If you’re thinking of moving to a new home this 2018, you must plan carefully to make sure it won’t hurt your finances. The recent tax reform will have varying effects on the housing economy of the country.
On December 20, 2017, the House passed the GOP tax bill. Two days later, President Donald Trump finally signed the said tax bill into law.
The changes brought by this new tax law are expected to hit high-cost areas the hardest while encouraging more people to reconsider less-expensive states. It will fuel the housing demand on low-cost areas which may help their respective economies.
The new tax law sets a new cap on the amount of state income and property taxes that homebuyers and owners can file and deduct.
While filers in high-cost counties and states won’t benefit much from the recent changes, many experts believe that this can bring increased demand in low-cost areas. It will encourage homeowners and future homebuyers to reconsider relocating.
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Ask an Expert Regarding these Changes
Will the recent tax changes affect you directly? This depends on several factors including your location, type of mortgage and how much property tax you pay.
To have a better understanding on the new tax law and its effects on homeownership, get in touch with a lender.
A lender is one of the best people who can discuss with you the advantages and disadvantages of the new law in case you’re planning to move.
Talk to a lender today free of obligation and get the information you need so you can plan out for your future as a homeowner.
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Fewer Movers in the US?
According to the recent Population Survey Annual Social and Economic Supplements (CPS ASEC), the country’s “Mover Rate” had set a new historic low. 11.2 percent of the present population aged one and over moved between 2015 to 2016.
Livability cites the top five reasons Americans relocate. Here’s the list, arranged in descending order:
Both with 15 percent – Were looking for a new or better house /apartment, and family reason
14 percent – relocated for some housing reason (other than affordability or wanting a new or better house/neighborhood)
10 percent – Desired to establish a household
9 percent – Moved due to a new employment or a job relocation.
If your reason(s) falls under any of the five, then you’re probably not alone in your desire to relocate. However, you will need to be ready and be sure about it.
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Before you start packing, you to make sure you’re well prepared.
Relocating will require that you have stable finances. If you’re moving because you can no longer afford your rent, at least make sure you have enough money to pay a rental deposit and the first one to two months worth of rent. More so if you decide to finally buy a home. You also have to have a stable job and a record of well-managed debts.
When relocating, you also have to make sure that you’re moving to a safe neighborhood. In addition to that, you must evaluate if moving will be worth it. Will it help you save money? Will it help you in your career? Is it what the family needs?
Before you make a final decision, make sure you’ve looked at all the different aspects that can make or break this move. Make sure that if you’re relocating, it’s for the best.