Monday, 7 August 2017

Here’s How A Kitchen Renovation Can Benefit You Financially!


If you are looking for a makeover to your property which can give you maximum returns on your investment, then kitchen renovation is the best one to choose. The benefits of investing in such a renovation are many. Compared to the other areas, it is the one with least financial risk provided the renovation is done with quality products and skilled laborers. Kitchen Capital Subiaco, WA, can help you if you are looking for some professional advice in this area!
According to www.houzz.com, the kitchen is a vital part of your house and if it is not in the way you want it to be then renovation is a must without a second thought! Let’s see what the financial benefits of kitchen renovation are!
Reduced tax
The tax deduction is often the most attractive benefit of a kitchen renovation. There is a residual value for the kitchen you are going to renovate, and you can
claim a considerable depreciation while writing off. Depreciation can be claimed even before you start renovation! The depreciation period of kitchens is long (almost forty years) and hence you can claim more money.
You will be deprived of this benefit if the renovation is of low quality. So spend enough money on components such as white goods. Their depreciation rate is high, but it does not matter as it can be claimed. Buying good quality items is beneficial in the future.
Capital works, and plant allowance are the other things which you, as an investor, can claim. If you have a depreciation plan with you, then you can also claim the entire lifespan of the kitchen which builds up to a lot as time passes.
Increased property value
In addition to the tax benefits, a renovated kitchen benefits you as an owner of the property. If you are going to live there or sell it in future; in both cases a kitchen renovation is beneficial.
If selling is your plan, then an excellent kitchen is the one which attracts more buyers than swimming pools, gardens, garages, etc. Though there may be buyers who look for other features, the kitchen is most often the deciding factor because no one would be interested in spending money to upgrade it. So if they find a kitchen which is functional, convenient and aesthetically attractive, there are high chances that they choose the property.
If your renovation is just a decent one which would not add so much value to your property, you need not worry! You are saved from the buyer asking a deduction due to the poorly maintained kitchen. You would have to give into his request if your kitchen is not in a decent condition. Moreover, a poor and outdated kitchen would never get sold out soon. So it’s better to invest in its renovation before bringing it to the market.
Note these points before you start!

Renovate your kitchen only after 12 months of purchase for full tax depreciation, or else it won’t be considered at all. Consult with an experienced tax specialist to ensure that you get your entitled reductions.

No comments:

Post a Comment