Oakville, Ontario has grown over the years. From 165,000 residents in 2006 to 182,000 in 2011, according to the latest census, Oakville has grown by over 10% in just 5 years.
The town of Oakville has reached a plateau where there is no more room available for substantial construction of subdivisions below Dundas Street, leaving real estate developers to take aim at smaller, older communities that are located in desirable neighbourhoods. Therefore, everyday Oakville’s real estate developers are creating a more modern landscape one house at a time. Older homes are being purchased for their large properties and knocked down. In their place are often stone and stucco two- storey, open concept homes boasting high ceilings, home theatres and landscaped backyards equipped with pool, hot tub, patio, bar and all the amenities needed for entertaining.
Central Oakville is currently experiencing this type of growth. Homes can only last so long and the 70 year old homes that have occupied Central Oakville have become obsolete and can no longer meet the needs of today’s family.
Capitalizing on this trend is the small-scale developer, or otherwise referred to as the house flipper. The fix and flips have become quite popular and a great way to make some money if done right. The common rule when renovating is to focus on bathrooms, kitchens and floors. Central Oakville’s median sale price jumped from $557,000 in 2013 to $616,000 in 2014. To better understand how to increase value in a fix and flip we compare three kitchen renovations, a great way to increase the value of a home. Our before and after pictures come from Oakville Kitchen Designers located at 609 Ford Drive.
This traditional 2 storey home was updated to be able to easily entertain guests becoming more user friendly. With updated Miele stainless steel appliances, rift cut oak and Quartz counter tops, it is easy to see how a modernized kitchen can add tremendous value to a home.
The layout of this home stayed mostly the same but by adding dark maple espresso stain, granite antique brown counter tops, a custom wood canopy over the peninsula with puck lights inside and stainless steel appliances, this renovated kitchen has added value and made this home more livable and desirable. Overall this new kitchen gives this home a sleeker and more appealing look for a buyer.
For the family that likes to entertain, this bungalow now boasts an open concept kitchen so that when cooking, guests may still interact with the host. This kitchen’s renovation consisted of knocking down three walls and adding Brazilian hardwood, maple cabinetry, quartz counter tops and all new appliances.
By comparing these before and after pictures, it is easy to see how modernizing a home can add tremendous value. Optimizing available space and keeping a constant theme throughout a home will ensure that a home sells fast and for a high price. It is important to keep in mind the market and the neighbourhood in which a home is located. Each neighbourhood will have a point of diminishing returns. If the average home in a neighbourhood with a fully renovated kitchen is selling for $50,000 more than a home with an unfinished kitchen, it wouldn’t be wise to spend $60,000 on a kitchen renovation. A $30,000 renovation in that market would be more beneficial, yielding a $20,000 return.
Many home buyers in Oakville are buying in areas like Bronte and Central Oakville, renovating and enjoying a large property while increasing the value of their investment. Although Oakville has mostly stopped building new subdivisions, there is still plenty of opportunity to for steady growth in many areas. Call your local Realtor to explore the many options available in Oakville to grow fruitful investments in real estate.