Hannah Breyley
I bet you have heard the term “historical charm” when talking to someone about St. Louis. Well they aren’t wrong; it is a living museum of architectural history, where designs are telling the stories of its past and offering unique opportunities for today’s homeowners. A good example of this is Lafayette Square which has Victorian houses that were connected by underground tunnels. It is believed they were used during Prohibition for secret gatherings. Along those same lines, Soulard, which is well known for its historic charm, has homes that were speakeasies at one point.
Something in St. Louis not many people may know about is a rare gem called Flounder Houses. These homes are unusually styled, have slanted roofs, and are found in very few US cities. Another unique type of home found here in St. Louis is the Second Empire Home. These homes can be recognized by their steep roofs and intricate detailing. St. Louis is seeing a median home price of around $250,000, making it remain an affordable market compared to other larger metro areas. This helps make these historic homes an attractive choice for home buyers looking to relocate to the St. Louis area.
For home owners and buyers, discovering homes like these with a secret past or unique structure adds value and character. I did some research once for a client that was interested in a historical home. The interesting part is there are tax credits available. According to stlouis-mo.gov, in order to qualify for these tax credits, a property must be:
- individually listed on the National Register
- be a contributing resource within a National Register District
- be within a Certified Local Historic District. and a contributing resource to it
- have a total project cost of at least 50% of the basis of the property.
They also state that owners of income generating properties, whether commercial or residential rental units, can qualify for a federal tax credit equal to 20% of their rehabilitation costs. In order for them to be eligible, the rehab has to be considered “substantial,” meaning a minimum investment is required. The amount spent must be at least $5,000 or the property’s adjusted basis, whichever is greater, within a 24-month test period (or up to 60 months if the rehab is phased).
St. Louis does have a competitive market, and home sellers and buyers can use these features to their advantage. Keeping a focus on historic homes in St. Louis not only keeps the city’s charm alive but can also earn you valuable tax credits, making preservation both meaningful and financially rewarding!