What Do You Value? How Renovations Add Up...
As a mortgage professional, clients often ask my opinion about how an upcoming renovation will affect the value of their home. Here is a short article outlining my thoughts…
When considering renovating, home owners should measure the cost of the renovation against the value the renovation will add to their home. While some renovations add significant value, others add only modest value. If you plan to renovate consider what “value” means depending on your goals. Do you want to sell your home and maximize your profit or do you want to live in comfort, minimize your environmental impact or simply update the look of your home? If you can find a balance between all these factors you’ll likely be making your best investment.
If you plan to renovate for comfort and are certain you’re not going to move, spend and have fun because you deserve it! Your home is your castle – you find solstice there, you work hard to keep it and it’s nice to feel good about the place you call home. If you have any reservations about your housing future, don’t forget “balance”.
If you plan to sell, ensure the renovation is best suited for the property. Certain renovations add value in some markets while others don’t, so the neighbourhood needs to be considered. If you turn a fixer-upper into a high-end modern home be sure it doesn’t stand out of the crowd because it’s likely you won’t recoup all of your money. If you’re renovating a house with limited value, it’s best to stay with products and designs common to other houses in the neighbourhood. Spending $30,000 on a kitchen in a small starter home probably won’t add $30,000 to the resale value. However, the same renovation on a large house in an upscale neighbourhood may add even more than that to the value of the home.
Consider obtaining professional advice from the very beginning. You may be capable of completing the renovations on your own but good advice always pays off. With the right advice the renovation should progress smoothly and on budget. It will also save time, money and will be in line with your renovation goals.
Deciding how much money to spend on your home can be complicated and how the renovations will affect the “value” of your home will depend on how much thought and planning goes into the project. The bottom line is your home can be a tremendous investment, for both your pleasure and profit. The decision to have one or the other or both is yours…
Chris Marriner, B.Mgt, AMP
CENTUM Professional Mortgage Group
“Mortgages made simple…”
Posted by Chris Marriner
on April 1, 2011