5 Reasons to Invest in Home Improvement
The Home Improvement market is predicted to expand by 4% annually to reach $510 billion by 2024. This number is fueled by a shift in market competition as private labels and niche vendors enter the market. These new players are competing with major vendors on product portfolios, premiumization and differentiation.
Millennials are driving the home improvement industry with billions of dollars going toward home improvements. However, in the coming years, the growth rate is expected to decelerate as inflation takes its toll. That said, home remodeling retailers are forecast to experience a strong start to the year, especially as the economy continues to improve.
When it comes to home improvement, it’s important to do your homework. If you decide to do your own project, make sure to research the contractor and its license to ensure you get a quality job. It’s also a good idea to check with your CPA or tax advisor to determine if the work you’re doing qualifies as a capital improvement.
One of the biggest expenses homeowners face is energy costs. Luckily, home improvements can help reduce costs through the use of energy-efficient appliances. Additionally, installing a central air conditioning system can help keep noise levels down inside the home. You can also consider updating your kitchen to include a pantry, counter space, and food storage.
Another reason to invest in quality upgrades for your home is that it can increase its resale value. Although it can be tempting to go for an extravagant upgrade, such as a marble floor in your bathroom, it’s important to remember that potential buyers aren’t likely to pay for such upgrades. Instead, consider making a mid-range investment in upgrades that will appeal to a broader audience.
Investing in a new front door is an inexpensive way to boost the appearance of your home. Adding a new deck and fence will also improve its look.
Home renovations can be done over a period of time or in a single lump sum. Before starting a home renovation project, it’s important to create a budget to meet your needs. In addition, it’s a good idea to make a list of things you want to do. Doing this will help you stay on track and avoid going over your budget.
While you’re planning your next home improvement project, don’t forget to check with your state’s Department of Taxation and Finance for any regulations regarding home improvement. Most states require that you file a home improvement project with the department.
If you’re considering making a major investment in your home, you might want to consider taking out a home equity loan. This type of loan requires you to put 20% of your home’s value into a home equity line of credit. Unlike a personal loan, you’ll have to wait for approval before using the line of credit. Also, you will have to complete a lengthier underwriting process and will have to pay a higher interest rate.