Without careful planning and management, your dream renovation can be a nightmare.
There are many reasons for wanting to renovate. Sometimes you simply need a change. Other times, it can be pure practicality- if you wake up to a water-stained ceiling you know you need to do something about it.
Lifestyle renovations improve your home and you way of life and might involve building a sunroom or converting unused spaces, such as an attic of unfinished basement, into living quarters to meet your needs.
Retrofit projects focus on your home’s shell or mechanical systems and include such things as upgrading your insulation, heating system or exterior.
Maintenance and repair renovations protect your home and include caulking windows, re-shingling your roof or replacing your eavestroughs.
Whatever your reasons for renovating, the rewards are many:
- higher market value and increased equity
- improved comfort for you and your family
- space suited to fit your lifestyle
- added convenience
- higher esthetic appeal
- improved safety
- energy savings
- greater privacy
- healthier indoor environment
- ease of maintenance
- the pleasure of a fresh new look
Before you pick up a hammer or make a trip to the store, take some time to read up on or view a video on home renovation. Talk to people you know who have renovated. Mistakes on paper are easy to fix and don’t cost anything but mistakes on the job are not, so remember the old saying: “ Measure twice, cut once.”
Be clear about what you expect from the renovation- draw the line between what you really need and what you’d like to see.
Just about any renovation adds to or protects the equity in your home, but keep in mind that kitchen and bathroom renovations, followed by painting, generally provide the greatest returns when you sell. Always think about if you will get your money’s worth out of your renovation.
For example, if you are upgrading your heating, lighting or plumbing systems, your home will be more energy efficient and could actually pay for the upgrades over time. If you improve your wiring, home fire prevention or add a security system, you could save on insurance premiums.
Realize that you can overdo a good thing- expensive renovations such as high-end upgrades or additions in an area of more modest homes will not be recoverable when it’s time for you to sell within a few years.
Consider the following payback range of typical renovations:
TOP FOUR GREATEST PAYBACK POTENTIALS:
- Bathroom renovation (75 – 100%)
- Kitchen renovation (75 – 100%)
- Interior painting (50 – 100%)
- Exterior painting (50 – 100%)
TEN AVERAGE PAYBACK POTENTIALS:
- Roof shingle replacement (50 – 80%)
- Furnace/heating system (50 – 80%)
- Basement renovation (50 – 75%)
- Recreation room addition (50 – 75%)
- Installing a fireplace (50 – 75%)
- Flooring (50 – 75%)
- Constructing a garage (50 – 75%)
- Window/door replacement (50 – 75%)
- Building a deck (50 – 75%)
- Central air conditioning (25 – 75%)
Information provided by the Appraisal Institute of Canada, 2006
Renovating is hugely popular, and a great alternative to moving in an uncertain economy. The best way to proceed is with a careful plan which considers not only immediate costs and benefits of your renovation, but also your future return on your investment.
Tammy Dufault
Century 21 BJ Roth Realty Ltd.
