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And while the primary purpose of your principal residence is to provide a home for your family, most homeowners will also expect the value of their homes to increase during the time of their ownership.
Of course, no one can predict exactly how much the value of any given home might change. Market factors such as the economy, the location of your property and the balance between supply and demand in real estate. In recent years, markets such as Vancouver and the GTA have experienced tremendous growth, and while many homeowners have decided to upgrade their existing homes for their next dream home, many homeowners have decided to stay put and make an alternative choice — renovate.
Alternatively, some homeowners may be deciding to downsize as their family changes and the kids leave home. For those homeowners looking to transition into a new home within the next few years, they too may decide to renovate in hopes of boosting the value of their family home before selling and moving into the retirement phase of their lives.
Like anything in life — individual choices can give you more value for your dollar. It is no different when it comes to choosing the right renovation to maximize your investment!
Bathrooms and Kitchens
The most often discussed areas for renovations are the bathrooms and the kitchen. Most homeowners will agree that updating your bathrooms and your kitchen will maximize the value of your renovation dollars. It also doesn’t hurt that you get to enjoy a revitalised kitchen and refreshed bathrooms as the existing homeowner!
Upgrades to lighting and fixtures may not be too costly; however, amenities such as new countertops, cabinets or a whirlpool bath may require more money. Bathrooms and kitchens are frequent upgrade targets, and it is generally accepted that money spent updating these rooms gives you the best opportunity to maximize your investment. In many cases, you can make a significant impact with relatively inexpensive upgrades to fixtures and lighting, but anything beyond that will require a greater investment.
Renovating an unfinished basement can add additional living space to your home and can appeal to potential buyers looking for space for kids, room for other family members or area for a man-cave! While finishing a basement can be among the more expensive renovation propositions, a well planned and carefully budgeted basement renovation can provide your property with a leg up in value versus other properties in the area.
Renovations to Avoid
While the previously listed renovation ideas can certainly add a boost to the value of your home, some projects are perceived as negatives by potential buyers. Hot tubs and pools are examples of two projects that might make potential buyers think twice before making an offer on your home. While lounging in the sun by the pool is certainly appealing to many people, the maintenance costs and efforts associated with pools and hot tubs might make others think twice. For example, families with young children may have safety concerns with pools – potentially pushing them to look elsewhere on a potential home for their family.
It’s also not uncommon to see attached garages which have been converted into living spaces — however, consider that a buyer may see this additional living space as taking away space for their vehicle(s)!
Align Your Priorities
Finally, while these things may not add to your home’s “curb appeal”, it’s important that major items are in good repair. Things like the condition of the roof, as well as the age of your cooling and heating systems, are all areas that new buyers will carefully examine. If after conducting an inspection it is discovered that these critical systems costing thousands of dollars to replace are in poor shape, prospective buyers may insist on a lower purchase price, or may even pull their offer altogether.
If you’re thinking of financing your next renovation project or have questions about the projects you have in mind, fill out the form at the top of the page and speak to a MonsterMortgage.ca mortgage expert today!