Renovations That Pay Off
Sooner or later, all properties benefit from being renovated: either because changes are necessary or because we want to make our lives more convenient or more comfortable. Or perhaps we want to appeal to potential buyers. In this particular case, some renovations are significantly more profitable than others.
A varying return on your investment
According to the Appraisal Institute of Canada, kitchens and bathrooms are the rooms that are most beneficial to renovate: we all spend time in these rooms at one point or another during the day. The yield on high-quality renovations in the kitchen or bathroom can reach 75 to 100% of the costs we incurred. In other words, when we sell our property we can expect to recover 75 to 100% of the amount we invested. These renovations thereby protect the value of your home.
The same theory applies to all of a home’s essentials: new outdoor siding, an improved heating system and replaced doors and windows provide a return of between 50 and 75%, while the installation of central air conditioning and new roof shingles provide a return that fluctuates between 25 and 75%.
Another element that ensures an attractive return on your renovation costs is exterior or interior painting, which provides a return of 50 to 100%. Choosing neutral tones that will be universally liked can provide you with a substantial return on your investment. This is followed by new floor coverings and a finished basement, whose returns are considered average, at 50 to 75%. The building of a patio, from 25 to 75%, as well as the landscaping of the yard and the installation of a fence, from 25 to 50%, complete the picture.
Renovations that have little effect on property value
Although installing a pool provides hours of enjoyment during the summer months, it unfortunately does not generate the value that was initially invested in it, as it has a return on investment of 0 to 25%. The same applies for a skylight. However, a spa can provide a rate of return that varies between 0 and 50%.
Experts also recommend avoiding excessive luxury. So, be rational and do not hesitate to make yourself happy in your home. After all, your home still belongs to you until you decide to sell it.