In the year after Canadians buy a home, they tend to spend around $21,000 (on average) on renovations alone. This is, as was explained in last week's blog, largely due to an increase in television programming centred on renovations, house-flipping, and buying/selling homes. It is not exclusively because of this, however. The last big "building boom" that happened in Canada was in the mid to late 1980s, making most of the updates done then out of date or even worse dangerous now. Some houses have been re-done wholesale because of burst water pipes, failing electrical, or the simple desire to update the style and framing. These renovations and redo's are not completely out of necessity, though, and some are done before the sale in an effort to raise the value of the property. This figure is shifted slightly as many homebuyers are now joining the rising craze of "house-flipping", the practice of purchasing a home, fixing it up and renovating it, then selling it for a much higher price than they initially paid a few months later. Also it is not only buying and selling that may prompt one to spend on renovations, for some simply watching the house prices rise is enough. Even the condo renovation cycle is shortening.
Stay tuned! Part 3 is on the way!