Many homeowners are choosing to renovate, instead of move, to get the home they want, says Scott McGillivray, a real estate investor and host of HGTV’s Income Property.
“I find that more and more people right across Canada are looking for creative solutions to add more space so that they don’t have to move,” Mr. McGillivray says. But homeowners should carefully consider the return on investment before they begin any renovation, he says. While it depends on your personal situation, Mr. McGillivray says your money may be better spent with certain renovations over others.
While swimming pools and skylights might add a “wow factor” to your home, they usually won’t drive up the selling price the way a new kitchen or bathroom would, he says, warning that you shouldn’t over-improve for the neighbourhood. “You don’t want to build a $150,000 custom kitchen in a $200,000 home. You have to be realistic about your needs, and where money is best spent.”
Here are a few example of getting the biggest bang for your renovation buck:
Bathrooms: Modernizing a bathroom by adding new fixtures, a low-flow toilet, space-saving cabinets, new tile or adding a master bedroom ensuite can all add value, often at a reasonable cost.
Kitchens: Upgrading cabinetry, countertops or appliances, or enlarging a small or poorly laid out kitchen can add a premium to a home’s value.
Finished Basements: A finished basement can add space in your home by one-third.
Flooring: Ripping out old carpets or refinishing a hardwood floor can be a selling point.
Renovations are a big investment and making the right decisions on which projects will actually increase your selling price is something to consider for your future.