I have spent the last few weeks helping a California family find a rental home as part of a job transfer. I even did my first video showing (via a Google Hangout)! During this process I have asked…more than once…does renting still make sense?
In this situation the answer is yes – mainly because they don’t know the geography well and they are also not sure what the travel demands of this new job will be. They wanted something “in the middle of the suburbs” that would allow them maximum flexibility while still adhering to their budget.
In 2017 the President signed sweeping changes to the tax law. While the final determination on whether the changes were good are bad won’t come for a few years, one thing we know right away is that for some it made renting a home more palatable. That is because the tax exemption for state and local taxes (known as the SALT deduction) is capped at $10,000 per year ($20,000 filing jointly). In some parts of the Philadelphia suburbs the taxes exceed this amount.
While the National Association of REALTORS is working hard to advocate for an unlimited SALT, we continue to find people willing to rent.
If you want to know more about whether renting in Montgomery or Bucks County makes sense for you – that’s why I’m here…ask me!