Qualifying to purchase a home is difficult; not everyone wants to follow this route. Some people prefer the option of renting a property. Renting offers the opportunity for more flexibility. There is also a limit on the applicable maintenance obligations.
But with rental property, you may be required to obtain permission before any changes or amendments are made. Pet ownership may also be based on permission. Moving house when you are renting is a fair bit easier than when you are tied down with home ownership.
What factors qualify to make a house a home?
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A majority of these decisions can be based on the personal circumstances of the individual during that specific time of life. Renting a property may afford the individual the opportunity to streamline expenses.
Purchasing a house is a huge expense and may require a huge sum of money for an upfront payment. These costs are considerably lower when renting. In a lot of scenarios, the deposit is repaid when the individual moves.
Flexibility is key in these situations. When a rental agreement expires, the option exists to either extend it for a further period or to give notice and move to a new place. In some scenarios, the option exists to convert the lease agreement to a month-to-month agreement. Maintenance is much less of a headache with a rental option. Routine maintenance is usually covered by the landlord, relieving the financial burden.
A much-needed check benefit for one group of residents
The state of Pennsylvania has created a rent or property tax rebate program. The focus group of this program is renters and homeowners aged 65 years and older. Disabled individuals aged 18 and older, as well as widows and widowers 50 years and older, may also be eligible. These individuals are required to conform to certain income requirements to qualify for the program.
According to the Pennsylvania Department of Revenue, funding for this program is obtained from the state’s gambling and lottery operations. This crucial initiative is important for the majority of older adults who are suffering from economic challenges. The application period for this program is set until 30 June. Applications can be submitted either in person, via mail, or by utilising the online system.
Jason Kavulich, Pennsylvania Secretary of Aging, has encouraged citizens to apply to this program:
Affordable housing continues to be a central concern for our older adults. This program allows more people to remain in their homes and remain active members of their communities.”
What value does this benefit for homeowners in Pennsylvania hold?
Apart from the eligibility criteria, an income limit also applies. With the household income limit set to $46,520 or less per year, Pennsylvania residents must also take note of the age guidelines:
- Disabled individuals should be 18 years of age or older.
- Seniors should be 65 years of age or older.
- Widows and widowers must be aged 50 years or older.
Half of the individual’s Social Security income is excluded. An estate, spouse, or personal representative may file a rebate claim for an individual who passed away during 2024.
This individual should have lived for at least one day during the claim year and also have conformed to all the other eligibility criteria. Rebate payments range from $380 to $1,000. These are based on the income earned by the individual in 2024:
- Income of $0 – $8,270
- Maximum rebate $1,000
- Income of $8,271 – $15,510
- Maximum rebate of $770
- Income of $15,511 – $18,610
- Maximum rebate of $460
- Income of $18,611 – $46,520
- Maximum rebate of $380
The impact that this program has brought has been significant. During the previous year, 522,434 rebates were distributed to a total amount of $319,2 million. This is a massive increase from the 2022 figures. During this year, only 405,493 rebates were received, with a total amount of $192 million being distributed.
These increases can be attributed to Governor Shapiro’s drive for expansion of the program. Currently applications received stand at approximately 400,000, quite a large number.
