Tom Cruise is reportedly planning to buy a $1.5 million (GBP830,000) home in his fiancee Katie Holmes' hometown of Toledo, Ohio.

The Hollywood couple recently announced they're expecting their first child together, and while sources speculate over when they will wed, Toledo locals are preparing for celebrity neighbours.

DALE BRUHL, who owns the nine-bedroom mansion which reportedly caught their attention, says, "The neighbours saw limousines in front of the house when (real estate agents) were showing it. I'm sure it's them. Her mother lives in the area."

Cruise's representative has hit out at the reports, stating, "Everyone wants Tom to buy a house in their neighbourhood, bit it's not true."

But residents of Toledo are still holding out hope - a store window in the centre of town already reads, "We gift-wrap baby gifts for Tom and Katie's baby!"