1 – Tax Advantage: Without going into too much detail there is a tax write-off for your mortgage interest, property tax, and other various home payments surrounding the financing of your home. This write-off will help lower your income tax you owe to the federal government. For more information on the tax benefits for homeowners check out: http://www.bankrate.com/brm/itax/news/20030207a1.asp

If you’re renting the tax savings goes to your landlord.

2 – Home Appreciation: In strong real estate markets, homes appreciate a certain percentage each year. For example, if you buy a condo for $300,000 and put 10% down ($30,000); and your home appreciates 3%, that’s a gain of $9,000. So you’ve gained $9,000 on a $30,000 investment – that’s a 30% return on your investment.

If you’re renting you don’t see the appreciation gains because you don’t own your home.

3 – Building Equity: While home appreciation has to do with the general market conditions, home equity has to do with your individual investment. As you pay your mortgage, you are building equity (i.e. ownership) in your home. Further, any home improvements you make build equity by boosting your home’s value. For example, an improvement such as replacing carpet with hardwood floors increases the equity because the hardwood is much more desirable and increases the value of your home.

If you’re renting you’re paying someone else’s mortgage and not building equity for yourself.

If you’re contemplating making that leap into home ownership feel free to contact me with any questions.

A few of the other topics in the series will include: Is what is said in the media pertinent to me as a first time buyer? The Steps to take before I Decide to Buy? Questions to ask my Real Estate Agent? To be added to my monthly newsletter and get updates on this series go to my website at www.neetiarndt.com.

Mitch Schuman
Real Living Helios Realty

Summer festivals are one of the best parts of living in Chicago. Each year, various organizations and neighborhood communities across Chicago come together to put on outdoor street fairs to show off art, food, music, and other local culture.

Time Out Chicago's online edition has a great reference for all the Chicago summer festivals which will give you all the details on dates, times, and descriptions of the festivals.

Everyone has their favorite festivals of the summer, here is a list of favorites from the agents at Real Living Helios Realty -

1) Taste of Randolph
2) Old Town Art Fair
3) Bucktown Art Festival
4) Summer Dance
5) Taste of Lincoln Ave
6) Blues Festival
7) Sheffield Garden Walk
8) Old Town School Of Folk Music Festival
9) Old St. Pat’s World’s Largest Block Party
10) Retro on Roscoe

JM

www.mlssearchchicago.com - to search the MLS to find homes
www.neighborhooddirectorychicago.com - to learn about chicago neighborhoods

I'm continuing my monthly summary of the broker's opens I attended. Today's blog will let you know a little more about a single family homes on Chicago's northside.   The prices ranged from 1,699,000 up to 2,500,000.

Once again:  Before I begin, I will ask you the question: What condo building, investment property, or single family are you intersted?  Send me an email about the property you are interested in knowing more about and the next broker's open I will attend and report back :)

The Properties:  1510 W Byron, 3720 N Leavitt, and 3156 N Pine Grove.

 3720 N Leavitt:  This was a nice home with unique quality upgrades.  It is priced at 1,750,000.   I was able to view this home and found a custom 5000 SQ FT home on a wide lot.  The living, dining, formal dining boasted quarter sawn oak & hand scraped walnut floors.  Lava stone kitchen countertops, oversized kitchen w/ sep. breakfast room.  The great room in this home has a custom ivory floor to ceiling mantle.  It is a 4 BDRM/3THS.  Wine room, exercise area w/ shower, and full family room with wet bar. 

What more could you want besides a slightly lower price?  Curb appeal, Bell school district, unique quality features, wonderful natural light, garage w/ deck with outdoor fireplace.    A definite home on the list if you are looking within the Bell school district. 

1510 W Byron:  Absolutely stunning new construction single family home in Blaine school district! Impeccable finishes throughout and attention to detail including tiger wood hardwood floors. Chef’s kitchen with commercial grade apps. Central vac, radiant heat in LL and all walkways and garage. Home sits on deep 150 foot lot and includes a huge backyard.

