This past weekend we got to spend some time down in Oliver for a hockey tournament, it was his first tournament, and was great to see the kids battle the pool legs and finish the weekend strong.
The Top 5 Renovations for the Best Return on Investment
In this market, the decision to move in my opinion has never been tougher. Sure you can get a pretty penny for your current home, but, and it's a biiiiggg but, where will you live? My family and I posed ourselves this question, what is worse, moving or living in a home during a renovation? We knew our current house was not the forever home we wanted to raise our kids, layout-wise, however, we love the neighborhood, and the thoughts of moving really weren't all that appealing.
The decision to sell and find a new home or to just make our home the way you wanted it? To piggyback on HGTV's TV show Love it or List it, we really did the reality version and decided we loved it.
The Appraisal Institute of Canada offers the top 5 renovations you should focus your money on to get the best return on investment.
Even if you still want to sell your home after the renovation these renovations will help increase the value of your home.
Here is one aspect to the renovation we completed, the kitchen
Before
During
After
5. Energy upgrades: Whether you're thinking about new energy-efficient windows, a new furnace, or solar panels on your roof, energy upgrades are a hot trend in home building and renovations, and typically bring with them at least a 50 to 75 percent return upon resale.
4. Closets: While it's hard to put an estimate on the rate of return a well-designed closet will incur, potential buyers consider closet space when taking a walk-through of a potential home. A well-designed, organized closet with ample storage space and other features is a great selling point. A small investment in new closet storage, shelving, hooks, and hangers can go a long way when trying to get the best return on your investment.
3. Floors: AIC confirms that you can count on payback of approximately 50 to 75 percent when you replace old or outdated flooring. Replacing aging hardwood and tile or installing new carpet or laminate can give your home a polished feel.
2. Washrooms: Similar to the kitchen, the washrooms in your home offer a nearly 75 to 100 percent return on investment. Even if you don't want to replace the tub and shower in their entirety, a new state-of-the-art showerhead, faucets, and other small renovations really make a difference in the long run.
1. Kitchen: There's no need to gut the kitchen entirely when you're looking to increase your home's value. Upgrades such as granite countertops, stainless steel appliances, new fixtures, lighting, or other minor aesthetic changes can go a long way. According to AIC's calculations, kitchen facelifts typically pay back about 75 to 100 percent of their cost, making them the most popular and beneficial home renovation investments.
Our family decided to do 1,2,3 and a bit of 4. It looks like Ikea threw up in our house.
It was not AIC's list, however, I would also argue that finishing off an unfinished space and adding on a suite should also be on the top of the list. Real estate in BC bases the square footage off of the finished area, if you take 200 square feet and finish it off you could increase the value by $40,000 to $60,000. As you are looking and thinking about renovations, it is a good idea to have a couple of different perspectives when deciding what to do. Get 2 or 3 local professionals in to get their thoughts and ideas, not only will this help with the brainstorming and idea generation but it will also give you a better sense of price point and what you are getting for your money. Suites are still nice to have even if you are not a fan of having a tenant. It helps increase the amount of money that a potential buyer can qualify for even if they don't want to rent it out. As well if you ever need to pull money out of your mortgage you can use the rental income to help.
If you want a second opinion for someone that has been there on a potential renovation from myself, feel free to reach out, no strings attached, I promise.
Have a great week and feel free to reach out with any questions!
-Mark