Surrey Square (located on Montgomery Road in the heart of Norwood), and Linden Pointe (just north of the Lateral, west of Montgomery Road). These developments are bringing more jobs and retail to the area and with that comes tax dollars for the city.

The third reason that Southeast Norwood is a hot neighborhood is because it contains beautiful streets with beautiful homes. The same home styles that you’ll find in Hyde Park and Oakley are also abundant in Southeast Norwood. Century old two and three story homes with tons of character are regularly being renovated and sold between $200,000 and $300,000. This area is ripe for both investors and homebuyers.

So next time you look for properties in Oakley and Hyde Park, be sure to add Southeast Norwood into your search.

5 Common Myths About Buying Foreclosures in Cincinnati

Since I began working with foreclosed properties a couple years ago, I’ve come across several myths that buyers and investors tend to believe. Hopefully this article will put five of the most common myths to rest and educate you about buying foreclosures.

1. The amount paid at the Sheriff’s sale matters. A Sheriff’s Sale is a public auction of real property which takes place at the end of the foreclosure process. When payments have not been made, the lender files suit in Superior Court to terminate the property owner’s rights of possession so that the lender may sell the property to recover its loss. If the lender prevails, the Court then directs the Sheriff to schedule the property for sale. The lenders will generally not let their foreclosed properties sell for less than what is owed to a public buyer. The majority of properties that go into foreclosure are worth less that what is owed on the home, either due to deterioration or over-borrowing on the equity. At the time of the auction, the lender’s representative is instructed to bid up to a certain price, usually above what is owed on the property. Sometimes that representative has an “upset” price, which is the maxmimum price that the lender is authorized to bid. This amount is announced by the lender’s representative to keep the lower offers out of the bidding process, keep the purchase price down, and save on commissions to the sheriff. Rarely are these final bids an indication of what is owed on the property, what the property is worth on the market, or how much the bank has in it.

2. The bank does not know the condition of the property (a.k.a. the bank doesn’t know how much I have to put into it to fix it up). The banks is very aware of the condition of the property. When a property is taken back by the bank, it goes through a thorough process to determine the condition and value of the property. Two or more real estate agents tour the property and complete a report for the bank. This report indicates any repairs needed to bring the property into good condition, a Comparative Market Analysis indicating value, and several pictures. Appraisals can also occur to help the bank determine the home’s value. The bank knows when homes need bath and kitchen renovations, they know about the roof leaks, and they know about the structural issues. In order for me to do my job, I want the bank to price their properties as accurately as possible. Why would I not report to them all the problems that would bring about a more accurate listing price?

3. You should lowball the bank. You SHOULD NOT lowball the bank. The banks go through an extensive process to accurately value their homes. You should treat a foreclosure home just like any other home on the market. The banks price their homes where they expect to receive an offer. Lowballing the banks should be looked at the same as lowballing a normal seller. If we think that $100,000 home should be sold for $50,000, we’d have recommended a list price of $54,900 in the beginning.

4. The bank will not care if I fix it up the property before the closing. This is a common myth that can get you into a ton of trouble. Not only are you violating laws by trespassing and modifying property that you do not own, you are also at risk of causing damage to the house. It’s common for accidents to happen and causing a fire to a house you don’t own can land you in a ton of trouble. At the same time, lender owned properties are known for having title defects that prevent them from closing. You may find yourself in a situation where you put time and money into a home that you are unable to purchase. Lastly, it puts the agent at risk of being fired by the lenders. Not only should buyers avoid working on the home prior to purchase, but they are also not to be visiting the property without an agent’s supervision. So think twice before you decide to attempt to work on a property prior to closing.

5. You can’t negotiate with the bank. Actually, you can! Banks will negotiate prices, closing dates, payment of closing costs, and have even compensated buyers for termite treatment. And since bank owned properties are strictly sold AS-IS, you should never expect for repairs to be made.

New Construction is Experiencing Rough Waters...