  3156 N Pine Grove:   Priced at 2,195,000.  This home is spacious, recently renovated Belmont Harbor praire style on an oversized lot w/ 6 bedrms, bright living-dining combo and open gourmet kitchen w/ great room.  The lower level rec room has 8 1/2 - 9ft ceilings.  It does have outdoor space / deck plus a 2-car garage.  This private "no outlet" city street allows for a slower paced environment.  The home has been renovated to today's standard upgraded finishes.  There are three smaller rooms and one large master bedroom all on one level.  There are two bedroom just off the family room on the lower level.  The finishes are not quite up to par with similar size homes of a new construction nature.   Of course, this home is only a couple blocks from the lake and steps away from all the fun Chicago has to offer.

How your taxes are assessed

Generally, property-tax bills are calculated by multiplying the assessed value of a home or condo by the local tax rate. Some towns may assess homes at full market value, while others assess properties at a percentage of market value. In Cook County homes are assessed at 16% of its estimated property value. The overall amount of real estate taxes to be collected in your community is determined by all local governments providing services in your community, such as your municipality, school, park and library districts. That is why it is important to be aware of any proposed increases in spending by your local governments.

What should you do?

- Use online real-estate sites like PropertyShark.com to research what neighbors with similar homes are paying.

- Visit your local assessor’s office to find out that the information they have for your home is correct (square footage, bedrooms, bathrooms, etc)

- File an appeal. You’ll need evidence to back up your case to put together a file of public records, records for other homes, etc. Consult a reputable real estate attorney to assist.

James Weber
Real Living Helios Realty
jweb@reallivinghelios.com
http://www.chicagoagentblog.com/
312-224-9109

If you want to learn more about short sales or upcoming classes, please contact me using the info below!

Deborah Hutchinson
Real Living Helios Realty
dhut@reallivinghelios.com
http://www.chicagoagentblog.com/

Helios Realty and Development

These persons 55-65 and up are the largest group of property owners in the U.S. according to the Census Bureau www.census.gov. Also, those 65 and older have approximately $2 trillion in home equity. With 55 million older Americans searching for homes by the year 2020, the American Association of Retired Persons (AARP) estimates that 83% of seniors already own their own homes and nearly 8 million of them will move residences in the next two years. Those who choose to stay in a familiar setting and to which they have become accustomed will most likely purchase a second or vacation home.

Investing in retirement communities isn’t just about purchasing property. You will need to have a clear understanding of the different types of senior properties, whether you want to run the senior living facility or obtain it and allow someone to run it that is qualified to handle the daily operations.

Independent living communities are much the same as any other multi-unit complex. They can offer special services such as meals, housekeeping, transportation and workout facilities. For these amenities you can add about 10-15 percent to traditional multi-family rent, according to LoopNet, a commercial real estate resource. These properties make up the smallest percentage of the market with 10% share.

The larger chunk of the market is owned by assisted living communities. The difference is that this type offers more services such as laundry, arranged activities, some medical attention and assistance for those with less mobility.

The average cost for a private room in 2006 was $2600 and has already scaled to $2700 in 2007. These costs fluctuate by the level of service they receive and can sometimes reach up to $4000 per month for those needing advanced care.

The trend is to make these facilities more like home by providing more space so residents can get out more. This has netted larger profits and is a smart move for new investors in the senior living community who want to increase the demand for their properties.

Skilled nursing facilities provide around the clock care for older seniors who need intensive medical attention. This type currently holds about a third of the market. Private rooms tend to average around $6000 per month. Investors are warned to not make this your first attempt into the senior living market unless you have a background in healthcare. This endeavor would be more suited for a seasoned investor or partners with some healthcare knowledge.

Continuing care communities offer a blended level of services combining services from all three of the other types of communities. The costs vary by degree of services.

Finally, the “baby boomer” generation prefers to be referred to as “Active Adults” and have begun to flee to communities that represent a range of upgraded activities. They are sitting on top of trillions in equity generated by swollen home values. They will be looking for new age amenities such as high ceilings, granite counter tops, spacious maintenance-free units with Pilates and yoga classes as opposed to shuffle board. These communities accept residents that are 55 years and older.

Senior living is so popular that NAR is offering a designation to agents that specialize in retirement communities. As an investor, knowing that this market is full of potential consumers and other investors are standing by to tap into the growing demand, you should find a property that stands out from the others with amenities such as this. As a savvy investor with healthy planning, senior housing will make a smart addition to your portfolio. Adapted from Real Profits 2008

Antoinette 'Toi' Rayburn
aray@reallivinghelios.com
www.ToiRayburn.com
ph: 312-224-9090

Reuse Makes Good Green Sense
Recycled-content furniture is an integral part of the ecological picture because it makes great use of the unfathomable amount of waste we create each day on our little planet. Don't discard material because it's not natural; it's already here, transformed from its original, natural state to the plastic (or whatever) it is now. Keeping it in the loop and reusing it is the best we can do in our existing situation. We've become very good at recycling, but if we don't actually use recycled materials, they end up right back where we've always sent them, piled up at the dump or floating at sea.

