A great article about return on renovations by Paul Baron.
Return on Renovations
So, your bathroom is beginning to look a little too similar to grandma’s and your baseboards have really taken a beating over years of kids playing, pets scratching and furniture being moved. Maybe you’re looking into creating that kitchen you saw in a magazine a couple of months back or that red paint in your dining room is making you twitch. Whatever the renovation may be, you’re ready to take it from your dreams to reality.
If you’d like to give your home a facelift, consider the renovations that will increase the market value of your home the most. That way, if and when you decide to move nests, you’ll get a pretty return on your investment.
Heather MacLean recently purchased her first house. She has renovated the bathroom, the exterior, the sunroom and the basement, as well as painted the interior with inviting, bright hues.
Now, a century-old, tiny wartime home is fit for the pages of a glossy magazine because of some very strategic renovations.
Heather starts by explaining how the exterior made the home look its age. “Paint was peeling off in places that made the house look very unmaintained.
We chose a warm tone of grey and a creamy ivory that gives the home great curb appeal,” she says, adding that they also replaced windows for increased efficiency. “Now the house looks loved instead of lonely.” She says that, without question, the exterior reno added value to her house. “It’s the first thing you see and sometimes first impressions last a lifetime.”
In addition to the exterior facelift, Heather also invested in the bathroom and basement, two high-impact spaces.
“The bathroom felt old and tired. By adding new fixtures, tile and paint, she created a room she actually wants to spend time in. “We believe it added value to our house by creating a relaxing, functional environment,” she says.
As for the rustic, stone basement, she put up drywall, installed shelves for organizing her crafts and canned goods and created a cozy music room that doubles as a second spare room. “It creates square footage where there was just dead, yucky space.”
According to Style at Home, some of the most popular and high-impact renovations can payback a pretty penny for your investment:
Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 100%
Interior painting: 50% to 100%
Expansion: 50% to 75%
Hardwood floor installation: 50% to 75%
Fireplace: 50% to 75%
Finished basement: 50% to 75%
Landscaping: 25% to 50%
As you can see, some renovations are smarter investments than others if you plan to sell down the road. But even small renovations can make a big impact in our current economy, says the Appraisal Institute of Canada. The AIC also suggests that among the most worthwhile home renovations and improvements are the energy efficient ones, such as replacing old windows and doors for better home heating efficiency. Many homeowners are seeing the long-term benefits of green renovations and are willing to pay more for the inherent savings on heat and power bills.
With her renovations behind her, Heather is confident that when she decides to sell, she’ll see a significant return on her investments. The only problem now is she loves her renovated home so much she doesn’t want to sell.