Home Improvements that Add (the most) Value
Whether you are looking to create your dream home office, look to add more space as you spend more time at home, or simply update a bathroom or your backyard living space, Canadians are using the equity from their homes to enhance their personal space.
If you are considering home renovations this year, you’re not alone. In 2020, Canadians spent $80.1 billion on updating their existing homes, which was more than was spent on buying new homes.
According to some of Canada’s top home renovation experts, the following home improvements have the best return on investment:
According to HGTV, the average return for updates to a bathroom is between 93-102%.
Bathroom renovations can cost anywhere from a few thousand dollars (reglazing your tub, updating a toilet, paint and bathroom fixtures) to about $10 – 15k to replace the tub, tile surround, floor, toilet, sink, vanity and fixtures. A full remodel that includes expanding the space, moving a tub (etc.) and upgrading to designer or high-end tiles, counters and fixtures can cost up to $30k.
If you are looking to renovate one or more bathrooms in your home, consider what you love and how you use the space before getting started. While bathroom updates can have a great return on investment, you’ll want to make sure you can afford the renovations and it’s the right place to invest.
Landscaping + Outdoor Living Space
HGTV reports that the average return of landscaping your front yard is 100% - and with the shift to increased outdoor living and having great ‘curb appeal’, investing in your landscaping is a great option to update your home.
Outdoor living spaces has become one of the most popular areas of a home to upgrade. Extending our indoor space out, has resulted in a surge in backyard renovations to create the perfect outdoor living and dining environments that allows us to better enjoy our short-lived Canadians summer, while adding value to our homes.
Based on a very detailed article on HomeStars, Canadian homeowners spend between $1,809 and $6,901 for individual landscaping projects and approximately $17,204 on their entire landscape. According to the article, homeowners looking to landscape their entire yard can expect to spend about 5-10% of their home’s overall value and should consider the following:
- Consider the cost of installing new grass or maintaining your current lawn
- Should you plant flowers, plants or trees? And what kind will do the best in your area and yard?
- Do you need to install a sprinkler system?
- Do you prefer wooden structures like decks and gazebos or a stone patio?
- Adding lighting and/or water features are beautiful
- Installing a walkway out of stone is a great feature
- Designing the overall look/layout of your yard in advance will help manage costs and help reduce any feelings of being overwhelmed once you get to the nursery
Other considerations that will impact how much you spend on new landscaping are the size of your property/lot, how much of the space you landscape and if you hire a landscaper to design and build (vs doing it yourself).
Based on an article written in April 2020, HGTV suggests that the average return of a kitchen remodel is between 91-98.5 percent, depending on whether your renovation is a cosmetic update or a full gut and rebuild (and redesign) of your kitchen.
There are many affordable ways to upgrade your kitchen that make a big impact and will increase the value of your home, such as, refacing or painting your cabinets (if the boxes are in good shape), replacing the backsplash, counter, sink, fixtures or even your cabinet handles can make a huge difference!
Depending on the size of your kitchen and the type of upgrades you are looking to make, kitchen
renovations can add up (and add up quickly!)
Similar to a bathroom renovation, consider what you love about your existing kitchen and how you use the space before getting started. While kitchen updates can have a great return on investment, you’ll want to make sure you can afford the renovations and that your planned renovations will be desirable to future buyers (and doesn’t over improve a house).
One of the hottest trends and buzz words in home décor - curb appeal - has quickly become an area of focus for Canadian homeowners. Exterior home improvements can include a fresh coat of paint on the front door, or new shrubs, to replacing siding or a new roof or walkway.
Based on the same HGTV article, updates to curb appeal can have an average rate of return of about 95.5%
If your home is in need of an update or renovation, this might be the best time to invest! If you have built equity in your home you can use it to secure low-cost funds in the form of a second mortgage, which can be in the form of a one-time loan or a home equity line of credit (HELOC). Here are a few things to consider:
- Home equity can be a great source of value for homeowners to access cash for home improvements, whether they are upgrades, renovations or home additions.
- Home equity loans and lines of credit are secured against the value of your home equity, which can result in lenders offering rates that are lower than other types of personal loans.
- A home equity line of credit is a revolving source of funds, much like a credit card that you can access as you need and choose.
Are you ready to tackle a home upgrade or renovation? Let’s work together to get you the right funding at the best rate!
NOTE from HGTV: ROI values and remodeling costs are subject to change