Development creeping into sharswood?

[eldondre]

Quadplex Will Spruce Up a Rough Brewerytown Corner | NakedPhilly

[JH1234]

Plus an ongoing rehab of a 3-story rowhouse on N. College and another proposed 10-unitter on 1228-32 N. 25th and there's suddenly lots happening "beyond the wall."

[John Goodman]

whats the idea here... temple students?

what sort of rents do guys realistically think they're gonna get?

[JH1234]

whats the idea here... temple students?

what sort of rents do guys realistically think they're gonna get?

Can't say what the developers' goals are, but there are what appear to be post-college 20-somethings sprinkled throughout the immediate area. I'd guess they'll draw more of the same. Wouldn't know about rents, but I bet MM could make a decent estimate.

[MM Partners]

Can't say what the developers' goals are, but there are what appear to be post-college 20-somethings sprinkled throughout the immediate area. I'd guess they'll draw more of the same. Wouldn't know about rents, but I bet MM could make a decent estimate.

Glad to see the Sharswood border getting some TLC. Only a relatively small percentage of our tenants are Temple students, but those who do live with us are seeking less expensive rents and bigger, better quality spaces than are available on campus. We also have a few Penn and Drexel expats from campus.

[gideon]

i'm noticing a heck-of-a lot of building and rehabbing in many areas of the city. a few construction company owners i know have been hiring new project managers. i wonder how this avi is going to impact development and existing areas.

[JakeL]

i'm noticing a heck-of-a lot of building and rehabbing in many areas of the city. a few construction company owners i know have been hiring new project managers. i wonder how this avi is going to impact development and existing areas.

IMHO, I think AVI is a major win for Brewerytown. Looking at the AVI map, the average Fairmount tax rate is now ~$4k, with some as high as $7k. Even Francisville saw a major increase in taxes, whereas Brewerytown taxes either stayed the same or decreased. The average in Brewerytown seems to be about $500 a year.

If you're looking to buy a home, you're looking at $300 more a month in taxes alone to live in Fairmount.

If last year's average PITI (property, taxes, interest, insurance) price for a home in Brewerytown was $600 a month and Fairmount's was $1,700, now the price is looking like $600 vs $2,000. As the disparity increases, the more people are going to be looking to Brewerytown as an affordable option. The same will happen with renters, as most landlords will pass the rental cost onto tenants, especially given the strong rental market right now.

Furthermore, if the homestead exemption passes, this will make all the stronger case for buying in Brewerytown. Many homes in Brewerytown are assessed at $30,000 or less, meaning that some property owners wouldn't even pay real estate taxes, and who doesn't want to have a tax-free home?

[eldondre]

IMHO, I think AVI is a major win for Brewerytown. Looking at the AVI map, the average Fairmount tax rate is now ~$4k, with some as high as $7k. Even Francisville saw a major increase in taxes, whereas Brewerytown taxes either stayed the same or decreased. The average in Brewerytown seems to be about $500 a year.

If you're looking to buy a home, you're looking at $300 more a month in taxes alone to live in Fairmount.

If last year's average PITI (property, taxes, interest, insurance) price for a home in Brewerytown was $600 a month and Fairmount's was $1,700, now the price is looking like $600 vs $2,000. As the disparity increases, the more people are going to be looking to Brewerytown as an affordable option. The same will happen with renters, as most landlords will pass the rental cost onto tenants, especially given the strong rental market right now.

Furthermore, if the homestead exemption passes, this will make all the stronger case for buying in Brewerytown. Many homes in Brewerytown are assessed at $30,000 or less, meaning that some property owners wouldn't even pay real estate taxes, and who doesn't want to have a tax-free home?

with AVI the assessments shoudl rise more quickly thus eliminating any chance of a tax free home in a nice neighborhood. that being said, it still should support a narrowing of the gap though fairmount will likely remain move expensive due to its location. the big downside is that it cuts property taxes for slumlords like gravely who own property in brewerytown's most valuable section. I'd also point out concerning sharswood, francisville is building out quickly...I'd guess that some movement on girard as well as ridge is imminent.

[love to travel]

[Furthermore, if the homestead exemption passes, this will make all the stronger case for buying in Brewerytown. Many homes in Brewerytown are assessed at $30,000 or less, meaning that some property owners wouldn't even pay real estate taxes, and who doesn't want to have a tax-free home?[/QUOTE]

homestead exemption is a joke . You only recieve it if tax rate is above 1.37% are tax rate will be 1.25%

[gideon]

The house I rent right now is seeing a 20% plus increase while the house I bought is going up 1%.

But there is an interesting point that this could make movement happen faster, re-populating parts of the city which are still relatively low population.

I wonder if this will kick off more rehabing or less

[the mule]

IMHO, I think AVI is a major win for Brewerytown. Looking at the AVI map, the average Fairmount tax rate is now ~$4k, with some as high as $7k. Even Francisville saw a major increase in taxes, whereas Brewerytown taxes either stayed the same or decreased. The average in Brewerytown seems to be about $500 a year.

If you're looking to buy a home, you're looking at $300 more a month in taxes alone to live in Fairmount.

If last year's average PITI (property, taxes, interest, insurance) price for a home in Brewerytown was $600 a month and Fairmount's was $1,700, now the price is looking like $600 vs $2,000. As the disparity increases, the more people are going to be looking to Brewerytown as an affordable option. The same will happen with renters, as most landlords will pass the rental cost onto tenants, especially given the strong rental market right now.

Furthermore, if the homestead exemption passes, this will make all the stronger case for buying in Brewerytown. Many homes in Brewerytown are assessed at $30,000 or less, meaning that some property owners wouldn't even pay real estate taxes, and who doesn't want to have a tax-free home?

Possibly to some extent, and I'd love to see that, but I think it will drive more development in Francisville before it really gets to Brewerytown. There's already momentum in Francisville and plenty of vacant lots there which are still advantageously assessed when combined with the 10yr tax abatement. Personally I'd rather live in Brewerytown, but its progress so far has been hard fought by a dedicated few.

[the mule]

i'm noticing a heck-of-a lot of building and rehabbing in many areas of the city. a few construction company owners i know have been hiring new project managers. i wonder how this avi is going to impact development and existing areas.

It's so hard to predict that, but it won't be good, no matter what. Intuitively it should cause downward pressure on prices where taxes have shot up. By how much remains to be seen. This is still a year off from being implemented and there are a whole lot of questions to be answered. Best case scenario is that it merely slows down the price appreciation in rapidly developing neighborhoods and prices either stagnate or rise less than they would have otherwise.

Land is largely underassessed, so new construction isn't likely to be directly impacted too much. In fact, with the 10 year tax abatement new construction will have a major competitive advantage over rehabs and existing homes which will have a higher unabated base value.

The biggest wild card is how many people really decide to put their houses up for sale because of their tax bill. Lots of people are screaming bloody murder saying the higher taxes will proportionally reduce their home values, but if all those people decide to sell at once it will only exacerbate the problem.

I just don't see this going through with such high spikes as planned. There are too many political careers at stake.

[raider.adam]

Possibly to some extent, and I'd love to see that, but I think it will drive more development in Francisville before it really gets to Brewerytown. There's already momentum in Francisville and plenty of vacant lots there which are still advantageously assessed when combined with the 10yr tax abatement. Personally I'd rather live in Brewerytown, but its progress so far has been hard fought by a dedicated few.

I don't think it will necessarily drive development because development pays no property taxes (abatement). What it will likely do is draw new interest in neighborhoods with already existing housing stock that may be more of a "fixer upper" category, not a full rehab.

That would be my guess.