Are the Best Bet to Increase Your House Property Value!
2011 @ wobuilt.com
Bathrooms and kitchens - the main areas that will increase your property value (apart from building a home addition).
With the new, slightly tighter Canada's mortgage rules coming in effect March 18, 2011 it may be best to consider renovating the areas that give you the best bang for your buck (so to speak). Kitchen and bathrooms are on the top of the list, while basement renovations are close to the bottom for return on your investment. FYI - the most cost effective renovation measure is painting.
As a guide:
[ V ] A fully loaded kitchen renovation with gutting everything to the studs, new drywall, electrical, plumbing, custom cabinets, new faucets, new flooring, backsplash, countertop and painting can easily cost you in the range of $40,000, more or less.
[ V ] Equally a full bathroom gut and renovation will be easily in the range of $20,000.
[ V ] In addition a reserve fund of 20% should be available for unforeseen circumstances such as asbestos removal, mold issues, structural repairs and design changes.
Even though these costs seem high, they are typical; it is often the finishes that drive up the costs. In our experience compromising on the finishes will lead to disappointment as the second choices rarely will be satisfactory and can lead to buyer’s remorse.
Please consider that just doing a renovation to get the best return on investment is in our opinion the wrong reason for starting a renovation unless of course you are a developer. It takes a very detached attitude to make this kind of renovation profitable. As renovating a home is an emotional decision for the owner, the outcome should be enjoyed for a long time. A renovation should improve comfort, possible enlarge the space and add more attraction. It should also be to the owners’ taste and requirements; not to a potential hypothetical buyer.
Wo-Built Inc. - Innovative Design and Build
Department of Finance Canada: Backgrounder: Supporting the long-term stability of Canada’s housing market: Mortgage Insurance
canequity.com: Mortgage rules may slow home renovations in 2011
CanEquity News, Staff on January 21st, 2011
wobuilt.com: Top Renovations That Increase Home Value
by Sheila Doris
wobuilt.com: What do you want to get out of your home renovation?
by Martina Ernst
wobuilt.com: Kitchen Upgrade – Plan Yours Today!
by Lonya Miller