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It’s no secret that many Canadians are being priced out of buying a home in the city that they want to live in. Increased cost of living paired with inflation rates have dramatically raised the bar, especially for younger Canadians, to enter the housing market for the first time. As a result, we’re seeing a significant portion of the population choosing instead to remodel or renovate their current home, with the goal of adding value to their property for eventual sale down the road. Recent data from Angus Reid in partnership with Financeit found that a quarter (25 per cent) of Canadians are planning to undertake home renovations in the next year, and 21 per cent stating they’d be completing renovations to increase the value of their home.
For Canadians priced out of moving in these hard economic times, and instead deciding to renovate to purchase their dream house in the future, there are several specific upgrades people should keep in mind for the ultimate return on investment (ROI). More importantly, there are also economically friendly ways (believe it or not) to undergo renovations. If you want to avoid breaking the bank, here are a few renovation solutions proven to upgrade your space.
Maximize Useable Space
One of the easier ways to increase value to your home is to utilize all usable space – the entire space you occupy and use, including hallways, storage spaces and closets.
An unfinished basement, for example, is often an empty space that sits vacant, and can be the perfect, affordable upgrade to take on if you’re looking to increase value to your home. A report by the National Association of Realtors found renovating a basement into a living area brings 86 per cent of the project cost recovered when it comes time to sell your home. Basements finished and converted into functional living spaces, whether that be a fitness room, home office, or an additional bedroom, not only increases home value, but could also further entice potential buyers’ interest in purchasing the house.
While basement upgrades can often be seen as costly, there are a few methods of keeping expenses down while finishing your underground space. Not all aspects of your basement renovation must be done by professionals and easier tasks such as a fresh coat of paint, installing basic flush-mount lighting, and building your own shelves can significantly help cut down expenses when you do it yourself. Also consider more affordable materials such as pre-finished panels in place of drywall or vinyl planks instead of expensive hardwood if you’re tight on cash for your basement renovation.
The other way to maximize usable space is to ensure you are properly utilizing your storage spaces. Adding proper organizational tools such as built-in shelves, storage cabinets, and labels can help make any pantry or closet more functional and attractive for a future buyer. Further, think of the places in your home that you could transform into additional storage. Building storage units under the stairs, for example, is a unique method of utilizing all the available space in your home while adding extra flair to your living space – whether that be with a wet bar, wine rack, pet room or bookshelf. I’ve seen plenty of homeowners take this on as a DIY project which can save on expenses of hiring a contractor or professional tradesman.
High Impact Changes
The obvious remodel most people embark on when undergoing renovations is the kitchen – and for good reason. According to a recent report, even a minor kitchen remodel can increase the average home’s resale value by approximately $26,000 and can bring a 96 per cent ROI when it comes time to sell. Simple upgrades like new cabinets, modern appliances, and new lighting can enhance the space and make a big difference for prospective buyers. Bigger upgrades such as new countertops or building an island in the kitchen could also be considered for maximum ROI, though a bigger overall renovation investment up front.
It is said that the heart of the home is the kitchen and while that may be true, let us not forget about the other high-impact rooms of the house, such as bathrooms. Having well-designed bathrooms, with modern features, updated fixtures, and new tiles can have a significant impact on your home’s value. Updating the master bath or adding another half bath can be highly appealing to buyers and should be a serious consideration when thinking about remodeling your home for value.
Increase Energy Efficiency
Incorporating sustainability into your home isn’t only a great ethical choice to make but could also be appealing to future buyers. In addition to future value, adding energy efficient upgrades can save homeowners money on energy bills while they still live there. Solar panels for example, while an expensive upgrade upfront, is the ultimate value add for future buyers interested in long-term savings and helping the environment. A homeowner could save approximately $28,000 to $120,000 over 25 years with the use of solar panels, according to EnergySage.
More economical energy savers to be considered include:
Homeowners are actively searching for sustainability in a home purchase, with 62 per cent of realtors saying they have been directly involved with a property with green features in the past 12 months, both on the seller and buyer sides, according to a recent study by the National Association of Homebuilders.
Is Any of This Doable on a Budget?
While renovation and remodeling have a reputation for being very expensive, which is true in a lot of cases, it doesn’t always have to break the bank. The first step should always be to set a realistic budget, prioritizing your top renovation must-haves, while also including a contingency budget for any unexpected expenses.
Next, determine what tasks can be done on your own, which will save a significant amount of money rather than hiring a professional to complete everything. Minor remodeling tasks such as painting, new cabinets, landscaping and updating lighting fixtures are tasks that can typically be done by a homeowner. I recommend finding an online video tutorial with good reviews (pro tip: make sure to comb through the comments to see what other people have done). In terms of materials, visit resale shops such as Habitat for Humanity ReStores or search through online marketplaces like Facebook Marketplace or Karrot to find gently used items at a lower price. Where aligned with your remodeling design ideas, also consider budget-friendly materials that mimic higher-end options, such as laminate flooring or engineered countertops.
Some final thoughts to keep in mind while trying to keep costs down during renovations: refinish rather than replace, salvage materials where you can, and update smaller, less expensive fixtures such as cabinet knobs or faucets for a quick and modern upgrade. Finally, for renovations that you outsource to professionals, don’t forget to compare quotes from several contractors to ensure you are getting a fair price and always negotiate where possible.
While prioritizing and finding cost-cutting solutions should be a serious consideration when renovating on a budget, if you’re struggling with the upfront expenses that often come with major remodeling projects, there are a number of financing-providers, Financeit for example, that help Canadians tackle home improvement.
Remodeling and renovations don’t have to leave you stuck in the red and can certainly be a strong solution to add value to your home for future resale. Purchasing a house is the biggest investment many Canadians will ever make, and I believe giving people cost-effective options for upgrading that investment is of the utmost importance.
