Significant upgrades or additions to a property that extend its useful life or increase its market value, as opposed to routine maintenance or repairs.
Capital improvements include projects like kitchen remodels, new roofing, HVAC replacement, pool installation, or structural additions. Unlike regular maintenance expenses, capital improvements are added to the property's cost basis, which can reduce capital gains taxes when the property is eventually sold. They also help the property stay competitive in luxury vacation markets where buyer expectations evolve over time.
GoForth, a luxury co-ownership company, manages capital improvement planning as part of its asset management services. When upgrades are needed, the cost is shared equally among the four co-owning families and funded through the property's reserve account. GoForth identifies which improvements deliver the strongest return on investment, ensuring the home remains a top-tier vacation property that continues to appreciate.