Home improvements are a great way to turn a house into a home. In addition to making your house a better place to live in, home improvements also raise the value of your home. If investment is what is on top of your mind, and you cannot purchase yet another house just yet, home improvement could be a great option. This is much cheaper than actually buying another house. In addition, this would have far more tangible value than investing in shares or bonds. After all, you would be able to see and experience the improvements once they are done.
Getting home improvement loans is not too much of a problem. You can use the property as collateral as you go in for a secured loan to fund your home improvement needs. If you are not keen to put your property at risk, you could go in for an unsecured loan. But remember, an unsecured loan is usually a good deal costlier than a secured one. If you are still repaying mortgage, you could release the equity value of you home and avail of a home equity loan. This would be a great way to make use of the equity which would otherwise just lie around.
However, just getting the loan will not help you with your home improvements. You also have the hassle of hiring a contractor. Now, unless you know of people who have recently carried out major home improvements, getting a great contractor may not be the easiest thing in the world. But with a little persistence, you should be able to find one that is efficient, qualified, and affordable. Make sure that you do your own research before you talk to him though. That way, you will be able to tell him how exactly you would like the improvements to be carried out.
Also, do not just choose the first contractor that you come across. Even if his credentials seem sound, make sure you run a background check first. In case your contractor is the type who tends to not pay his workers and suppliers, you would not want to be landed with huge bills that you have already paid for. Also make sure that you check to see if he has insurance. If not, you might end up being liable for any injuries that may occur on your premises. Thus, before you even start home improvements in your home, make sure you do your research. Only then will you be able to get the best deals.
By: Ajeet Khurana
Posts Tagged ‘Hiring A Contractor’
Dealing With Home Improvement Questions
February 22nd, 2010Claiming a Home Improvement Tax Deduction
December 24th, 2009
The approach of spring often encourages homeowners to start considering home improvements and repairs. However, before you start getting out the hammer and nails or hiring a contractor consider if your home improvements may be eligible for a home improvement tax deduction.
The first thing the homeowner must understand is the difference between a home improvement and a home repair. Simply put, a home repair is classified as fixing a problem. For example, repairing a hole in the roof, fixing a leak or repainting a room would be considered repairs. On the other hand, remodeling a kitchen, adding a couple of rooms, building a garage or installing a swimming pool would be classed as improvements. These improvements add to the living amenity of the home’s owners and usually add value to the home.
The Internal Revenue Service sets out strict guidelines on how a homeowner can claim a tax deduction for home improvements. It is strongly recommended that before you hire a contractor or start any home improvement works that you obtain advice from you tax consultant or from the local office of the IRS
Tax deductions can fall into any of several different categories. A medical condition that required providing disabled access to home would normally be classed as a home improvement.
There is a special tax deduction for victims of Hurricane Katrina. Consult with the IRS regarding the Katrina Emergency Tax Relief Act as it increases the permitted qualifying home improvement loans.
If you are planning improvements to an area of your home that is in need of repair you may be able to include the repair as an improvement. The Tax Act states that where a repair is carried out in the same area of the home that is being remodeled then the repair can be included as part of the remodeling project. So, if you are planning on remodeling your kitchen don’t forget to take care of the leaking pipes at the same time and claim the entire project as a deduction.
Tax Credits vs Tax Deduction
Tax credits can also provide significant savings to the homeowner. Whilst a tax deduction for home improvements can reduce the amount of income on which tax is payable, a tax credit directly reduces the tax itself. Tax credits are available for many types of home improvements. For example, installing insulation, adding energy-efficient windows, and some types of highly efficient equipment for cooling and heating, and solar water heating may all qualify for tax credits.
By: Alison Stevens
Related Post:
taxact home improvementHome Improvement Contract Tips
December 8th, 2009
Many a soul has hired a contractor to do repairs or improvements on a home only to find something is fishy. Here are some tips to avoid problems.
Home Improvement Contract Tips
Hiring a contractor to do work on your home is not always as easy as it sounds. Many people call themselves contractors, but really are not. The first step to avoiding problems is to make sure you hire someone with who is actually licensed as a contractor. If you subsequently have problems, you can contact the licensing board to raise a dispute.
Most contractors are ethical, honest people and businesses. There are, however, others who are not. These individuals assume you do not really know what is involved in the construction process. This provides them with an opening to make substantially more profit. While you might think this means they will overbid the project, it does not. Most contractors believe you will pick the lowest price, so they rarely run up their estimate. There are, however, two other ways to boost profit.
The first thing unethical contractors will do is use low quality supplies. As with anything you buy, there is a high quality and lower quality version. While you may want the high quality version, you may have a hard time determining if you received it. The difference between high and low quality is often how long something lasts, not how it appears. The way to beat this problem is to specify the exact brand, size and part number [if possible] in your contract. Doing so accomplishes two things. First, it puts the contractor on notice that you know how the process works. Second, you can always resort to legal action if you later find the correct materials were not used. Since you have everything in writing, the contractor has little defense.
A second unethical tactic is the bait and switch. In this process, the contractor gives you a bid price that can’t possibly cover the project. You think you are getting a deal, but the contractor starts coming to you after the project has started requesting more money. The contractor refuses to continue work if you do not pony up. In this situation, the best defense is again to have everything in writing in the project contract. Make sure to include an attorney’s fee clause in it. If the contractor tries this tactic, you should contact an attorney. The attorney will set the contractor straight. If the contract refuses to finish the job, you will probably be told by the attorney to hire a new contractor while he sues the unethical one. Since an attorney’s fee clause is included in the agreement, you should end up paying no legal fees. This is not the best situation, but it beats getting scammed.
In general, the best way to find a contractor is to ask for referrals from trusted friends. Next, get everything in writing. With these two steps, you should avoid any major problems.
By: Raynor James