House Renos That Actually Increase the Value of Your Home

Though smaller than its American counterpart, the home renovation industry in Canada is alive and well and expected to keep growing. In 2019, sales of products for home renovations and improvements amounted to about 41.9 billion Canadian dollars.

When you break down those renovation dollars per individual, the average Canadian homeowner spends about $10,200, and approximately 11% of Canadian homeowners will pay well over $25,000. Often, homeowners decide to renovate to create more aesthetically pleasing spaces and more functional homes to meet their changing lifestyles.

The COVID-19 pandemic meant that people spent much more time in their homes, and many Canadians found themselves working and assisting their children with online schooling. The multiple uses that the pandemic demanded of our homes paved the way for restructuring some of our living spaces into offices and classrooms.

Another primary reason for embarking on a home renovation involves resale value. Whether the homeowner intends to put the house on the market soon or plans to live in the home for decades before selling, renovations will surely increase the home’s value.

What Home Renovations Add the Most Value?

Though almost any home improvement project may make the house more livable for the family, some renovations, when done correctly, will add value to the home. Especially when undergoing significant projects, the homeowner will want to focus on time-tested or classic designs rather than the latest trend.

Major renovations

• Add a room by creating an addition — Adding on to your home may involve raising the roof and adding another story or adding an extension on the ground level. Turning an attached garage into a living space represents another option.
• Remodel the kitchen — Remodelling a kitchen may involve demolishing the old kitchen and creating a new floor plan to create better flow and useability. A remodel may only involve new surfaces and appliances if the kitchen arrangement already works. If the cupboards are in good condition, consider refinishing or painting them.
• Remodel the bathroom — The same holds regarding the bathroom renovation. You may want to start with a clean slate to get that perfect walk-in shower or jacuzzi tub. Or you could replace the fixtures, countertops, lighting, and cabinetry.
• Finish the basement — Finishing the basement will double your square footage. The possibilities include extra bedrooms, bathrooms, living spaces, and offices.
• Update your HVAC system — Making sure your air conditioning and heating systems work efficiently will provide comfort and give your home a huge boost when it comes time to sell it.

Other renovations to make your home more livable and increase the resale value

• Improve your curb appeal. Make sure you display a healthy yard with low-maintenance trees and shrubbery. Defined floral, herbal, and vegetable gardens also make a yard more inviting.
• Add outdoor living space with a deck, patio, and a fire pit. Treat this space as an extension of your home with comfortable outdoor furnishings, pillows and cushions, lighting, and other accessories.
• Add a walkway with brick, pavers, or decorative stone.
• Add another sink or a double vanity to a bathroom.
• If space in the kitchen permits, add an island or workstation.
• Repurpose an extra bedroom as an office or walk-in closet.

 What to Do Before a Home Renovation

Depending on your schedule and skill level, it may make the most sense to hire a professional contractor for your home renovation needs. A professional will know what to expect, how to plan for contingencies and guarantee that the project is up to code and done well. Hiring a contractor may very well save you money in the end.

Whether you decide to manage the project yourself or you’re working with a contractor, when embarking on a significant project such as a home renovation, organization and planning will help make your project a success. Consider the steps below to make your project cost-effective and as low-stress as possible.

• Define your goal — Start with a clear vision of your expectations for the renovation. Discuss it with your partner or spouse to verify your agreement on the goal.
• Establish a budget within your limits — Check into your savings and financing to see if the renovation makes sense for you and your family. 
• Consider the timing as it relates to weather and other events — Schedule outdoor construction before winter hits and consider other commitments, such as scheduled travel, when planning a major renovation.
• Do your research, get recommendations, and read reviews — Check with people you know, and check consumer websites and watchdog sites.
• Pack up belongings in the renovation area — Securely pack and store all items in the renovation area, such as dishes, pots and pans, and food in the kitchen.

