Are you prepared for the financial implications of a new addition? Have you considered the increased utility expenses and additional taxes? Expanding your living space may seem appealing, but it’s essential to acknowledge the potential rise in living costs. While some contractors may not highlight this aspect, it’s crucial to factor it into your decision.
Let’s say you’re planning to add 600 square feet to your existing 1500-square-foot home, which currently incurs $9,000 in annual taxes. That equates to roughly $6 per square foot for taxes. With the addition, bringing your total livable square footage to 2100, you’d face an additional $3600 in annual taxes, based on estimates. This increase is due to the higher assessed value of your property resulting from the added space.
Unfortunately, there’s no straightforward way to avoid this. While there might be a temporary delay in reassessment, municipalities typically catch up eventually. If you can afford it, that is great. Expanding your home comes with both benefits and costs—a double-edged sword, so to speak. While you satisfy your desires for more space, you also incur additional expenses.On the other hand, remodeling the interior of your home without expanding the footprint won’t necessarily increase your property taxes. It all depends on what the new space is used for. Remodeling basements or attics for storage is often more cost-effective since the basic structure is already in place and accounted for in the property’s gross area.
However, it’s essential to adhere to building codes, including ceiling height requirements, to ensure safety and compliance. Failure to meet these standards may limit the space’s use and potentially affect your property’s value.
Governmental regulations and taxes are inevitable considerations when expanding your property. Whether you’re adding square footage or remodeling existing space, careful planning and adherence to safety standards are important. Ultimately, while you may own the property, you’re subject to regulations and assessments that influence its use and cost.
All problems have a solution, and if you’re thinking about remodeling your basement or adding a home addition, kitchen remodel, or bathroom remodel, Aureli Construction can help you out. Call us for a free consultation. 617.480.6836 or email at info@aureliconstruction.com www.aureliconstruction.com
