Home improvement is a type of renovation work that improves the structure of a home, such as changing the roof, fixing a leaky faucet, or painting. It also includes upgrading the home interior, such as remodeling the kitchen or bathroom. Some home improvements can be done as DIY projects, but some require professional contractors. Home improvement is an important aspect of home ownership, and there are many ways to increase the value of your house.
The resale value of home improvements can vary greatly depending on the upgrades you make and how well they fit with your neighborhood. For example, if you live in a neighborhood with modest homes, installing a lavish hot tub or fountain may make your house stand out for the wrong reasons. Instead, opt for low-cost, high-impact upgrades that will appeal to the widest range of buyers.
Some home improvement projects may be tax-deductible, especially if they are considered capital improvements. Capital improvements are renovations that add to the value of your property, extend its useful life, or adapt it to new uses. In contrast, repairs are maintenance expenses that do not add to the cost basis of your home or extend its useful life.
Many people jump into home renovations without first having a plan or budget in place. This can lead to costly mistakes and expensive reworks down the road. A better approach is to save up a chunk of money before beginning any work, or consider using a credit card with a low interest rate (ideally, 0% for 12 months). This will allow you to pay off the debt once you sell your house.