1. Consider your routine as it relates to needing an alternative living space for you, your family, and your pets — You may need to plan for temporary housing.
2. Organize your tools and materials — If you plan to work on the project yourself, make sure you purchase or obtain the proper tools and materials.
3. Book help — Check with friends and family who may help with prep work or even jobs requiring expertise before you hire the professionals.
4. Plan for additional costs & unexpected surprises — You never know what you may run into in regards to plumbing, wiring, foundational concerns, etc. It’s recommended to set aside a contingency fund that equals between 10 to 20% of your total budget. 
5. Create drawings or blueprints — Some visualization tools will help others working on the project.
6. Obtain permits — Apply for permits before doing any major demolition work.
7. Establish a reno-free zone — If your home allows it, establish a place away from the noise and debris.
8. Schedule cleanup — Before revealing your terrific new renovation, clean up your house or yard. You’ll want to consider safety as well as aesthetics.

Where to Stay During Home Renovations

The type of home renovations you’re planning will determine whether you and your family can stay safely and comfortably during the remodelling. Of course, an outdoor addition usually doesn’t pose a problem for the home’s inhabitants. But an interior renovation, especially a kitchen or bathroom, may result in the family needing to stay elsewhere while work progresses.

In addition to no access to a working kitchen or bathroom, a significant home renovation comes with a lot of dust, noise, and workers coming and going. Especially if children and pets are involved, you may find living in the home during the renovation difficult.

Several alternative housing options exist that will help families continue a routine during a major renovation:

• Look for short-term furnished rental apartments — Plenty of short-term apartments exist in Canada. If you decide on this option for your family, check for safety features such as proper fire escapes.
• Check out AirBnB options — Some AirBnB options have plenty of amenities. Check with the owners in your area. You may get a significant discount if you book the AirBnB for a month or more.
• Explore corporate apartments — Check with high-rises and large apartment buildings in your area. You may find a fantastic furnished apartment with amenities such as a fitness centre and a pool. A corporate apartment will provide more security and a sense of home than a hotel.
• Book an extended-stay hotel — This may also represent a relatively thrifty option, especially if you look at the suburbs rather than near s tourist area.
• Stay with friends or family — A parent or a sibling with the space and facilities in their home to make your family comfortable represents a great option. Grandparents and grandchildren will especially enjoy the experience. Living with a good friend or relative may also prove economical. Of course, you’ll want to offer to help with groceries, meals out, cleaning, and other errands and chores.

Renovating a Small House on a Budget

If you live in a relatively small home with good bones, you can spruce it up and make it look new on a budget. Perhaps you just bought a starter home or downsized as empty nesters. If you’re planning to sell your house or improve your environment, these easy and thrifty renovations that will make a world of difference in your modest-sized abode:

You can spruce up your kitchen with these quick fixes:

• An updated backsplash
• A portable island
• Fresh paint or wallpaper
• Paint or stain the cabinets and change the hardware
• Transforming some of your cupboards into open shelving
• Updating your kitchen floor
• New countertops

Making your living room more livable:

• Update your window coverings
• Paint and wallpaper can work wonders
• Replace carpet or refinish hardwood floors
• Clean up and stain or paint tired-looking woodwork and built-ins

Make the bedroom magical:

• Add an over-sized and dramatic headboard
• Change the lighting
• Paint and wallpaper

Quick fixes for the bathroom

• New countertops
• Paint the cabinetry
• New mirrors and medicine cabinets
• Change the hardware, including the towel bars, toilet paper holder, and faucets
• Add a cork or chalkboard. These functional surfaces also work well in the kitchen.

In the entryway

• Add a mini mudroom with organizational shelves and a storage bench
• Paint the stairs an interesting pattern
• Add a new lighting fixture

In a smaller home, it also makes sense to stay with a complementary colour palette throughout the house.

Canadian Federal Government Grants for Home Renovations

Canadian federal government grants focus involves saving energy, reducing utility bills, and minimizing the homeowner’s environmental footprint. Homeownership represents the primary qualification for a Canadian federal government grant.

The Canada Greener Homes Grant

The Canada Greener Homes Grant provides Canadians up to $5600 to spend on home renovations to make their dwellings more energy efficient. This grant program started in 2021. It gives the homeowner $600 toward an assessment and reimburses them up to an additional $5,000 once the renovation is completed. Some home improvements covered by this grant include the following:

• Insulation
• Windows and doors
• Space and water heaters
• Air-sealing
• Photovoltaic or solar panels
• Thermostats

The Canadian government intends to give out 700,000 of these grants to reach a net-zero emissions standard by 2050. The grant program also creates well-paying jobs.

