Did you know that in 2019, almost 60% of Canadian homeowners completed one or more major renovation projects to their home? Renovations done right can make your home more comfortable, increase its value, and help you build wealth for your future.
Make the right repair or renovation at the right time and you’ll maximize your wealth. It’s really not difficult, if you consider a few key factors…
Find the RIGHT way to increase your home’s value!
Most of us improve our homes for two reasons – we want to make changes to better meet our family’s needs and we want to add to our home’s value.
Victoria joined the CleveDoesMore family just a few years ago, as a new client. She was smart, witty, and had big dreams for her future. She also had a lot of untapped potential in her home that she wasn’t sure how to maximize.
As part of her 360 Degree Financial Plan, Victoria was able to secure a $100,000 loan to convert her basement into a luxury apartment. The value of her home rose 30% and she started collecting $2,500 every month in rent.
With this newly created cash flow, she has also been financially able to complete several more home renovation projects each and every year, adding beauty, comfort, efficiency, and value to her property!
Before making the decision to undertake a home renovation project of your own, there are three major considerations to keep in mind.
Ask yourself what you need to make the home more comfortable
The key word in that sentence is need. You may want a high-quality home theater to enjoy movies once a week during the winter. What your family may need, though, is a renovated basement that adds living space you’ll use every day for years. A beautiful basement also can generate passive income.
Basement renovations also are one of the top 5 ways to improve how much your family enjoys your home, according to the Appraisal Institute of Canada. The other four renovations that deliver family satisfaction are garages, sun rooms, decks and fences, and landscaping.
Consider the return on investment for renovations
Replacing the windows isn’t much fun and it could cost thousands of dollars. But the Appraisal Institute of Canada estimates the return on investment for windows between 50% and 75%. That means if you spend $5,000 on new windows, your home value can rise as much as $3,800. More immediately, new windows reduce your monthly heating and cooling costs.
Other, similar improvements that build your home’s value include: replacing the roof or updating the heating and cooling system. In general, today’s buyers are looking for energy efficiency, so home renovations that focus on that tend to be the best value.
If your home looks dated, consider simple, inexpensive fixes
When we think about renovations, we tend to think about expensive investments like finishing an entire basement. But don’t overlook the power of a fresh coat of paint. Experts estimate that paint has a 165% return on investment. Just remember to choose colors with wide appeal. Buyers also respond well to curb appeal, so spruce up your landscaping or replace your front door while you are at it.
One renovation that reaps big rewards is also the least expensive. Remove all the clutter and excess items from counters and tabletops. Your knick-knacks could be hiding your home’s features from prospective buyers.
Take a critical look at high-traffic areas such as kitchens and bathrooms. Just replacing the hardware on cabinets can give these rooms completely new looks. Investing a little more money to replace faucets or lighting fixtures also delivers big results.
If you decide to invest in more expensive renovations, keep in mind that home trends change over time. A bathroom renovation completed in 2005 does nothing for your resale value in 2020. If you aren’t selling for a decade or more, be sure you choose features that are easy to update. A good designer and contractor can help you with this.
Finally, as you consider renovations, remember that some upgrades are necessary to simply maintain your home’s safety and value. Roofs, furnaces, and air conditioners wear out and should be replaced every 10 to 15 years, even if you aren’t selling. Keep an eye on your electrical fixtures too. Worn-out electrical systems are a fire hazard. Structural defects always require timely repairs.
Not sure if you are one of the many Canadians who is just “sitting” on untapped potential in your home? Interested in seeing how a home renovation can impact your financial situation and be used as a tool to help you build wealth?
CleveDoesMore can help!
A great place to start is with our innovative program, called the $500 Fix, that actually locates money you didn’t even know you had! Since it is backed by a complete guarantee, there is no risk to give it a try.
This time tested solution is easy to get started with and a great way to improve monthly cash flow, giving you additional funds and options for the home renovation you have been dreaming of.