Home improvement is the process of improving your home, whether on the inside or outside. These projects are also known as home renovation and remodeling. They may include interior and exterior home upgrades, as well as property improvements. A home improvement project can help you improve the value of your property and improve your living space. You can even take it one step further by upgrading the exterior of your home.
There are several types of home improvement, each with its own rules and regulations. Renovations must be considered capital improvements, and must be recorded with the department of taxation and finance. In addition, material costs are not tax-exempt. However, if you are planning to renovate your home, you should consult with a CPA to be sure of the exact tax benefits.
Ensure that the contractor you hire is properly licensed and insured. In New York, home improvement contractors must use a written contract, which details the timeframe of the project and the payment schedule. The contract should also contain the architect or engineer plans, which should detail virtually every detail of the job. Also, make sure that you set up an escrow account for the project, which can be accessed only once the project is substantially complete.
Home improvement spending is on the rise. According to the Axiom survey, nearly 40 percent of homeowners plan to begin their first project in 2021 in March. Another 24 percent plan to start in the first two months of the year. Overall, home improvement spending is expected to grow at a 4% annual rate, including both professional remodeling and do-it-yourself work. Furthermore, home equity has increased by 16.2 percent over the past year, allowing people to be more flexible in their spending. As a result, more homeowners are investing in their homes.