Home Improvement – What You Need to Know
Home improvement can include many different projects, from small repairs and upgrades to major remodels. These can be done for personal preference and comfort, to make a home bigger or as a means of saving energy.
The average American homeowner spent a half-trillion dollars on home improvement projects over the past decade, and spending is likely to rise even more in the future. Despite a potential recession and inflation, more than 75% of homeowners say they plan to take on home improvement projects in 2022, according to a new survey by Nationwide.
Most homeowners do not plan to sell their homes in the next two years, so they aren’t targeting buyers with these projects. Instead, 54% say they want their homes to be more comfortable and 52% are seeking a sense of satisfaction.
Before any major renovations, it’s a good idea to consult a realtor or an interior designer. These professionals can show you ways to fix up your home without breaking the bank.
Investing in mid-range upgrades can pay off big for your home’s resale value. Upgrades that don’t have a high resale value, such as converting garages, can actually hurt your home’s chances of selling.
Tax-wise, money you spend on home improvements is considered capital and adds to your cost basis, which will help when you eventually sell the house. Certain energy-saving improvements also can be eligible for tax credits.
When planning for a home improvement project, it’s a good idea to model it out on a floorplanner so you can see what your new space will look like. This will give you a sense of how much the project will cost and how long it might take, as well as help you avoid costly design mistakes.