The word renovation is intimidating. It’s big, expensive and it comes with its fair share of stressors. But if you’re considering undertaking this project to update your home, there are some perks. Let’s face it: a renovation gives you the opportunity to change almost everything about your house—from the paint on the walls to the flooring and lighting fixtures. The moment might be scary, but there are also many benefits to renovating your home instead of moving or listing it for sale. Read on for 5 things you should know before renovating your home.
It can increase your home’s value
The minute you make any substantial changes to your home, you can expect its value to increase. You can also expect your home’s value to increase due to the demand for properties in your area, but renovations will give your home a boost in value beyond the normal rate. This is great if you’re planning to sell or you’d like to access your home equity to help pay for renovations. Keep in mind that renovations have to be done correctly for your home’s value to increase. You won’t get any additional monetary benefit if the renovations are shoddy and don’t last. With that being said, it’s important to consider other factors that can impact your home’s value, like your proximity to the city.
You’ll have a blank canvas to update the things you don’t like
If your house is more than 10 years old, it’s likely that you don’t like the flooring, countertops, or light fixtures. Because of this, you may be less inclined to move because of all the work necessary to change these things. This is where renovations come in handy. Renovating your home allows you to completely change the way your house looks and feels. You can change those dated and uncomfortable countertops, and you can update that ugly laminate flooring in your kitchen and bathrooms. If you’re renovating, you can change everything about your house and not have to worry about changing the layout of your home. This is especially helpful if you have a young family who might not be able to cope with changes like removing walls, knocking down staircases, or repositioning bedrooms.
Renovations can be a tax deduction
As if renovations weren’t great enough, they can also significantly reduce your tax bill. If you are renovating your home, then you can deduct the cost of materials, labour, permits and contractors; this includes any costs related to demolition and removal. The only catch is that you have to make sure the renovations are substantial enough to be worth claiming. The total cost of your renovations should be more than $2,000 and should last more than one month. Alternatively, if you’re working on a major renovation, like converting your home to solar energy, you could claim up to $10,000. If you’re renovating your home to accommodate a medical condition, you can also claim a tax deduction. You can deduct up to $2,000 for costs associated with installing things like handrails, ramps, and widened door frames. This is a great way to save some money, but you have to keep in mind that you have to report these deductions. Make sure you report your renovation costs on your tax return so you can save some cash. Visit CCRA for more details at https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2022/did-you-buy-build-sell-renovate-home-2021.html
Renovating is a great way to build equity
If you’re concerned about the rising interest rates and if you’ll be able to afford your mortgage payments, you might want to consider a renovation that increases the value of your home. Doing so will help you build equity in your home more quickly; this will allow you to get your hands on more cash to help with future expenses. Building equity in your home is important, especially if interest rates continue to rise. Having equity in your home can help you make homeownership more affordable. If you’re renovating to add square footage to your home, you can expect to see positive equity gains after five years. If you’re renovating to improve your home’s aesthetics, expect to see positive equity gains after three years.
There are different types of renovations you can do
There are a ton of different types of renovations you can do. The most common types of renovations are cosmetic renovations. Think: installing new counters, tiling your floors, and repainting the walls. Beyond cosmetic renovations, you can also do functional renovations. Functional renovations are changes to your house that improve the way it functions. Functional renovations can include updating a roof, adding insulation, or installing solar panels. Lastly, you can also do structural renovations. These are renovations that affect the building’s structure, like adding an addition to your home or adding an on-grade basement. There are many different types of renovations that you can do, and they can all be beneficial to your home. The only thing to keep in mind is that you have to plan out your renovations. You need to know exactly what you’re doing and how much it will cost to make sure you can afford it.
Renovating your home is a great way to bring your house up to date. It’s the perfect opportunity to change everything about the interior of your house, from the flooring to the lighting fixtures. A renovation is a great way to increase the value of your home and it’s a great way to build equity. Speak to the professionals at www.rewyndprojects.ca and get your FREE Estimate.