Renovations = Added Value?

Many Canadians are choosing to renovate their homes as opposed to moving. The entire family may be attached to the home and location but have out grown it or simply just wish to enhance their lifestyle. The difficulty is finding a balance between what you would like and the financial resources available.

You must begin by setting priorities. The whole family should be involved in the planning process and careful consideration should be given your changing needs over the years.

Take advantage of what you already have. Perhaps rearranging interior walls and adding windows may provide the spaciousness and light you are seeking without the cost of an addition. You may be able to refinish flooring and other finishes such as cabinets rather than replacing.

You may also plan to do the renovations in stages as you can afford it. The homes infrastructure should be sound and up-to-date so the new work does not have to be redone. Electrical, plumbing, heating and ventilation systems should meet current standards. Remember to consider other repairs such as roof replacement which may come up during the renovation process.

Structural and mechanical renovations should be left to the professionals although many handy homeowners can paint, landscape and do other finishing work themselves. Careful planning and consulting professionals is the basis for getting full value for your renovation dollars. Call your local Home Builders Association for more information.

Do Renovations Add Value to Your Home?

Renovations will enhance your familys lifestyle. Whether it adds to your market value is another question. If you love your property and intend to keep it for a long period of time you should do what your family will enjoy.

Some renovations contribute more to the propertys appeal and value than others. The following are the findings of the 1999 Appraisal Institute of Canada National Home Value Survey and indicates some renovations will result in a higher average payback at the time of sale.

-          Interior painting and dcor (73%)

-          Kitchen (72%)

-          Bathroom (68%)

-          Exterior (65%)

-          Flooring upgrades (62%)

-          Window and door replacement (57%)

-          Main floor family room addition (51%)

-          Fireplace addition (50%)

-          Basement renovation (49%)

-          New furnace or heating system (48%)

You should also avoid undertaking renovations which increase your homes value significantly beyond the value of surrounding homes. Your home would then be an over-improvement and recovering your renovation costs will be more difficult.

There are many ways to finance renovations as your financial institution can advise. Appraisals can be completed on an as is and as improved value based on plans and specifications.