A proposed Philadelphia property tax would drive rent up
As a young professional career, you may find it easier to submit monthly payments to a landlord, rather than purchasing real estate in Philadelphia, PA, outright. However, many local professionals are saying the implementation of Mayor Michael Nutter's Actual Value Initiative (AVI) policy would completely alter rent values in the City of Brotherly Love. In fact, tenant-advocacy groups warn renters in neighborhoods where tax bills are shooting up should expect to see higher rents in the future, The Inquirer reports.
"Clearly, any tax overhaul is going to affect tenants indirectly," said Phil Lord, executive director of the Tenant Union Representative Network, to the news source. "The challenge is how to deal with the long-term tenant or low-income tenant."
When AVI does go into effect, you might want to consider investing in property, rather than dealing with increases in rent, especially if you live in affordable neighborhoods like Bella Vista. Currently, the average real esate sale price in the community according to ZipDataMaps is $314,249, which is still a significant portion of money, but may prove to appreciate in value as the Philadelphia market continues to climb back to pre-recession norms.
You may find owning a home to be more worthwhile than mailing in a monthly check for a property you don't actually own.