The Basics of Home Improvement
Home improvement is a process that involves making changes to the interior or exterior of your home. The process is known as remodeling or renovation, and can consist of several different projects. Whether you’re looking to make your home more energy-efficient or to improve the look of your property, home improvement can help you achieve the results you’re looking for.
Cost
There are many factors that can affect the cost of home improvement projects. The United States Census Bureau reported that in the years between 2015 and 2017, Americans spent $450 billion on home improvement projects. These projects included everything from gutting and renovating kitchens and bathrooms to adding a new look to the backyard. Some homeowners spent all of their savings while others took out home equity loans to finance the projects. While the cost of these projects varied widely, the overall trend of homeowners spending money on home improvement projects remained high.
Return on investment (ROI)
Getting an accurate Return on Investment (ROI) on a home improvement project begins with an accurate record of all expenses associated with the project. This includes labor costs, materials, and any loan interest payments. In addition, other expenses are likely to arise, such as testing and permit fees, or increased property taxes. Once the expenses are recorded, the ROI is calculated to determine the net return on investment, or the value added to the home by the improvement.
Loan options
There are a number of different loan options for home improvement. If you are looking for a way to improve the look and function of your home, you may want to consider applying for a HELOC loan. This type of loan allows you to borrow between 70 and 90% of the total equity in your home, depending on the lender. These loans are simple to get and have a set repayment schedule. The repayment schedule will include how much you borrow, the interest rate, the length of the loan, and how much you must pay each month.
Contractors
Whether you’re planning on doing a major renovation or a simple renovation, it’s essential to find a contractor with the appropriate credentials and insurance. Contractors should be insured against personal liability, workers’ compensation, and property damage. Ask for a copy of their insurance policy. It’s also a good idea to ask for a list of references and check online for reviews. You should also get several quotes from different contractors before hiring them. Be sure to factor in any additional costs and additional time that may be needed to complete the project.
Rental property repairs
When it comes to rental properties, repairs and improvements can be a huge difference. It is especially important to determine the size of the unit, since bigger units are likely to need more work.
Tax credits
The federal government offers a variety of home improvement tax credits to borrowers who invest in energy-efficient remodeling projects. These credits are deductible when a homeowner files their annual income taxes. Many homeowners choose to use these credits to improve their homes to reduce their heating and cooling costs.