7 Home Improvements to Increase Your Home's Value

With the deadline for the home tax renovation credit just around the corner, many home owners are asking "What renovations will get me the best return for my investment?"

Below are the top seven home improvements from MoneyCrashers.com along with some personal tips to help increase your homes value when completing your renovations.

1. Remodel the kitchen - Take into account the value of your home. If your home is worth around $750,000.00 you should consider a $50,000.00 kitchen makeover. If you home is worth $250,000.00, you should invest $5,000.00 - $10,000 in your renovation. Instead of new cupboards, try refinishing the ones you have. New flooring, upgraded counter tops, sinks and fixtures are great items to address and can also be inexpensive.
2. Remodel the bathrooms - this does not need to be a lot of work. Simple updates in things such as a new vanity, flooring and fixtures can add great value and can be completed for less than $5,000.00. If you have one of those older bathrooms, with a yellow, green or even pink tub and toilet perhaps consider Bath Fitters. With excellent and inexpensive options, Bath Fitters can transform your bathroom in as little as one day! You can get more information about Bath Fitters at www.Bathfitters.com
3. Install a privacy fence - by installing a privacy fence you will get good return for your money! Not only will you give your property some privacy, but you home will also appeal to Buyers with children and pets.
4. Replace the windows - New windows help improve energy efficiency in your home. With the new "Mandatory Home Energy Audit" set to become Provincial legislation next spring, new windows will not only benefit a Buyer for your home, but also yourself when it comes time to sell. At the time of a viewing, most Buyers will ask the question "how old are the windows?"
5. Finish your basement - adding drywall, flooring and ceilings can expand your living space very quickly, and add value to your home.
6. Replace your roof - just like windows, one of the first questions Buyers ask when viewing a home is "How old is the roof?" When we talk about the roof we don't just mean the shingles. Replace the sheathing while you're up there to ensure any old damage is completely repaired. If your house is compared to the neighbours house and yours has a new roof you'll likely be at an advantage.
7. Add a deck - What a great place to entertain and barbecue. Decks are a great selling feature, and they never go out of style.

Hopefully you still have time to take advantage of the tax credit available until February 1, 2010. For more information on the this rebate click here.

HAPPY RENOVATING!!

Top seven tips compiled from www.MoneyCrashers.com. Tip explanations courtesy of www.MoneyCrashers.com and REALTOR® Amie Trinder.

HST legislation means big tax increases to buyers, sellers & home owners in Ontario

Today the Government of Ontario formally launched its latest assault on homeowners, buyers and sellers with the introduction of Bill 218, the Ontario Tax Plan for More Jobs and Growth Act, 2009, says the Ontario Real Estate Association.

Effective July 1, 2010, home buyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, home energy audits, and moving costs.

The Ontario Real Estate Association estimates that the new tax will add $1,449.00 in new taxes to an average resale home costing $302,354.00. OREA also estimates that the HST will add an estimated $262 million in new taxes annually to residential resale real estate transactions.

For homeowners the HST will also add hundreds of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. OREA estimates HST on these services will add $480 in annual tax to the homeowner (based on a family that budgets $500 per month for such costs).

Help stop the HST today. Send a letter to your local MPP and let them know you oppose this new tax.

How do you contact your local MPP? Send me an email and I will reply with your MPP's email address.

Cut Energy Costs

With winter just around the corner, homeowners are always thinking about energy costs, how to save and what to do. This article will answer your questions and offer you simple tips and tricks to save money on energy costs this winter.

Warm air leaking out of your home during the winter months can waste a large portion of your energy dollars. But a well insulated and weatherized home can reduce your heating costs by up to 30 per cent. This is especially important given today’s higher utility costs.

Identify the energy wasters

A home energy audit will show you where your home may be wasting energy. You can do a simple audit yourself or many local utility companies will conduct energy audits for free or for a nominal charge.

For a fee, a professional contractor will analyze how your home’s energy systems work together and compare the analysis against your utility bills. Your local utility can provide you with many more ideas to save energy in your home, but identifying the energy wasters is a good place to start. Once you know the places where you’re losing energy, you can assign priorities for improvement.

When formulating your plan, you may want to ask yourself the following:

• How much do you currently spend on energy?
• Where are the greatest energy losses?
• How long will it take for an investment in energy efficiency to pay for itself in energy saving?
• Can the work be done by you or should you hire a contractor?
• What is your budget, and how much time do you have to spend on maintenance and repair?

Check your home's insulation system

First check the insulation in your attic, ceilings, exterior and basement walls, floors, and crawl spaces to see if it meets the levels recommended for your area. Insulation is measured in R-value – the higher the R-values, the better your walls and roof will resist heat loss.

