Home improvement refers to any type of renovation, repair or remodeling that takes place in a residential property. It includes anything that adds to the value of a property such as a swimming pool, a finished basement and a new kitchen.
When deciding which home improvement projects to take on, it’s important to consider what you hope to achieve in the long run. While some changes may improve your home’s function and increase its market value, others are primarily intended to make it more comfortable.
If you’re planning a major renovation, it’s also wise to factor in how much it will cost. That way, you can determine whether it’s worth the hassle and expense.
The best way to budget for a project is to start with a firm timeline. This will ensure that all of the key elements are covered and you won’t have to deal with last-minute changes, which can be costly and stressful.
Using a home improvement loan can also help pay for the costs of your project and give you more flexibility if you need to pay it off sooner than you originally expected. However, it can also carry higher interest rates than a credit card and a personal loan.
Before starting any construction work, it’s critical to get all of the details in writing. A contractor should provide you with a contract that clearly outlines the project’s timeline and payments schedule.
You should also request that your contractor obtain a certificate of capital improvement from the State of New York Department of Taxation and Finance before beginning any work in order to avoid paying sales tax on labor, materials and other expenses. This document can be obtained by filling out a Form ST-124, Certificate of Capital Improvement.