Forget the roller coaster stock market ride. For most Canadians, a home is a solid, familiar investment. Over time, your home will increase in value at a steady, safe rate.
Some renovations can help to improve the value of your home. Whether you are updating that 40’s style kitchen, removing green shag carpeting from the bedroom, or adding exterior curb appeal by applying attractive, maintenance-free siding, you will increase the market value of your home.
When renovating your home, here are few things to consider.
If you are financing an improvement, consider your budget. Keep your monthly payments within your limit.
Consider the type of renovation. You could overdo a good thing if you spend too much on less favorable items. Perhaps you are planning to move in a few years and hoping to recover the costs. Canada Mortgage and Housing Corporation suggests the following as a payback range of typical renovations:
- Kitchen 68-74%
- Bathroom 64-71%
- Interior painting 62-66%
- Exterior painting 62%
- Main floor family room 49-56%
- Finished basement 50-52%
- Upgraded heating system 48-50%
- Landscaping 45-49%
- In-law or rental suite 40-42%
- Central air conditioning 38-43%
- Energy-efficient upgrades 33-39%