The easiest and most cost-effective way to insulate your home is to add insulation in the attic. To find out if you have enough attic insulation, measure the thickness of insulation. If there is less than R-22 (7 inches of fiberglass or 6 inches of cellulose) you should probably add more. If your attic has enough insulation and you are still feeling a chill, chances are you need to add insulation to the exterior walls as well.

Recommendations for cost-effective energy improvements

Heating

• Set your thermostat as low as is comfortable in the winter.
• Clean or replace furnace filters once a month or as needed.
• Clean warm-air registers, baseboard heaters, and radiators as needed; make sure they’re not blocked by furniture.
• Use kitchen, bath, and other ventilating fans sparingly; in just one hour these fans can rob a houseful of warm air.
• Keep drapes and shades on your south-facing windows open during the day to allow sunlight to enter your home.
• Select energy efficient heating equipment and appliances.
• Install exterior or interior storm windows and caulk, seal and weatherstrip all seams, cracks and openings to the outside.

Water heating

• Repair leaky faucets promptly; a leaky faucet wastes gallons of water in a short period of time.
• Insulate your electric hot-water storage tank and pipes.
• Install low-flow faucets and showerheads
• Lower the thermostat on your water heater.
• Take more showers than baths. Bathing uses 15-25 gallons of hot water while a 5-minute shower uses less than 10 gallons.

Lighting

• Turn off the lights in any room you are not using, or install timers, photo cells, or occupancy sensors to reduce the amount of time your lights are on.
• Use task lighting instead of lighting the entire room.
• Use compact fluorescent bulbs which are four times more energy efficient than incandescent bulbs and provide the same lighting.

Home Renovation Tax Credit

Time is running out to take advantage of the 2009 Canadian Home Renovation Tax Credit (HRTC). With only 3 months remaining, get those receipts together or plan needed renovations for completion before the deadline.

The HRTC is a tax credit for eligible expenses incurred for work performed or goods acquired in respect of an eligible dwelling.

These claims can be made on your 2009 income tax provided the work performed or goods acquired were done so after January 27, 2009 and before February 1, 2010.

What is an eligible dwelling?

An eligible dwelling of an individual is a housing unit located in Canada. All the following conditions must be met:

• You own at the time of the renovation or alteration, alone or jointly with another person, the housing unit or share of the capital stock of a co-operative housing corporation you acquired solely to get the right to inhabit the housing unit owned by that corporation; and
  
• You, your current or former spouse, or your current or former common-law partner, or any of your or your spouse or common-law partner's children ordinarily inhabited the housing unit at any time during the eligible period.

Who is eligible for the credit?

Eligibility for the HRTC is family based. Eligible family members include you and your spouse or common-law partner, and your or your spouse's or common-law partner's children who are under 18 years of age at the end of 2009 (other than a child who, at any time during the eligible period - after January 27, 2009, and before February 1, 2010 - was married, was in a common-law relationship, or had a child).

The claim can be split among eligible family members but the total amount claimed cannot exceed the maximum allowable.

If two or more families share the ownership of an eligible dwelling, each family can claim its own credit (i.e., each up to $1,350) that is calculated on its respective eligible expenses.

How is the credit calculated?

The HRTC is only available for the 2009 tax year and applies to the total eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 [($10,000 - $1,000) x 15%].

What are eligible expenses?

Expenses are eligible when they are incurred by an eligible family member and are directly attributable to a renovation or alteration to an eligible dwelling (including the land that forms part of the eligible dwelling) and are of an enduring nature and integral to the dwelling.

A general rule is that if the item you purchase will not become a permanent part of your dwelling, it is not eligible.

For examples of eligible and ineligible expenses please click here.

All expenses must be supported by acceptable documentation. Be sure to keep all record, receipts, quotes and bills.

What if I own two eligible properties?

If you, your current or former spouse or your current or former common-law partner or any of your or your spouse or common-law partner's children ordinarily inhabited each property at any time during the eligible period, eligible expenses incurred for both properties will generally qualify for the HRTC. However, the maximum amount of eligible expenses you can claim for the HRTC is $10,000.

If the main reason for owning the recreational property is to gain or produce income, expenses related to the property are not eligible for the HRTC. However, you will not be considered to own the property to gain or produce income if you receive only incidental income related to the property.

How do I claim the HRTC?

A new schedule will be included in your 2009 tax package to allow you to list your eligible expenses and to calculate the amount you can claim. Also, a new line will be added to Schedule 1 to claim the HRTC.

If you are filing a paper return, do not include your receipts or documents supporting your claim. Keep them in case we ask to see them. You must however attach the new HRTC schedule to your paper return.

For further information on how to claim the HRTC, what the Candian Revenue Agency considers acceptable documentations and other related information click here.

Information gathered from The Canadian Revenue Agency.