When you decide to renovate or remodel your home, it’s a good idea to make upgrades that both improve your comfort level and raise the value of your property at the same time. Two plumbing installations that are likely to accomplish both goals are new bathrooms and in-ground pools. These luxury home features can be expensive to add, but you will be able to enjoy them for years, and they should allow you to increase your asking price if you ever decide to sell your home. On the flip side of the equation, these plumbing installations can also cause your real estate tax bills to increase. Read on to learn more.
Home Improvement Spending Poised to Jump
Many families are taking advantage of a growing economy and favorable interest rates to upgrade their home plumbing installations. According to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, home improvement spending growth will jump to 6.8 percent this year, compared to 2.4 percent growth last year. And when it comes to plumbing installations, pools and bathrooms are the highest-value investments.
When you decide to add a new bathroom to your home or remodel an existing bathroom, you have a lot of options at your disposal. Maybe you want to mimic the best in celebrity bathrooms or make a custom plumbing installation that’s a perfect fit for your own personal style. You can ramp up the IQ of your bathroom with a smart toilet or other advanced technology. Whatever choice you make, your new water closet is sure to be more attractive and valuable than what you were using before.
Plumbing Installations that Trigger the Tax Man
A swimming pool is also a coveted addition to any backyard, and upgrades of this type usually mean that you can sell your home for a higher price. However, prospective buyers might not be the only ones who learn about your new and improved plumbing installations. Most major home projects require you to pull permits from your municipality in order to comply with local building codes. That means the local government knows about the upgrade and may send an assessor to raise the value of your home -- and therefore the taxes you have to pay as well.
So are the increased taxes worth the renovation? Only you can decide that. For some families, the ability to enjoy a pool or new bathroom far outweighs the amount of money that they have to pay. For others on a tighter budget, an increased assessment might be enough to delay or cancel a project outright, especially if they plan on living in the home for years and therefore won’t see a return on their investment through a sale.
Qualified Advice to Guide You on the Right Path