When people consider a home renovation, one of the things they consider is the value the renovation will add to their home.
So, after years of watching interior design shows and more recently, photos and videos on Pinterest, I had wild ideas of how I was going to transform my home.
I did online research and called contractors and it didn’t take long to realize that the changes I had in mind wouldn’t necessarily add the value I had hoped. If I customize my home too much, it wouldn’t appeal to as many buyers when I wanted to sell.
The Appraisal Institute of Canada says renovations to the bathroom and kitchen offer the best value, with a recovery rate of 75 to 100 per cent of the amount spent.
The recovery rate is the likely increase a renovation will have to a home’s resale value. So, a $5,000 renovation that increases a home’s value by $3,500 has a recovery rate of 70 per cent.
The non-profit personal finance web site GetSmarterAboutMoney.ca offers five types of renovations that add value to a home:
- Investments in efficient use of energy (60 per cent recovery rate)
- New or improved kitchens and bathrooms (75-100 per cent recovery rate)
- Low-cost improvements – painting, wallpaper, etc. (50-100 per cent recovery rate)
- New windows or doors (50-100 per cent recovery rate)
- Basement renovation (50-75 per cent recovery rate)
- See more at: http://homeownership.ca/homeownership/5-home-renos-that-pay#sthash.GNGH9MCi.dpuf