Which renovations go right to your bottom line?
Whether you are looking to buy a fixer-upper or renovate your existing home to improve the quality of life for you and your family, it’s worthwhile to understand which home renovations can help boost the value of your home and go straight to your bottom line. According to the Appraisal Institute of Canada (AIC), the top four renovations with the highest return on investment (ROI) include:
- Updated kitchen – the kitchen is almost always the heart of the home, so it’s no surprise that kitchen renovations consistently provide the best return on your renovation investment. If payback is important to you, keep the project in line with the style and quality of the rest of the house and neighbourhood.
- A sparkly bathroom – bathroom renovations are also very reliable when it comes to boosting the overall value of your home.
- Fresh painting – whether it’s inside or outside, a fresh coat of paint can work wonders on the overall impression of your home. If you are looking to sell, choose neutrals that have wide-ranging market appeal.
- Focus on decor – updating lighting and plumbing fixtures, counter tops, and replacing worn flooring or refinishing hardwood floors are also definite ROI winners.
Of course it’s also important to budget for those renovations that are necessary just to maintain your home’s worth. According to the AIC, it’s essential to replace the roof, update heating/cooling systems and replace windows/doors as they near the end of their life expectancy.
The AIC also lists finishing the basement, garage improvements, sun rooms and other additions, decks and fences, and landscaping as the top renovations that generally offer the highest enjoyment value.
Brian Madigan LL.B., Broker