Home improvement is anything that enhances the value of your home or makes it more functional. It could include renovating your kitchen, adding a bathroom, building an extension or installing a patio. Home improvements may also include painting, landscaping and other maintenance work.
According to the National Association of Realtors, remodeling is a top activity among homeowners. It can make your house more valuable, more functional, and more comfortable to live in. However, not all remodeling projects are created equal. Some improve your home’s resale value while others offer a poor return on investment. It’s important to research the project and contractor before hiring someone to complete it.
Rock-bottom interest rates are making it easier for many people to borrow money to pay for home improvements. A recent NerdWallet survey found that almost three-quarters of homeowners plan to hire contractors for at least one home improvement this year. In addition, homeowner confidence is at a seven-year high. The types of home improvements surging the most this year are outdoor-related: a threefold increase in deck construction, and a 144% rise in fence construction.
Depending on the type of renovation, home improvements can be tax-deductible. However, you should consult with a tax professional before making any claims on your taxes. For example, if you’re renovating your kitchen, you can deduct the cost of new cabinets and appliances. However, if you’re simply redecorating, only the labor costs are tax-deductible.
When it comes to home improvements, it is generally a good idea to focus on energy efficiency upgrades. This is because they can save you money in the long run by reducing your utility bills. These upgrades can include new windows, doors and insulation.
The best part is that these upgrades don’t necessarily require a huge investment. You can do things like upgrade your toilets and showers to more efficient models, replace old windows and doors, install new insulation, and so on.
Many homeowners are turning to home improvement projects to add curb appeal, boost the value of their homes, and just enjoy living in them more. In fact, the American Housing Survey finds that home remodelers spent an average of $8,000 on their projects in 2017! Fortunately, homeowners can afford most projects with cash from savings and plenty of financing options are available.
If you’re planning to sell your home in the future, it might be worth the investment to make some energy-saving renovations that can help you get a higher price when you do. But, before spending your hard-earned money, always discuss your plans with a real estate agent or contractor. They’ll be able to tell you which projects will bring the biggest returns. Then you can plan your budget accordingly. In the end, it’s all about getting the most out of your home’s value while you still own it.