As the 2008 recession lingers into its fourth year, many consumers have closed their wallets to a long list of “big ticket” purchases, and Flooring Waldorf Md appear to be riding the top of that list.
According to a 2010 Bigresearch.com study, home owners are throwing their home improvements plans out the window like burnt toast. Over 20% of those surveyed said they were putting-off all forms of home improvement indefinitely. Interestingly, this percentage ranked second highest among all survey questions, with only “vacation travel” showing a higher figure (25%).
With cash reserves at a premium, many home owners have simply decided to wait on making improvements, and understandably so. Faced with record unemployment, higher costs of living, rising taxes and a dim view of any short term changes for the better, who could blame them?
Worse yet, home improvements have historically yielded very low returns when compared to their actual cost. In fact, Remodeling Magazine’s 2009-10 “cost vs. value” report reveals that home owners, on average, recoup less than of 65% of the money they invest in their home improvement projects.
But before you conclude that your home improvement plans should be scraped, let’s take a step back.
There are very few home owners who wouldn’t admit to needing some measure of improvement to their home. Whether it’s as simple as repairing the leaky faucet gasket that drives you crazy with its relentless dripping, or an unreliable front porch light fixture that leaves you fumbling around in the dark when you return home from a long day at work. Every house has its deficiencies.
But with a recession in full bloom, and statistics showing little to no hope of ever getting your money back, why would anyone bother with a home improvement project?
Though at first it may seem like a lost cause or verging on lunacy, there are simple solutions that many consumers are using to solve this problem.
First, let’s address the big one. The statistics from Remodeling Magazine and other similar resources, assume that a building contractor is being paid to perform all the labor and to supply all the materials. And if you assume, on average, approximately 50% of the total costs of most home improvement projects will be attributable to labor and fees, you can literally transform the investment returns by performing the majority of the work yourself. What was once a 35% loss becomes a 30% gain by simply providing your own labor force. Not a bad return in any economy.
Second, although the IRS does not allow deductions for most voluntary home improvements, they do allow you to add the costs of your improvements to the cost basis of your home. And for tax purposes, this will help minimize any tax burden you might face when you sell your home. I don’t claim to be a tax expert, but you can easily verify your cost basis and tax deduction options by talking with you’re tax accountant.
So how do you perform the work yourself? If you think tackling your home improvement project is beyond your ability, you’re in for a surprise. It’s not!
Like many things, the more you do something the more proficient you become, but construction is not terribly complex. It doesn’t require years of schooling and technical expertise to comprehend. It’s not brain surgery. It’s arguably more art than science. In fact, if you can draw a straight line, read a measuring tape and you don’t mind getting a little dirty you’re a perfect candidate for tacking your own home improvements.