After you have settled into your place, you may begin to find a few things that you might wish to change. This is a common feeling for everyone. Once people realize that the honeymoon of moving into a new place is over, they get the itch to start making improvements. There are, of course, practical ways to do this and there are several ways of doing it that will cost you more money in the long run. Here are a few things to consider before renovating your home.
What price will the renovation add to my home? All of this depends on many factors, and not all of them are intuitive. You may think that finishing off the basement will always add costs to your home, however this is only dependent on market conditions. If most of the people who are looking to buy a home in your neighborhood do not place as much value on a finished basement, you may have done all of that work in vain. Always consult a Realtor concerning any kind of improvement and its impact on the value of your home.
Can I get a home equity loan to finance my renovation project? Most people with a great credit history and a decent amount of home equity can take out one of these loans for this purpose. Remember that this is probably not the best step to try to take if you have just purchased your home. Wait awhile until you have built a good rapport with your bank before you start to talk about another loan for renovation. With patience and due diligence, you will find another method to finance your renovation project.
Are there any government programs that will help to fund my renovation project? Of course there are! The HRTC, short for Home Renovation Tax Credit, is a non-refundable tax credit for certain kinds of expenses you pay in the process of improving your home. You’ll be able to claim it on your 2010 tax return, and it applies to any work performed or goods purchased between January 27, 2010 and February 1, 2011. This tax credit applies to any expenses that are over $1,000 and below $10,000. The maximum tax credit for renovating your home can amount to $1,350.
So, before you renovate your home, first ask whether renovations are really necessary. If you just want a few more rooms to look nicer or have some great ideas for a home theater system, that’s fine so long as it comes out of your pocket and you do not expect it to make vast improvements to the price of your home. However, if you’re renovating for the purpose of increasing the price of your home, do speak with a Realtor to make sure that your project will boost the price of your home. And, if you have just moved into your new home, take your time before jumping into a potentially long and cumbersome project. Nobody wants to get into a bunch of work for something that ultimately does not prove to be all that rewarding.
Another great article by Karen Washburn Real Estate, Alaskan Brokers Washburn & Co
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