Canadians are investing in house renovations like never before. Apparently, two-thirds of homeowners plan to undertake renovations in 2015. While most intend to spend modest sums, others say they’re going all out – home theatres, luxurious materials, Jacuzzis – even a $60,000 kitchen won’t be unusual!
But how much of their investment in house renovations will be recovered when they sell? Homeowners are inclined to undertake renovation projects to improve their quality of life, meet their needs, or simply pamper themselves with luxury. However, even if you renovate primarily for your sake, you should also try to weigh up the post-project increase in your home’s value.
The Appraisal Institute of Canada surveys its members every year and compiles a list of house renovations that produce the best return on investment. Refurbished bathrooms and kitchens head the payback list year after year. 75 to 100% of the outlay of these projects can be recouped on resale. Last year, pool vendors also reported that business boomed.
However, such positive evaluations don’t hold true always. For example, a kitchen renovation in appallingly bad taste, costing $25,000, could adversely affect the sale of a home. Therefore, if you’re renovating to sell, you need to plan for changes that are going to meet the needs of most potential buyers, and make sure the modifications are up to date. Beware of passing fads!
At Southshore Group, we offer a variety of residential construction services in and around Barrie, ON, including interior & exterior home renovations. We can also help with new construction such as drywall, framing, stone veneer and trim carpentry.