Ahh, the sweet sounds of summer are back: nail guns, power saws, digging and demolishing. Ok, they’re not exactly sweet sounds, but they are certainly familiar to anyone who lives in Canadian suburbia. With reports of real estate prices being instable and fluctuating, it seems that everyone is running to the hardware stores to spruce up their homes in hopes to increase their property values.
Be careful where you decide to spend your renovation funds – not all renovations are equal when it comes to seeing a return on your investment.
Are you daydreaming of being able to walk outside in the heat of the summer and dive into the pool to cool down –a $50,000 pool renovation averages a 0-25% return on your investment. At best the Appraisal Institute of Canada (AIC) estimates that you’ll see a $12,500 increase to your property value.
Are you longing for evenings on the back deck with a group of friends? The AIC estimates a 25% - 75% rate of return on this investment. I say ditch the pool and buy more steak!
So where should you be investing your hard earned cash? The AIC estimates the following returns:
- Kitchen renovation 75% - 100% return
- Bathroom renovation 75% - 100% return
- Flooring Upgrade 50% - 75% return
- Interior Painting 50% - 100% return
- Installing Central Air 25% - 75% return
- Landscaping 25% - 50% return
For more estimates on your renovation return check out their website: http://component.aicanada.ca/e/resourcecenter_renova.cfm
When you're ready to invest in your home, give us a shout... we'll put you on the right path.