If you are considering
a home renovation, make sure you research your project
carefully to ensure you are making a wise financial decision
and getting the biggest bang for the buck...
Not
all renovations are what their cracked up to be.
When deciding what type of renovation to undertake and
how much to spend, consider the payback on your investment.
In general, renovations are unlikely to deliver a dollar-for-dollar
return on investment, sorry but it's the truth. That's
not to say that doing renovations is a waste of money,
rather it is to say that you should balance your family's
enjoyment of the home with your desire to make a wise
investment decision.
When determining the scope of your renovations, "keep
it simple stupid". Forget about the luxuries
and keep the renovations general and to projects that
improve the homes appearance.
Probably the greatest return on investment is painting
and decorating. Why? Because they play on people's emotions
and when you play with emotions, people tend to do things
they wouldn't always do. It's amazing that if carefully
throughout, a can of $30.00 paint can potentially bring
back hundreds and sometimes thousands of dollars.
Here's a good rule of thumb when it comes to renovations...
Don't be the best on the block, you may be overpricing
your home for the neighborhood. From an economic point
of view, make your home no more than second best in the
area.
More below...
Thinking of renovations?
Here is a list of
the top 10 renovations and their average return on investment
as determined by the Ontario Association - Appraisal Institute
of Canada.
|
Top
10 renovations
|
Average
return
on investment
|
| |
|
|
Kitchen
|
78%
|
|
Interior
Painting(basic)
|
74%
|
|
Bathroom
|
74%
|
|
Exterior
painting
|
63%
|
|
Family
room addition
|
55%
|
|
Central
air conditioning
|
52%
|
|
New
heating system
|
50%
|
|
Finished
basement
|
49%
|
|
New
windows
|
48%
|
| Landscaping |
35%
|
