If you are planning on doing home improvements, you should consider a home improvement credit card. This is a great option if you only need to make a few upgrades such as a fresh paint job or a new appliance. Most credit cards have an introductory 0% APR period of up to 12 months, meaning you won’t have to pay interest for the first year. Some even have cashback rewards that you can use for home improvements.
According to the Axiom survey, homeowners are likely to spend more on home improvement projects in the coming year than they did last year. The most common project that homeowners plan to complete is repairing their outdoor areas. Twenty-five percent plan to fix or build a deck or patio. The pandemic has heightened consumer interest in at-home entertainment areas, so many people are now turning to DIY projects.
When looking for a home improvement loan, you should consider whether you want to pay off the loan all at once or make several smaller payments over the course of several years. If you plan to pay off the loan at once, a home equity loan or a personal loan will be more suitable. Alternatively, you can open a home equity line of credit, which will give you the flexibility to use it when you need to.
Home improvement projects can provide a substantial return on investment, sometimes up to 70 percent. However, the return on investment depends on the type of project you choose. Some projects will simply add value, while others will adapt the house to different uses. For tax purposes, home improvement expenses can be tax-deductible when you sell the home. To take full advantage of the tax advantages of home improvements, it’s important to track costs and receipts to get the most out of your money.