Home improvement is a big business. In fact, it represents a significant chunk of the global economy. It includes everything from home repair to remodeling. A number of businesses are involved in the industry, including tradespeople, contractors, and suppliers. Whether you are doing your own home improvements or hiring a professional, it’s a good idea to do some research. The following information can help you decide what’s worth your money.
First, you should know that home improvements can be tax-deductible. You may be able to claim up to 85% of your home’s value. Depending on your state, you may be able to deduct the cost of materials, labor, and taxes. However, some home improvements are only tax-deductible in the year you sell your home.
Another reason to do a home improvement project is that it can add to the value of your home. Renovations that include the addition of new windows, siding, decks, or a garage are a good way to add to your resale value. If your resale will be less than a year away, you may want to consider a home equity loan. But you need to be careful, as these loans are generally more expensive than personal loans. Also, they require a longer underwriting process.
While you’re planning your renovations, make sure you check with your CPA to see which improvements will be most beneficial to your finances. You don’t want to spend thousands of dollars on a new kitchen or bathroom only to find out it won’t add much to the resale value of your home.
Another way to boost the value of your home is to upgrade the lighting. This is especially true in high-traffic areas, such as the kitchen, living room, or bedroom. Installing LED light bulbs in these rooms can significantly improve the way your house looks and functions. Similarly, putting in security devices like cameras and alarm systems can also be a worthwhile investment.
Lastly, be sure to check your contractor’s credentials. Make sure they are insured and have a good track record with the Better Business Bureau. For instance, Greg Home Improvement, based in New Jersey, has a clean record with both.
As with any home improvement project, there are risks involved. For example, you need to be cautious about the quality of the work, the safety of your family, and any potential hazards. Whether you are doing a large or small remodel, you should always take the time to research and check the credentials of your contractor.
Luckily, the home improvement industry is booming. According to the American Institute of Architects, the number of architects in the US increased by 8% between 2006 and 2012. Likewise, the number of people working in the home improvement sector increased by about 25%. And with more and more companies entering the market, competition is increasing.
So what are the best options for homeowners who are looking to increase the value of their homes?