Home Improvement Spending Expected to Rise in 2021
Almost one in three homeowners plans to undertake a home improvement project during the year ahead. Some of these improvements may include installing new cabinets or countertops; installing new tiles; and updating the HVAC (heating and air conditioning) systems. Others may opt to replace outdated wall colors and wall tiles. Whatever the case, home improvement spending is expected to rise in 2021.
Generally, home improvements increase the value of the home. Some of these improvements may even be tax deductible. According to TaxSlayer.com, examples of such improvements include a new roof, siding, insulation in the attic, and built-in appliances. Homeowners may claim tax benefits for these improvements only if they improve the livability and utility of their property.
Before hiring a contractor, it’s important to create a detailed list of the work you want done. This list can help you negotiate with the contractor and lock in a firm price. It will also help you weed out contractors who aren’t licensed or insured. Additionally, check with the building codes office to determine if your contractor needs any permits. Finally, remember to compare prices from several contractors and their timelines.
Whether you plan to sell your home or keep it as a rental, home improvements can increase its value. New kitchens and bathrooms, for example, can add up to twenty percent to a home’s value. Meanwhile, exterior renovations add just two percent to five percent to a home’s value.