Adding value with home renovations
Page Content
A good investment in a renovation should increase the value of your home by at least 50% of what you spent. Before you plan any improvements, understand what does – and doesn't – add value to your home.
5 renovations that usually add value
| 1. New or improved kitchens and bathrooms |
75-100% |
|---|
| 2. Low-cost improvements – Painting, new wallpaper, new rugs |
50-100% |
|---|
| 3. New windows or doors |
50-100% |
|---|
| 4. Basement renovation |
50-75% |
|---|
| 5. Investments in more efficient use of energy, especially if you are eligible for government rebate programs |
60% |
|---|
*The percentage of your cost that you may recover when you sell your home
Source: Appraisal Institute of Canada
3 upgrades that usually don't add much value
| 1. Costly landscaping |
25-50% |
|---|
| 2. Spa style shower systems |
36% |
|---|
| 3. Swimming pool |
0-25% |
|---|
*The percentage of your cost that you may recover when you sell your home
Source: Appraisal Institute of Canada
If many homes are being torn down in your area, it may not be worth it to do costly renovations. Buyers who are going to tear down your house will have no interest in the building — just in the land.
Don't forget the HST
When you're budgeting for home renovations, don't forget to take into account the HST you'll have to pay on them.