Home improvement is a term used for any type of renovation that improves the overall look and feel of a house. This type of work includes anything from painting and resurfacing your driveway to adding a pool or porch. It also extends to the interior of your home, such as new kitchen cabinets or a new bathroom vanity. Some home improvements can increase your property value and make your house more appealing, while others may not. You should always consult with a real estate agent in your area to determine what types of remodeling projects will add the most value to your home.
Homeowners can get carried away when it comes to renovating their homes, especially if they are planning to sell them at some point in the future. However, many homeowners will find that they do not get their money’s worth from some of their renovation projects. Some of the most popular projects include sparkling bathroom overhauls, basement and kitchen renovations. However, according to the Contractor Growth Network, these improvements only deliver a 60% return on investment.
Other home improvements that tend to lose their luster include extravagant outdoor additions, such as hot tubs and fountains. High-end upgrades such as these can be a turnoff for buyers, who want to stay within the price range of neighboring properties.
The biggest mistake homeowners can make is taking on too much debt to finance their renovations. This is a sure way to deter potential homebuyers. Additionally, it can end up costing you more in the long run when it comes time to sell your home. In general, it is wise to stick with mid-range upgrades that will appeal to a wide audience of potential buyers.
A master suite is another home improvement that will provide a solid return on your investment. It will also create a sense of luxury in your home. However, if you are planning to live in your home for a long time, then it may be more beneficial to choose a different type of remodel, such as a patio or backyard addition. In the state of New York, you will be charged sales tax on all labor and materials unless you can prove that your project is a capital improvement. You can get this documentation by submitting a Form ST-124, Certificate of Capital Improvement, to the Department of Taxation and Finance. You will then be exempt from paying any additional taxes on the construction costs for that particular renovation. This will save you a significant amount of money in the long run. Also, keep in mind that you will need to maintain records of any improvements for a period of three years. The documents that you keep will be useful when you need to reevaluate your property tax assessment in the future.