Heirloom antiques are also good ecological choices-longevity is an important aspect of being green. Because antiques have been well cared for, valued and used through the generations, acquiring an heirloom is an excellent method of recycling. Instead of making inexpensive purchases, consider saving up for a special piece of furniture whose quality and beauty will be valued for generations to come.

Look for Sustainable, Nontoxic New Materials
If you buy new wood furniture, ask whether the wood is certified by the Forest Stewardship Council, which means the wood was sustainably harvested and has a documented chain of control. Other elements to consider for their health and environmental impacts include the finish on wood, adhesives, batting, upholstery fabric, fire retardants and coatings for waterproofing and soiling prevention. It may seem that there is more to bear in mind than can possibly be addressed, but most companies that are eco- or green-minded have addressed many of these issues-at least in their thinking, if not their products-and can speak intelligently with you about them.

Consider the Production Chain
Be aware, as well, that the decisions you make affect the people who manufacture these products and materials. Synthetic materials and adhesives that may be relatively benign by the time they make it to your home can be quite toxic during the manufacturing process or cultivation. For example, conventionally grown cotton represents only 6 to 10 percent of the world's crops but uses 35 to 40 percent of the world's pesticides, herbicides and fertilizers. The cotton in most clothing is produced this way, and the same is true of linens, bedding and upholstery fabric.

As consumers demand and purchase more organically grown and untreated cotton and other fibers, destructive agricultural practices will gradually shift to sustainable ones. And with greater consumer demand, the cost of sustainably grown fibers will decline. This is better for the planet, the farm workers, and you and your family.

Incorporating environmentally sound and healthful furnishings into your home is much like eating a healthy diet: if pieces are organic, untreated, made of natural materials, and use minimal glues or natural ones, they're better for you, the planet and the people who created them.

As most of you know, I'm working as co-manager on 9 w Erie.  This green building is slated to begin delivery from April to July of 2009.

Our new developer incentive is for the 2 bed plus den units.  The 06 tier has a great floorplan which is approximately 1500 sqft.  For the next four units under contract in the 06 tier, the buyer receives free garage parking. 

A summary of the new development:

• Modern architecture meets modern responsibility.
  9 West Erie, an eco-friendly building pursuing LEED Certification, will implement earth-friendly design and construction, recycled materials, as well as energy efficient appliances and building systems
• Live. Work. Dine. Play. Shop. Explore.
  9 West Erie places you squarely in the middle of downtown Chicago with easy access to the Loop, Magnificent Mile, Streeterville, the Gold Coast and major transportation options. River North is a hip, desirable neighborhood that's alive with possibility.
• Green roof
  . Design of the roof, with maintenance-free plantings, minimizes heat island effects, while greatly insulating the building and reducing storm water runoff

• Energy efficiency
  . Energy Star™ Appliances are standard in all homes
  . Ultra energy efficient building exterior envelope includes double pane insulated windows with screens
  . High efficiency central HVAC system with gas-fired hot water heating system and air conditioning for reduced monthly energy bills
  . Low energy lighting used throughout building
  . 100 amp electrical with individually metered circuit-breaker panels so owners can manage electricity usage
  . Reduced carbon footprint compared to conventionally built condo buildings

• Water conservation
  . Reduced water usage is achieved through water conserving plumbing fixtures
  . Dual flush toilets
  . Front loading washers (available upgrade)

• Recycling
  . Recycling room is on the first floor with trash chutes conveniently located on each floor
  . Over 75% of all debris created during construction will be recycled
  . Building structure, enclosure and finishes shall consist of 50% recycled materials, helping preserve natural resources

• Transportation
  . Bicycle storage room to encourage pedal power
  . Building is located in an area with multiple mass transit options to reduce reliance on automobiles

Lynn Reidl
lrei@reallivinghelios.com
http://www.lynnreidl.com/
Phone: 773/343-8879