Feb

13

I want to renovate my home! How much return will I get on my investment?

Filed Under Brampton, Buy, Condos, Homes, Real Estate, Renovations, Sell, The Numbers 

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It seems that nowadays everyone wants to upgrade their home. With the recent advent of home flipping shows and renovating TV specials, homeowners are looking to add some value to their homes by investing a little money and a little labour. It also helps that Brampton has two brand new Lowes stores in addition to the existing Home Depot and Rona warehouses. It almost seems too easy to venture a few steps and bring home some building supplies!

The Brampton real estate market is an accurate image of the Canadian real estate market. According to surveys, nearly two thirds of homeowners intend to undertake renovation projects this year alone! If you’re looking to make some additions or changes to your home, you’re probably wondering what you can do to get the most back when you sell your home. Well, below is a general guide to how much you can expect to get back on your renovation investments. Refurbished kitchens and bathrooms are still the best intermediate investments, while a fresh coat of paint is still the most inexpensive way to boost the value of your home.

This list is only a guide! Consult experts if you intend on making renovations and do your homework.

  • Installation of hardwood floors - 50% to 80% return
  • Interior painting - 50% to 100% return
  • Roof replacement - 50% to 80% return
  • Additional room (ie. family room) - 50% to 75% return
  • Skylights - 0% to 25% return
  • Kitchen upgrade - 75% to 100% return
  • Doors and windows - 50% to 75% return
  • Wood fence - 25% to 50% return
  • Pool - 10% to 40% return
  • Deck - 50% to 75% return
  • Fireplace (wood or gas) - 50% to 75% return
  • Central air conditioning - 50% to 75% return
  • Landscaping - 25% to 50 % return
  • Replace furnace or heating system - 50% to 80% return
  • Finished basement - 50% to 75% return
  • Bathroom upgrade - 75% to 100% return
  • Asphalt driveway - 20% to 50% return
  • Interlocking stone driveway - 25% to 50% return

There you have it. Keep in mind that any renovations you do undertake should be relative to the value of the home. It wouldn’t make any sense to add a $30,000 kitchen to a $100,000 home. Also, avoid projects that will set your house apart from other properties in your neighbourhood. The Appraisal Institute of Canada warns that: “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.”

Happy renovating!

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Comments

3 Responses to “I want to renovate my home! How much return will I get on my investment?”

  1. Lake Blue Ridge Homes For Sale on February 14th, 2008 6:34 am

    What a great list I have never seen a list like this but I will use it for a reference. How does the saying go if you own the worst house on the block okay to invest in upgrades. If you own the best house on the block do not invest in upgrades unless you plan to live there forever and don’t expect a return on your investment.

    I love the list though very helpful!

  2. Blue Ridge Georgia Cabin Rentals on February 15th, 2008 8:24 am

    I think adding new wood floors along with a kitchen and bath upgrade are the three most important upgrades that will show your return when you go to sell and will have your proud to enter your home and enjoy with friends and family.

    The wood floors open up a place and give a look of elegance. The remodel kitchen brings it up to current appeal with granite. People want retreat bathrooms with marble tiles and glass shower surrounds and tubs. Even if the other rooms are small in house these three alone will make the house look new.

  3. Real Estate In North Georgia Mountains on February 20th, 2008 7:55 am

    It would make sense to get a CMA current market analysis of the property and comparables in the area as to make an informed decision to renovate and how much to invest to recoup at time of sale. The list is a wonderful guide to a renovating project and can be the basis for a projected investment.

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