What Is Home Improvement?
Home improvement involves the repair, remodeling or altering of residential property and the making of additions thereto. This includes, but is not limited to, the construction, installation, replacement or improvement of driveways, sidewalks, swimming pools, terraces, patios, landscaping, fences, porches and garages.
Home improvements can add to the value of your home and help you get more for it when you sell. They also may save you money in the long run by reducing energy costs or lowering your utility bills.
It’s important to consider the cost of improvements versus the cost of repairs before deciding what to do with your home. Generally, capital improvements yield tax benefits at the time of sale.
Make sure to check with your state and CPA before you make any major changes to your home. The Department of Revenue will be able to tell you whether or not your home improvements qualify for tax credits, and if so, what the credit is for.
You may be able to borrow against your home equity, which can be a good way to pay for renovations. However, the amount you can borrow must be 85% of your home’s value, and it is typically paid back over 5-30 years via fixed monthly payments.
Regardless of the type of work you plan to do, it’s best to hire a licensed contractor. Choosing the right contractor can mean the difference between a successful project and one that fails. Be sure to compare prices, experience, reputation and more before hiring a contractor.