One reason so many people renovate is to improve the comfort or style of their home. People want to make their home look fresh and modern.Another is to improve the structure of their home. This should have greater priority than improving the look.
You know that a leaky roof will ruin your home if it isn’t fixed. The structure of your home depends on it. But according to the Appraisal Institute of Canada, the big reason so many Canadians are now renovating is simple: RESALE VALUE. It seems everyone is trying to capitalize on the hot real estate markets across Canada and often renovate prior to selling to give their home’s sale price an extra boost. But do these types of pre-sale renovations actually payoff?
Here are the facts as reported by the Canadian Mortgage and Housing Corporation (CMHC). Renovations create new value in your home, especially for re-sale.
According to the Appraisal Institute of Canada, the following projects offer the top, average and lowest payback of all home renovations:
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%)
Six lowest payback potentials:
Landscaping (25-50%)
Interlocking paving (25-50%)
Building a fence (25-50%)
Asphalt paving (20-50%)
Adding a swimming pool (10-40%)
Installing a skylight (0-25%)
But while these are all interesting numbers, they are really only relevant if you are renovating just prior to selling your home. If you are renovating to improve the livability of your home or have a longer timeline before your home goes on the market, then the best measure of payback is how the changes enhance your lifestyle. Remember, creating an open concept kitchen and dining area might make family meals more intimate and enjoyable for all. That is a renovation with immeasurable payback!