A great article came out today in the Cincinnati Business Courier about the Builders in the Cincinnati marketplace. We all know that Real Estate is down across the country and about 2% here in Cincinnati. But revenue reported by the top 25 New Construction Builders in the area has dropped 25% since 2006! Several new builders came into the Cincinnati market when the boom first began. The cost for land in Cincinnati was significantly less than most major cities in America. Currently, these builders are doing anything they can to survive. Beazer homes announced that they were pulling out of the Cincinnati Market last week. Ryan and Ryland homes have both pulled out of several communities in the area and stopped their plans to expand into new areas in the upcoming months. Major staff cuts have occured and builders have moved away from staffing every community with a sales rep. There are 4 builders in the area that have reported revenue increases. Towne Properties has made their revenue through income producting properties. Ashley Construction and Robert Lucke Homes have ventured into commercial construction and home renovations. Drees Homes is looking to stand out from the pack by marketing their homes as Energy Star Efficient. The Building Community expects sales to continue to be low throughout the rest of the year but are looking for for the tide to turn in 2009.

Thank Goodness We Live in the Midwest

Over the past 2 days, the rain has pounded the Cincinnati area causing my car to get dirty and my dogs to excitedly bring mud into the house several times a day. As much as I hate the rain, it is the perfect time to go house shopping!

I don't know how many times I've heard stories about buyers moving into their new home and after the first major rainfall, they realize that they bought a home with water intrusion issues. "Can we sue the seller? Can we sue the agent? Can we sue the home inspector?" they always ask. Well in order to win any kind of judgement against any of these parties, you would need to prove that the party had knowledge of the severe water intrusion issue and did not disclose it. That is never an easy task.

Anyways, a day of heavy rain will not only tell you if there are water issues in the basement but also if there are any issues with the gutters, roof, and grading around the house. If there is an issue with any of these areas of a home, it can be very costly for the new buyer. So next time you hear of a big storm approaching, call your agent and let them know that you want to go see some property. (Just be sure not to drag mud into the homes.)

Let's Compare the Hyde Park Market to the City of Cincinnati

This graph compares the average sales price movements for Hyde Park to the City of Cincinnati. Note that Hyde Park has experienced sporadic movement month to month regarding the average sales price but has continued to climb over the last 12 months. Similar to the stock market, Hyde Park continues to be a safe long term investment.

The City of Cincinnati on the other hand has remained pretty stable, even decreasing in value of about 2 1/2 percent over the last year. There are several neighborhoods that have contributed to that decline more than others. What you need to remember is that you're looking at an average value. There are nearly as many neighborhoods that have gained value as have lost.

The new campaign for the National Association of Realtors is that Real Estate is Local!. I want to drive the point home that not only is the City of Cincinnati's market different from Los Angeles, but also that neighborhoods within Cincinnati are different.

Contact me if you'd like to learn more about what Cincinnati neighborhoods will give you the best chance for appreciation over the next few years!

Cincinnati Real Estate - Trulia

Is the Cincinnati Market Bad???

Well, that all depends on whether you’re buying, selling, or renting.

If you’re a buyer or renter, the market is GREAT and you couldn’t hope for a better situation. This is your opportunity to take advantage of the great deals in the market. If you’re a renter, don’t expect your landlord to be raising yourrent anytime soon.

Sure Ohio Sales Prices slipped 2.7% this May versus May of 2006, and the amount of homes sold dropped 3.4%. But is all the negative press really necessary?

When gas prices shot up, people cried FOUL! But now that they’re starting to lower to more appropriate levels, no one is showing sympathy towards the oil companies. So why is it that we’re labeling the similar situation in the housing market a “Crisis”? We’re simply going through an adjustment period to better establish reasonable market value.

The true crisis for residential housing was the Boom a few years ago. Buyers were getting in over their heads with inflated prices and risky loan programs and sellers couldn’t make a good deal unless they were willing to move to a much cheaper market. The majority of people were stuck.

There is still plenty of opportunity for Sellers in today’smarket, if they’re willing to adjust their home’s price to reflect it’s market value for today and not 2 years ago. And sellers will still reap the benefits of being on the buying end. If they’re moving up in home price, the 5% discount you’re receiving on the purchase is worth more than the 5% price reduction on the sale of their less expensive, prior home.

So if you ask me whether the housing market in Cincinnati is “Good” or “Bad”, my response will simply and always be “Both”.

- Brett Keppler