#1. Value to
Enhancing your home with a home improvement renovation may
offer more value than money can provide. A beautiful outdoor living area to entertain
on, a finished basement for the children to play, or that dream bathroom to
help you unwind, all may contribute to a quality of life factor that only pride of
home ownership can offer. This decision to renovate is based more on emotional factors and desires vs a healthy return on investment. For this type of decision, base your renovation and choice of materials on what matters to you: tumbled stone vs ceramic tile, a deep jacuzzi tub vs an inexpensive shallow fibreglass one, etc. The dollar value in this renovation will come from the years of pride and enjoyment.
#2. Return on
Investment – Resale Recovery
Despite what the trendy home flipping television programs
show, not all home improvement renovations and home upgrades will give you a
large return on investment. Infact, more so than not, most home renovations
give you very little return on your investment. Very rarely does a $10,000 home
improvement renovation get you a $20,000 return. When considering a home
renovation or upgrade for resale purposes, keep all costs in check and splurge
only on the necessities. Choices in materials should be kept generic and cost effective with only the final sale figure in mind.
The following information is a range of the 20 most common
home improvement renovations identified by a survey of the Appraisal Institute and verified by a survey of Kitchener Waterloo Home Owners through KWContractor.com. The goal of the
survey was to determine, in the informed opinion of Canada’s home improvement
professionals real property values, and what effects these renovations have on
the value of a homes resale.
Please note: Home values and returns on renovation
investments are dependent on so many factors such as the location of the
property, i.e. rural/urban, the neighborhood and notably important is the
quality of workmanship and materials. The following information is to be used as a rough reference only based on the reactions of 1000+ home owners surveyed.
Home Improvement Renovation Recovery