The true costs of home improvements – Irvine Real Estate – Irvine Homes for Sale

by Robert Mack on December 25, 2010

in Latest News, Sellers

On paper it seems simple: $30,000 for a kitchen redo, $16,000 for a new bathroom, $44,000 for a family room addition.

But what are the true costs of those home improvement projects? For example, that kitchen redo could actually be done for as little as $20,000, and the new bathroom may actually cost just $12,000.

On the other hand, a family room addition that costs $44,000 on paper may end up costing twice that much when you factor in decorating and furnishing that room.

The true cost of home improvements can often differ from the on-paper costs, and those costs can go up or down depending on the type of project.

For example, the way you finance the project can affect the true cost. The biggest “savings” can come from a tax deduction if you pay for the improvement through a home equity loan or home equity line of credit.

The interest on a home equity loan or line of credit can be deducted from your federal income taxes. As most loans are set up so that the homeowner only makes interest payments, or payments that are heavily interest-oriented, the savings can be substantial.

On the other hand, stretching out the cost of a home improvement over 15 years or more can add to the total cost.

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This one makes you think!

Posted on Irvine Orange County Real Estate Market News

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Post by Robert Mack

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