You may be
thinking about those spring-time projects that you will need to tackle this
year, like landscaping the garden, rebuilding a patio or fence, changing older
windows and doors, a new roof, or even remodeling your basement, kitchen or
bathroom. If you tune in to some recent popular
TV programs like “Extreme Makeover - Home Edition”, you will surely catch the
home makeover bug. If you live in a freehold house, you should
be spending an average of 1% of your home value annually, on maintenance, just
to keep it in good repair and to prevent it from declining in value, according
to “Home Buying for Dummies” by Eric Tyson and Ray Brown.
Renovating a
home, may also be an important consideration for you in 2010, if you are
thinking of listing your home for sale.
Remember that the right renovations can help you to maximize the resale
value of your home. The renovation
payback statistics were extracted directly from the Appraisal Institute of
Canada’s website and the data is current as of January 2010:
|
Top Four Renovations that will give you the Highest
Payback Potential
|
|
Bathroom Renovation
|
75%
- 100%
|
|
Kitchen Renovation
|
75%
- 100%
|
|
Exterior Paint
|
50%
- 100%
|
|
Interior Paint
|
50%
- 100%
|
|
Other Renovations Payback Potential
|
|
Basement Renovation
|
50%
- 75%
|
|
Construct a Garage
|
50%
- 75%
|
|
Exterior Siding
|
50%
- 75%
|
|
Flooring Upgrade
|
50%
- 75%
|
|
Furnace/Heating System Upgrade
|
50%
- 75%
|
|
Install a Fireplace
|
50%
- 75%
|
|
Recreation Room Addition
|
50%
- 75%
|
|
Window/Door Replacement
|
50%
- 75%
|
|
Build a Deck
|
25%
- 75%
|
|
Concrete Paving
|
25%
- 75%
|
|
Install Central Air Conditioning
|
25%
- 75%
|
|
Roof Shingle Replacement
|
25%
- 75%
|
|
|
|
|
Nine Renovations that will give you the Lowest
Payback Potential
|
|
Asphalt Paving
|
25%
- 50%
|
|
Build a Fence
|
25%
- 50%
|
|
Install a Home Theatre Room
|
25%
- 50%
|
|
Interlocking Brick (walkways)
|
25%
- 50%
|
|
Interlocking Paving
|
25%
- 50%
|
|
Landscaping
|
25%
- 50%
|
|
Install a Whirlpool Tub
|
0%
- 50%
|
|
Install a Skylight
|
0%
- 25%
|
|
Install a Swimming Pool
|
0%
- 25%
|
|
|
You can check
your renovation investment plans using the Appraisal Institute of Canada’s
on-line tool. The name of this tool is
RENOVA and it is an excellent resource for homeowners. You may visit the site by going to this website:
http://component.aicanada.ca/e/resourcecenter_renova_all.cfm
Remember that
the referenced website link is only a guide, and you should always carefully
consider that proper appraisal values and returns can be provided by an
accredited appraiser holding a CRA or AACI designation. It is also important to mention that an
appraiser will also assess other factors, about the home to complete accurate
appraisal results, for example, the neighborhood, recent real estate activity,
lot, location, etc.
Canada AM has
been running an informative real estate market series that commenced on January
25, 2010. Featured on Tuesday’s program
was Mr. Ed Saxe of Edjline Appraisal Services.
Mr. Saxe is a certified Canadian Residential Appraiser as well as the President
of the Ontario Association of the Appraisal Institute of Canada. Mr. Saxe discusses that the number one
investment returns come from kitchen and bathroom renovations, however, as a
homeowner, he advises that discretion is required when spending. Mr.
Saxe advises homeowners to carefully consider just how much they are spending
and where they are spending. For
example, he mentions that you would not be wise to spend $50,000 on a kitchen
renovation if you are living in a home that is only worth $200,000. A home renovation should be relative to the
market and the neighborhood in which you live.
You can view the current live video clip at the following link:
http://watch.ctv.ca/news/top-picks/added-value/#clip259603
This blog post was written by Elizabeth Blair of Mortgage Edge.
Elizabeth
services mortgage clients in Mississauga and all over the Greater Toronto area.
You can
contact Elizabeth directly by phone at (905) 510-5785
by email at
eblair@mortgageedge.ca
or you visit
her website at:
www.missmortgage.ca
Lic #
M08005880 / Brokerage Lic # 10680
Comments