Return on Investment of Home Renovations

RETURN ON INVESTMENT OF HOME RENOVATIONS

PERCENTAGE RECOVERED UPON RESALE

Construction

Central

Finished

Landscaping

Pool

Source: Appraisal Institute of Canada

The Appraisal Institute of Canada has developed RENOVA, a web-based guide to the value of home im-provements, to assist consumers in making decisions about the return on investment they can expect for a variety of home improvements. Homeowners can choose from among the 20 most popular renovation improvements. RENOVA also ranks the renovation trends, in terms of which provide the highest payback potential. Go to: www.aicanada.ca

Focus on completing renovations that a buyer would likely choose to do. Buyers generally focus on kitchens and bathrooms, as well as living and storage space. Since bathroom and kitchen remodelling can be very disruptive, having these updated before their home purchase is very appealing to buyers. If you’re considering remodelling the kitchen, keep the project in line with the style and quality of the rest of the house. Even if you can’t do a full kitchen renovation. there are upgrades that can help increase the value: granite countertops, new flooring and appliances, and new sink and plumbing hardware.

Kitchen upgrade 75% to 100% Bathroom upgrade 75% to 100% Interior painting 50% to 100% Roof Replacement 50% to 80% Replacement of furnace or heating system 50% to 80%

(addition of family room) 50% to 75%

and windows 50% to 75%

50%

of hardwood floor 50%

Expansion

Doors

Deck

to 75% Installation

to 75%

of

garage 50%

a

to 75%

gas) 50%

Fireplace (wood or

to 75%

air conditioning 50%

to 75%

basement 50%

fence 25%

to 75% Wood

to 50%

driveway 25%

Interlocking paving stones on

to 50%

25%

to 50%

20%

Asphalt driveway

to 50%

10%

to 40% Skylights 0% to 25%

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