Renovations: Worth It! Despite Economic Hardships
The cost of living is soaring. Most Canadians are trying to be mindful of where and how they spend their money. It can be easy to put off renovating your home for another day and simply make minor repairs as and when you need them.
For many Canadians, their homes are the most expensive investments they’ll ever make in their lives. Renovating your home to make sure it’s functioning well is a form of protecting your investment. Additionally, certain renovations can add value to your home without costing the earth. When you get down to it, however, home renovations are typically carried out for two reasons:
- To flip the house
- To improve your quality of life.
The reasons for renovating to flip a house are obvious and it’s often a no-brainer when you’re planning to sell. It can get a little murky when you’re planning on continuing to live in your home indefinitely. Read on to learn why the best time to renovate your home is now!
You can claim tax rebates and credits!
Every province has its own set of tax rebates and credits meant to help home owners carry out renovations to their homes to help them save energy or make their homes more accessible. Here are some of the tax credits and rebates you can claim for your home in Alberta.
- GST/HST New Housing Rebate:
Completely gutting your home down to its bones and renovating it is a big task. However, it can offer some relief in the form of the GST/HST New Housing Rebate available across Canada. Substantial renovations are treated as ‘new housing’ as long as the market value of your house after renovations remains below $450,000.
- GST/HST New Residential Rental Property Rebate:
If you’ve bought a home and are planning on renovating it to rent it out, you may be qualified to receive the GST/HST New Residential Rental Property Rebate that is available across the country. As with the New Housing Rebate, the fair market value of the property needs to be less than $450,000 or $112,500 if its a residential lot or a site in a residential trailer park.
- CMHC Eco Plus and Energy Efficient Alberta
This is another scheme that is available across the country designed to help homeowner upgrade their homes to make them more energy efficient. If you use CMHC-insured financing to renovate for energy efficiency, you may be entitled to rebates of up to 25% of your costs if you go up to R-2000 standards.
Similarly, Energy Efficiency Alberta offers rebates on renovations that help you save energy in your home and make it more energy efficient, so you save on your renovations and energy bills too.
- Home Renovation Tax Credit
If you’re and Alberta resident aged 65 or older, or live with someone who is, you are eligible for the home renovation tax credit. It is also available for persons with disabilities. This tax credit is applicable to renovations that make your home more accessible or safer for older people or those with disabilities.
- Multi-Generational Tax Credit
This is like the home renovation tax credit mentioned above but is a federal tax credit program. It offers up to $7,500 in support for constructing a secondary suite for a family member who is a senior or an adult with a disability. The secondary suite must be a self-contained housing unit that includes a separate entrance, bathroom, kitchen and sleeping area and must be inhabited within 12 months of completing the renovations.
As you can see there are plenty of great schemes out there if you’re looking to renovate your home. Tartin Wood offers everything from complete home remodels and basement upgrades to single project upgrades and guarantee a 3-year limited warranty on our craftsmanship. We’re committed to creating a beautiful space for you and your family. What’s more is that we can help with financing too.
Get in touch with us and let us know what you need.