Which Renovations Are Worth Their Cost?
There are at least two reasons for doing any renovation project :
• to increase the value of your home
• to increase the liveability of your home
It is very important that as part of your renovation planning you weight these two aspects.
Remember that the value of a renovation, like the value of anything, lies in the eyes of the buyer – so even though you place a high value on your decorating or design ideas, potential buyers in the future may see things differently. For this reason, you must carefully consider your motivations when starting your reno to ensure your investment in time and money provides you the best retune (in dollars and satisfaction).
Here are typical financial returns other renovators have realized on their projects :
|
Add a new bathroom |
90% |
|
Add a fireplace |
90% |
|
Interior facelift |
90% |
|
Remodel / update kitchen |
75% - 85% |
|
Hardwood flooring |
75% |
|
Add a room |
60% - 80% |
|
Remodel bathroom |
70% |
|
Add a wood deck |
70% |
|
New siding |
70% |
|
Replace windows |
60% |
|
Swimming pool |
35% |
Note that these values all assume that the quality of the renovation is top-notch.
Now matter how much a homeowner spends on their renovations, one cannot expect to get significantly more than the average price other homes are selling for in the same neighbourhood.