Home improvement is the process of making changes to improve or repair a home. These improvements may include remodeling, adding rooms or other structures, and landscaping. Some of these projects require professional help, but others can be done by the homeowner. There are many benefits to doing home improvements, including boosting the resale value of the house and increasing its functionality. Some home improvements can also be tax deductible.
According to the National Association of Realtors, homeowners are more satisfied with their homes after completing home renovation projects. The spike in home improvement during the pandemic may have been caused by a combination of factors, including higher energy costs and the desire to upgrade worn-out surfaces, finishes, and materials. The increase in satisfaction could also be attributed to a greater sense of security that comes from knowing that their upgraded homes are safe and sanitary.
Some home improvement projects are not a good idea for resale purposes, but they can be a great investment in the comfort and usability of a house. For example, a family with small children might want to add an extra bathroom for convenience. Other projects that can be a good investment are refinishing hardwood floors, installing a new kitchen sink and faucet, and painting the exterior of a house. These projects usually have a high return on investment and can be done quickly.
While some homeowners may choose to do home improvement projects on their own, it is important to hire professionals for any work that requires wiring or plumbing. It is also a good idea to ask friends and neighbors for recommendations. Moreover, homeowners should never get into debt to pay for home improvements. This is because they will be paying thousands of dollars for the project and even more in interest. Additionally, it is not a good idea to spend money on things that will not increase the resale value of the home, such as installing a fountain in the backyard or buying a hot tub.
There are a few home improvements that can be considered tax deductible, but it is important to consult a qualified accountant about what is eligible. For example, the first $250 of home improvement expenses is tax deductible, but the deduction phases out after that. Likewise, the cost of installing energy-efficient windows, heating and cooling equipment, and insulation can be deducted.
The biggest problem with home improvement is the risk of accidents or damage to valuables and property. Therefore, homeowners should always take measures to protect their belongings before beginning a project and keep a close eye on contractors for signs of negligence or recklessness. In addition, homeowners should read all contracts carefully and withhold final payment until the job is completed and all inspections and certificates of occupancy have been obtained. Finally, it is important to use caution with power tools and other hazardous materials in the home.