* Renovations that add features to a home that other homes in the neighbourhood already have, such as a second bathroom, have a higher recovery rate than features not shared by neighbouring properties.
* Renovations done on a home with a lower market value than the others in the neighbourhood provide a higher recovery rate than renovations done on a home which is worth more than neighbouring properties.
* Poorly done renovations may have no positive effect. In fact, they may actually reduce the value of the home.
* Ensuring that a house is in good repair and well maintained is essential. However, renovations done on a home which has maintenance problems will have much less of a bearing on its resale price.
Here is what homeowners can expect to get back at resale for the most common home improvements, according to the AIC:
Home Upgrade ROI (%)
Kitchen upgrade 75 - 100
Bathroom upgrade 75 - 100
Interior painting 50 - 100
Roof replacement 50 - 80
Replacement of furnace/heat system 50 - 80
Expansion (addition of family room) 50 - 75
Doors and windows 50 - 75
Adding a deck 50 - 75
Install hardwood floor 50 - 75
Adding a garage 50 - 75
A calculator is offered on the Resource Centre page of AIC's RENOVA website (www.aicanada.ca) and it can help you get a better idea of the ROI you can expect for a variety of home improvement projects. The site shows a payback range in dollars and as a percentage of what you plan to pay for the upgrade. Homeowners can choose from among the 20 most popular home improvements.
For more information, give me a call and I'd be happy to help you out (613-725-1171).
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