Renovations that Pay!
Sunday Sep 11th, 2016Share
Renovations that Pay!
A few of you have been asking lately about which renovation projects provide the best return on investment.
Here are a few ideas from a few sources including Scott McGillvray, the Income Property TV host and from the magazine Style At Home.
Your primary aim in any renovation for your home should be to increase your enjoyment of your home, but it is prudent to be mindful of which investment will add to your home’s equity as well.
Kitchens and bathrooms consistently top the list of renovation projects that recover their cost, sometimes to over 75% of the project outlay. Your changes should be current, yet not based on hot, but possibly passing fads. Your reno needs to be in keeping with your neighbourhood as well. The Appraisal Institute of Canada posts this sage advice on their web site: “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”
Here are some home improvement trends that we are seeing buyers respond to:
Home theatres: Movie night in style.
Hardwood floors in the kitchen: Hardwood is sought after throughout the house, but in the kitchen is becoming more popular as well.
Laundry room on the main floor: People like accessing their laundry on the main floor vs in the basement or top floor which often involves giving up linen storage space for laundry.
Hardware and fixture upgrades: Items like faucets, sinks, toilets and drawer pulls are relatively small ticket items with big returns as they can update a space by making it feel more clean and modern.
Spa-like bathrooms: A small space where materials like unique tiles or a funky faucet can make the room pop. You can have big impact with less materials than in bigger spaces. Soothing palettes and clean lines with modern finishes help create that spa feel that people are looking for.
Kitchen Renovations: Perhaps the easiest reno to get out of hand, but definitely provides the biggest return on investment of any room in the house. If you can avoid custom cabinets, you can manage the costs more readily. If you are considering resale, countertops and backsplash should reflect current market preferences for colour and materials. Cool neutrals like white and grey and stone countertops are in demand in the GTA. Stainless steel appliances are still the gold standard. Kitchen islands are very popular, whether used as a breakfast bar or for meal prep, the extra counter space and storage is in high demand.
Stay tuned for some ideas on exterior renovation ideas that offer a return on investment in my next blog!