The housing market may be slipping into this recession, but that doesn’t mean homeowners are, or should be, tightly pinning their pockets when it comes to remodeling their existing homes. Savvy homeowners know that in this buyer’s market, repairmen can’t compete with a glut of bank-owned, foreclosed and affordable properties; It makes sense to make your home as commercial as possible.
A stimulating idea
Here’s a good reason to do some home improvements now: You can get some money from the government. President Obama’s February 2009 economic stimulus package includes tax credits for homeowners who invest in energy efficient home improvements. For qualifying garage doors, for example, you can earn up to $ 1,500, not to mention the savings you’ll see on your energy bills. Tax credits lower your taxes dollar for dollar.
The Home Improvement Economics
Why spend money on remodeling now, when times are already tough? It is a simple question of supply and demand. Builders and contractors are suffering right now, which means they are now offering their services at lower prices these days than they could in a better market. Not to mention, supplies like wood, drywall, or concrete can be found at lower prices now than just a couple of years ago. You could actually save 11 to 22 percent on home renovations in today’s economy, depending on the size and scope of the project.
This means that while the average remodel project achieves a return on investment of approximately 80 cents on the dollar, your savings on supplies and labor could generate an even greater return when the market recovers, multiplying your selling power. Now there is good economic news.
