RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Report: Buying Beats Renting in More than Half of Markets

December 29, 2015 12:18 am

Buying a home remains more affordable than renting one in more than half of housing markets, according to a recent RealtyTrac® report. This comes as home prices appreciate and rent outpaces wages, says RealtyTrac Vice President Daren Blomquist.

“Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents," says Blomquist. "In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home."

Across all 504 counties analyzed by RealtyTrac, average wage earners will need to spend 37 percent of their income to pay rent each month. In contrast, average wage earners across all 504 counties will need to spend 38 percent of their income to pay housing costs—but that includes mortgage, taxes, insurance and mortgage insurance. (This assumes a 3 percent down payment on a median-priced home.)

RealtyTrac estimates rent for a three-bedroom property will increase an average of 3.5 percent in the New Year.

Source: RealtyTrac®

Published with permission from RISMedia.


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Moving Next Year? Standard Mileage Rate Announced

December 29, 2015 12:18 am

Moving in 2016? You may be able to deduct some of the expense. Beginning January 1, 2016, the optional standard moving mileage rate used to calculate the deductible cost will be 19 cents per mile driven, according to the IRS.

The mileage rate, based on variable costs, applies to moving via car, van, pickup or panel truck.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Other requirements for taxpayers to use the standard mileage rate for moving purposes are in Rev. Proc. 2010-51 (www.irs.gov/pub/irs-drop/rp-10-51.pdf).

Notice 2016-01 (www.irs.gov/pub/irs-drop/n-16-01.pdf) contains the standard mileage rates and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

Source: IRS.gov

Published with permission from RISMedia.


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