Renovations provide big return for Burlington, Oakville, Milton, Halton Hills home owners
Published May 5, 2022 at 1:23 pm
Going ahead with those long planned home improvement projects is financially beneficial for home owners in Burlington, Oakville, Milton and Halton Hills.
Renovating that kitchen alone could increase the value of your home, on average, by 20 per cent, found a recent Royal LePage survey of 340 real estate professional across Canada.
“Kitchen renovations typically yield the greatest return on investment, as this space is most frequently used, and is perceived as the gathering place and the heart of the home,” said Mike Heddle, broker and team leader, Royal LePage State Realty. “When a potential buyer views a home for the first time, the one thing that will stand out – for better or worse – is what the kitchen looked and felt like.
“They may not remember the size of the bedrooms or the colour of the walls, but they will remember the kitchen.”
Investing in upgrades to your home can prove beneficial whether your are planning to sell in the short term or not.
“During the pandemic, many Canadian homeowners used built-up savings to make improvements to their homes,” said Heddle. “Whether it’s a new kitchen or upgrading your outdoor space, home renovations are a worthwhile investment, as you and your family will enjoy the new space, in addition to the potential increase to the overall property value.”
While a kitchen update is the most worthwhile improvement, there’s plenty of other home improvements one could make that will significantly bump up the resale value of your home.
The survey found a bathroom renovation can add 16 per cent value, while finished basements and basement apartments increase the value by 15 per cent.
“In today’s market, investing in a basement apartment can greatly increase the value of a home, largely because it can help offset mortgage costs with a rental unit, or appeal to newcomers looking for multigenerational homes,” said Heddle.
“Since the onset of the pandemic, we are also noticing senior homeowners looking at multigenerational opportunities to live under the same roof. Having an additional fully livable unit allows for more privacy for those families.”
Some landscaping and work on an outdoor entertaining space is worth a 10 per cent bump.
A total of 87 per cent of those surveyed recommended interior renovations.
Window replacements can increase the value of a home by 13 per cent, and interior painting can increase the value of a home by 12 per cent, on average.
“While updating the kitchen or a bathroom can increase your sales price more significantly, minor upgrades such as interior painting can be a simple and cost-effective option to increase the value of the home,” added Heddle.
The survey of experts also found that 59 per cent of prospective sellers have been less inclined to renovate their homes prior to listing since the onset of the pandemic, due to sustained seller’s market conditions.
Due to recent increases in the cost of construction materials and labour, 57 per cent of the experts say that sellers may choose not to renovate.
“Properties that are turnkey with modern finishes spend less time on the market,” said Heddle. “However, the timeframe and logistics for delivery of goods and materials may be a deterrent for many sellers, especially with the rising costs associated with renovation projects.”
As for what renovation doesn’t bring in a big return on your property value, the survey found a pool at only adds six per cent.
Royal LePage’s national online survey was conducted across Canada between February 17th, 2022, and March 14th, 2022.
Each respondent was asked to complete an online survey composed of seven questions pertaining to the value of popular home renovation projects.
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