second, in the burbs, you might have 2 cars. in the city, you will likely have one. that saves 400/month conservatively. next, the amount you spend on gas will likely decrease. your property insurance will usually decrease. You property maintenance costs (yard, pool, etc) will also likely decrease.
the final answer is what was explained below. its a very different lifestyle and to those who like it, its worth 100s or more per month.
You've already seen this, but I will repeat it in a different way....The extra $400 per month would equate with the difference in R.E. Taxes in the burbs...it may even be less. Why not find a place which still has the tax abatement? Then you will really hit a home run!!!!!! Want info on communities, prices, etc? Just check out http://www.sendmyvalue.com and you'll get instant access to everything you need to know.
Good luck with all
ReMax Action Realty
I've lived in Philadelphia Center City for the past 10 years and I've enjoyed every minute of it. Yes, the wage tax is higher but the property taxes are much much lower. It actually balances out owning a home in the suburbs and having the property taxes you get there. Also, the conveniences of living in the city I'm willing to pay for that.
If it makes sense to consider the wage tax as paying for the convenience of living in Center City then take a closer look at making the move.
No obligations but check out my site. You get all the information just like I do on the MLS. The only company in the city that has this information at your fingertips. http://www.philadelphiahistoricalhomes.com
Also, check out some great information about the city and demographics here: http://centercityphila.org/docs/CCR10_Residential.pdf
If you have more questions please feel free to ask away! With interest rates still lower around 5.25% it's an interesting time to be looking for a home and some homes in Philadelphia have an average $1,000 per year taxes with a 10 year tax abatement that freezes that tax rate for 10 years.
but if you rather be on the outside of the city jenkintown abington delaware all these places are nice as well
As stated already, the most obvious financial advantage to living in Philadelphia versus the surrounding suburbs is the property tax rate. If you own a home in Philadelphia, property taxes are usually much lower in Philadelphia proper as opposed to the suburbs. That will probably be your only major financial advantage on paper.
Where else can you save? It depends. Do you work in the city? If so, you can probably save on your travel expense. Philadelphia has great public transportation, and if you live in a neighborhood or downtown (and work downtown), chances are that a car will not be necessary. This will save money on a car payment, insurance, gas, and overall maintenance. Also, Philadelphia is very walkable in many of its neighborhoods. This can save you money in a number of different ways.
If you look at major US cities nationwide, it is almost always more expensive to live in the actual city than it is to live outside of it. Why? Because cities typically offer more. They are most often the central business, entertainment, educational, and cultural districts of a particular region. Some people like this, and some don't. There are pros and cons. Basically, that's why you pay extra; for the amenities.
Please read these 2 posts that I wrote about urban living (they should help):
I hope all of this information helps you make a more informed decision. Best of luck!
Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
email@example.com Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-519-5490 Fax
Rates, 7 % sales tax, high wage tax, highest property transfer tax in country
At 2% to buy OR sell, 10% increase in property tax. All for the vibe of living in the city.
How are you? Thank you for your inquiry. The number one thing with Philly is that its property taxes are much lower than the surrounding suburban areas. And I'm not quite sure what do you mean by "$400 extra dollars per month out the window", so if you could elaborate a little bit more on that aspect, that'll be great.
And it really all comes down to what type of lifestyle does the consumer wants to live in (depending on WHERE you are planning to live at in the city). It's really convenient to travel between the Tri-State areas (Delaware, Philadelphia, and New Jersey) and it has a City Life in Downtown Philadelphia with the restaurants and shopping centers, as well as all the tourist attractions and plenty of site viewing.
And one of the differences in buying in Philadelphia than in the suburbs is the 1% EXTRA of Transfer Tax from the Purchase Price at settlement that buyer and seller have to pay on each side of their closing costs. In other words, the transfer tax is 1% for the State & 3% for the city, which equates to a total of 4% transfer tax and will typically be divided evenly between the buyer & seller as part of their closing costs. Therefore, it will be required for the buyer to pay 2% of the purchase price for transfer tax in his/her closing costs and seller will have to pay 2% as well for his/her side of the closing cost. Unlike the suburbs where each side would only need to pay 1% for their transfer taxes.
Hope that helps! If you have any other questions, please feel free to email or call me at (267) 918-1880.
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Phong Lam, CSM
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