Provincial home-improvement grants are also available to make your home more energy efficient. Many of the provinces also offer grants and programs to help seniors improve their homes.

How to Finance a Home Renovation

Before deciding to take on a home renovation, you’ll need to determine if it’s affordable. In addition to considering your financial situation and budget, you should also weigh the return on investment the renovations will bring when the time comes to sell your home. For example, will spending $30,000 on a gourmet kitchen allow you to list your house for an additional $50,000?

Several options exist for financing a major home renovation for an established homeowner:

1. Savings — If you can withdraw from a savings or retirement account without taking a substantial penalty, using your savings represents a viable option for remodelling your house. Don’t deplete your savings to the point where you don’t leave sufficient funds for emergencies.
2. Home Equity Loan of Canada (HELOC) — The HELOC option uses your home equity as collateral. If you receive a home appraisal of $500,000 and you owe $300,000, you may borrow up to $200,000. You may also use the funds for other things besides home renos. Consumers warn not to go overboard and to borrow just what you need to accomplish your home renovations. Make sure the monthly loan payment fits into your budget. As you pay it back, the funds become available again under the HELOC program. 
3. Refinance your mortgage — Refinancing your mortgage for a home renovation represents a very popular way to approach house reno costs, especially if the interest rates work in your favour. If the refinance interest rate measures substantially lower, often your payment will remain about the same even after borrowing a substantial amount of money.
4. Borrowing from a family member — A loan from a parent or relative usually represents the least desirable way to finance home renos. In addition to the obvious stress this type of transaction may produce for both parties, problems often exist surrounding the family lender charging the correct amount of interest. A family loan may represent your only option for an emergency interior renovation if your credit rating does not allow you to apply for another type of financing. It’s best to borrow what you need to make a bathroom or kitchen functional. After you build up your credit, you may obtain funding for a full-scale home renovation.

Spending $30,000 to $100,000 on a home renovation may seem like an outlandish investment. But remember, if you’re doing it right, it will add value to your house and improve the quality of life for you and your family.

Are Home Renovation Expenses Tax Deductible?

Throughout Canada, homeowners may qualify for a tax credit if the improvements made to their house qualify as improving the accessibility of the home. Under the Home Accessibility Tax Credit (HATC), a homeowner may receive up to a $10,000 tax credit if the home renovation includes accessibility features.

Senior citizens and those with disabilities who reside in British Columbia may claim up to $1000 annually for home improvements that make the dwelling safer and more accessible.

 The following improvements qualify for the BC tax credit:

• Handrails
• New door locks
• Motion sensor lights
• Lowering countertops
• Non-slip flooring
• Touch-and-release infrastructure
• Door widening
• Elevators and wheelchair ramps

If someone in your home is at least 65 or disabled, you may qualify for the BC tax credit.

Are Home Renovation Costs Going Down?

The cost of remodelling your house is rising. The price for materials and services continues to go up, and Canadians are expected to pay nearly twice as much for home renovations as they did a year ago.

The mindset to offset delaying your house reno due to rising costs involves the realization that real estate values also continue to increase.

The COVID-19 pandemic saw many people improving their homes, but interestingly the trend continues. Homeowners either want to sell their homes after the house reno and move to a different location or make the home more comfortable and functional for the family.

What Home Renovations Require a Permit?

Before starting a major renovation, make sure to check and see if the project requires a permit. Here is a partial list of renovations that will require a permit:

• Construction of a new building
• Adding to or repairing an existing building
• Structural alterations to a building
• Demolishing all or part of a building
• Removing or installing load-bearing walls
• Adding doors and windows
• Building a garage, porch, or balcony
• Building a sunroom
• Excavating a basement
• Constructing or repairing a foundation
• Install or reconstruct a chimney or fireplace
• Mechanical or fire damage repair
• Construct a private sewage system

If you’re working with reputable contractors, they will most likely know what needs a permit. But when in doubt, check with the appropriate agency.

If you’re planning to renovate your home with selling it in mind, be sure to contact us at Century 21 Poirier. We will answer your questions and give you the guidance you need when it comes to selling your home.