In this conclusion to the three part blog on Canada's rising trend of renovations and house-flipping, we'll take a look at some more reasons Canadians are leaning more and more toward renovations and how the boom is affecting inner-city economy. For more information please visit the Macleans Magazine article: The Dark Side of Canada's Renovation Boom at www.macleans.ca/economy/realestateeconomy/the-dark...
The renovation boom does not only apply to the young and the rich. Baby boomers, and soon to be retirees are also looking more and more toward renovating rather than downsizing to a condo or an apartment. New condo development downtown is also driving a boom in renovating restaurants and other local businesses and causing even more people to be drawn into the core of the city, and the circle goes on. With home improvement giant Lowes moving into Canada from the United States a price chopping war had begun, making it easier and easier to complete what were once costly jobs at a relatively reasonable rate. This, rather than stopping the spending in advance, is causing Canadian homeowners to spend more now; opting for the lower interest rates and the thought of selling before prices drop.
This may not be the ideal method; a lot of Canadians do not realize that people doing the renovations on TV have the benefit of some support from the crew and there is a lot at stake when undertaking large renovations. Some, according to Macleans magazine, are virtually mortgaging their futures for the sake of "keeping up with the Joneses". From 1990 to 2010, Canadians borrowed about $8 Billion to do renovations; in 2013 roughly 34 percent said they would take out a Home Equity Line of Credit (HELOC) to complete the jobs, a jump of 20 percent from the previous year!
What should you take from this? As with anything, seek advice from your local expert before undertaking any large project. If you're looking to re-design a home for pre-retirement ensure you have all the facts before you start, consult a housing specialist.