You may be thinking that there couldn’t be a worse time to spend money on renovations with the economy in the state it is, but surprisingly, there are several reasons why now is the best time to break out the toolbox and invest a little savings into your home.
One of the best reasons is the Home Renovation Tax Credit (HRTC) set out in the Federal Government’s 2009 budget. The purpose of the plan is to give Canadians immediate incentive to carry out renovation plans and to speed up current projects in hopes of stimulating the housing market.
The credit is for 15 percent of expenditures between $1,000 and $10,000 with a maximum reimbursement of $1,350.00. It can be claimed for houses, cottages and condos that are owned for personal use and for renovation services and goods acquired after January 27, 2009, but before the first of February next year.
If you’ve been putting off finishing your basement or been thinking about remodelling your bathroom or kitchen for some time now, this credit is a great reason to get started. While some of your costs will be covered come tax time, you’ll be making a smart long-term investment into the value of your home.
A few renovations can not only increase your quality of life while spending time at home, but will also give you that little extra something when trying to attract buyers. By touching up or remodelling certain rooms and fixtures around the house you can usually make back much more than you originally invested when it comes time to sell.
The onset of the recession has turned several regions of Canada into buyers’ markets, which can make selling your home a little tougher these days, but if you need to sell this year a few renovations may help you get that listing price you’re hoping for. Keep in mind that once you sell, you can take advantage of market conditions and buy at a lower price yourself and benefit from lower interest rates too.
There’s no reason to put your renovation plans on hold for now, in fact, there’s every reason not to. Investing in your home this year means you can benefit from the HRTC, increase the value of your house for a better chance of selling in today’s market and do your part to stimulate the economy by hiring services and purchasing building materials. There really is no better time to renovate than now.
What Better Time to Renovate?
- June 9, 2009
Broker of Record
CENTURY 21 Leading Edge Realty Inc., Brokerage*