Home Renovations

During the past 12 months or so individuals have been forced to work from home, socialize less and limit (or eliminate) travel.  These restrictions, in response to the global pandemic, have meant that Canadians are spending less and saving more.  As a result, people have been using funds typically earmarked for travel or entertainment to make improvements to their home.  One question we are often asked is which renovations add the most value to your home. 

 

Whether you are looking to buy a fixer upper or upgrade your existing home to improve your quality of life, it is vitally important to understand which renovations can boost the value of your home and go straight to your bottom line.  According to the Appraisal Institute of Canada (AIC), the top four renovations with the highest return on investment include:

 

  • Updated kitchen: The kitchen is almost always the heart of the home, so no surprise this reno adds the most value.
  • Sparkly bathroom: always a reliable way to add value.
  • Fresh painting: Indoors or outdoors, a fresh coat of paint can add to the overall impression of your home.
  • Refreshed décor: updated lighting and plumbing fixtures, refinished hardwood floors, updated counter tops and kitchen hardware are all definite winners.

 

A few things to consider when embarking on a home renovation – first, you don’t want to complete renovations that will price your home out of your neighborhood.  Second, when you plan to sell, focus on those updates that have wide ranging appeal.  Lastly, when selling, make sure to declutter!

 

According to AIC, always remember to budget for the necessary renovations to maintain the value of your home – things like replacing the roof, updating heating and cooling systems, replacing windows and doors, and updating electrical. 

 

A professional mortgage broker can help you finance your renovation project so you can maximize your bottom line.  There are many options available including a mortgage refinance, home equity line of credit, second mortgage or personal loan. 

 

Chris Ball

Senior Financial Planner

Assante Capital Management Ltd.

 

 ***Information courtesy of Mark Hurley, Mortgage Broker, Mortgage Intelligence

Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.

This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances.

 

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