Home Renovations

Time is running out for homeowners looking to take advantage of the Home Renovation Tax Credit (HRTC), which expires at the end of January. The credit allows home owners to claim a one-time amount on their 2009 income taxes if they spent between $1,000 and $10,000 on home improvements between January 27, 2009 and February 1, 2010.

While the word "home" tends to conjure images of freehold housing, condominium owners are also eligible to take advantage of this credit, although, some owners might be unsure of how to claim the HRTC.

Condo owners can claim both eligible expenses made to their unit and also the portion of their condo fees allocated for renovations made to the common areas of their building. However, people who rent a condominium unit are not entitled to claim this credit.

Contact your condominium corporation to see if there's any money that you can claim. In order to apply for the HRTC you'll need to have the eligible amount in writing. Claiming common area expenses might make the difference between being able to claim the credit and missing out.

I've noticed in the past couple of months various businesses specifically advertising products that are eligible for the Home Renovation Tax Credit (HRTC) which I thought was an interesting way to convince customers to let go of some of their hard earned money and indulge in some home improvements. Of course, as part of Canada's Economic Action plan that was the point of the HRTC.

For home owners of single family homes the guidelines are straightforward, but if you're a condo owner the rules are more complicated. If you're a renter, you're totally out of luck. With only two more months to take advantage of this one time only non-refundable tax credit, it'll be interesting to see how much of a jumpstart to the economy it produces.

The beauty of a new home is that you can basically turn the key in the lock, walk in, and start living in the house. Having a brand new home is not an option for many of us, and we have to make the best of the house we have. Getting the most out of our home can mean major renovations, which can also mean major money. Not only will you need to access the money through mortgage refinancing, you will need to come up with a set plan for renovations so you don't blow your budget on just one room.

When renovating your home, the largest and most expensive area to overhaul is the kitchen. With an older home, you will need to redo the cupboards, appliances, sinks, and flooring. Salvage parts of the kitchen where possible. For example, if your cupboards are in fairly good shape, they may just need a coat of paint.

Bathrooms are another expensive area to renovate. Fixture for bathrooms can run you into the thousands of dollars. Although it may be tempting to go for inexpensive tubs and toilets in your bathroom, your best bet is to invest a good amount of money. Beautiful bathrooms can really increase the resale of your home; don't skimp on the extras.

Your first step in a home renovation is not planning where you are going to spend the money; it's getting your hands on the appropriate amount of funds through a mortgage refinancing. Once your funds are secured, pick and choose the renovations that are right for your family.