Home improvement can be anything that increases the value of your house, including gardening and lawn work, remodeling and repair, adding new features or making structural changes. However, not all home improvements are equal. Some have a greater impact on resale while others may be more for your own enjoyment or convenience. It’s important to choose wisely to get the best return on your investment.
Whether you want to update the look of your kitchen or add a new bathroom, there are plenty of do-it-yourself projects that will give your house a fresher look without breaking the bank. Some examples are a simple paint job, laying a new tile floor or replacing a vanity. It’s also a good idea to install energy efficient lighting and appliances, as these can often help you save money on your utility bills.
Another popular project is adding an extra bedroom or bathroom to accommodate family members or guests. Increasing your living space can increase your home’s value and improve its functionality, particularly for families with children or multiple pets. Adding a laundry room, playroom or even an outdoor kitchen and barbecue can also be an excellent way to make your home more enjoyable and convenient for you and your guests.
Some home improvement projects have to be done for safety or health reasons, such as fixing a broken door handle or installing a smoke alarm. Deteriorating roofs, termite infestation or an electrical problem are problems that you can’t ignore, as they can lead to more expensive repairs and potential property loss.
The type of home improvement project you do will depend on your needs, the overall state of your home, and your personal preferences. Some people like to work on home renovation projects in phases, starting with the kitchen and then moving on to other rooms in their home. Others prefer to complete all of their projects at once. It’s also important to consider your budget before deciding on which projects to tackle.
According to a NerdWallet survey, most homeowners have the ability to fund most of their home improvement projects without tapping into savings or going into debt. In fact, 80% of respondents say they are able to stick to their budgets when it comes to home improvement projects.
Generally, the material cost for home improvement projects is tax-exempt, but it’s important to check with your local government and CPA before beginning any work. For example, in New York state you must pay sales tax to contractors unless you have documentation that the project qualifies as a capital improvement.
According to the Joint Center for Housing Studies of America (JCHS), housing market issues affecting both homeownership and refinancing will cause home improvement spending to decline in 2023. Nevertheless, the home improvement industry is still a strong economic force and is expected to remain so in the coming years. The JCHS anticipates total revenue in the home improvement industry to reach $485 billion by 2023.