Home improvement is a type of renovation or remodeling that improves the function and appearance of residential property. It can also increase the resale value of the home. Home improvement includes work such as painting, resurfacing of pavement and driveways, putting in a new fence, or building an addition. In general, the material cost of home improvements is tax-exempt if you have the proper documentation from your contractor. In the state of New York, you can obtain this document by filing with the department of taxation and finance.
The most popular home improvement projects are sparkling bathroom overhauls, followed by kitchen and basement remodels. However, not all homeowners recoup the full cost of their renovations. In fact, the average homeowner only gets a 60% return on their investments.
While resale is a factor when considering home improvements, it should not be the sole driving force. Your comfort and enjoyment of your home should come first. Otherwise, you might end up with a showplace that doesn’t feel like home and may eventually need to sell it for a loss.
With home prices on the rise and a limited supply of homes for sale, many homeowners are choosing to stay put rather than try to buy a bigger or nicer house. During this time of economic uncertainty, it’s also easier to pay cash for home improvements instead of financing them. This is because interest rates remain low. However, this trend is expected to change as rates start to climb.