Home improvement is a general term that describes work done on a residential building or land to improve it. It can include remodeling, repairs, alterations, conversions, extensions and more. Many homeowners undertake home improvement projects in order to add value to their property. Others are motivated by the need to update an outdated kitchen, bathroom or living area. Regardless of motivation, the result should be a safe and comfortable dwelling.
A recent survey by Angi, a contractor search service/home renovation site, found that nearly three-fourths of homeowners have money set aside for home improvement projects. However, the same study also found that most homeowners are not confident that they can afford to complete their planned projects without tapping into those savings or going into debt.
While rock-bottom interest rates make borrowing less costly, they also mean that the cost of home improvements is likely to rise in the near future. Consequently, it is important to find ways to do more with less while still making those vital home improvements.
One way to help offset the increased costs of home improvement is to look for labor-exempt materials. In New York, for example, homeowners are not required to pay sales tax on labor if they have documentation that their project is considered a capital improvement by the Department of Taxation and Finance. Other states may have similar requirements, so it is important to check with a CPA or local government first.