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NerdWallet

Can’t Relocate? Try These 4 Value-Adding Renovations Instead

With rising home prices and increasing mortgage interest rates impacting budgets, many Canadian homeowners are opting to renovate their current homes rather than relocate. A recent HomeStars 2023 Reno Report indicates that Canadian homeowners spent an average of $12,300 on renovations in the past year, with an anticipated spend of $10,264 in the coming year, reflecting cautious optimism amid economic conditions. When undertaking home improvements, focusing on projects that yield a strong return on investment (ROI) is crucial for strategic financial planning and enhancing quality of life. Four key renovation projects consistently offer excellent ROI: kitchen renovations, bathroom remodels, basement finishing, and exterior door and window replacements. Kitchen renovations, typically costing between $21,000 and $50,000, can recoup 75% to 100% of their cost. Maximizing ROI in kitchens involves prioritizing functionality with durable and easy-to-maintain materials like cabinets, countertops, and appliances. Simple updates such as replacing outdated fixtures, hardware, and lighting, or painting cabinets, can provide a significant facelift without a complete overhaul. For example, solid surface countertops like Corian offer a more affordable yet durable alternative to quartz or granite. Bathroom remodels, with an estimated cost ranging from $7,500 to $26,500, also offer a high ROI of 75% to 100%. To get the most value, homeowners should consider replacing outdated fixtures with water-saving alternatives to improve efficiency and reduce utility costs. Opting for timeless finishes, such as classic tile patterns, neutral colors, and high-quality materials, appeals to a broader range of potential future buyers. These choices help ensure the renovation remains appealing over time. Finishing a basement, which expands usable living space, costs approximately $38.62 to $73 per square foot, translating to an ROI of up to 75%. For a 1,000-square-foot basement, this could range from $38,620 to $73,000. Essential considerations for basement projects include waterproofing the structure, creating defined spaces for various functions like guest rooms or home offices, and ensuring safety through proper fire exits and ventilation systems that comply with local building codes. Egress windows must be correctly sized and installed. Finally, replacing exterior doors and windows can enhance curb appeal, improve energy efficiency, and increase home comfort, offering an ROI of 50% to 75%. An exterior door replacement can cost $730 to $4,000, while window replacements typically range from $800 to $1,640 per window. Homeowners should choose energy-efficient models with features like low-emissivity glass and Energy Star certification to lower energy bills. Durable materials such as fiberglass or composite for doors and vinyl or aluminum for windows are recommended to withstand harsh weather conditions. When hiring a contractor for these projects, it is advisable to obtain multiple price quotes from at least three different professionals. Verify their credentials, including business licenses and professional liability insurance, and check online reviews and client references. A detailed written contract outlining the scope of work, materials, payment schedule, and timeline is essential. Additionally, homeowners should allocate an extra 20% to their budget for unforeseen issues and clarify warranty terms with the contractor. #HomeRenovations #HomeImprovement #ReturnOnInvestment #KitchenRemodel #BathroomRemodel #BasementFinishing #EnergyEfficiency #ContractorHiring #HomeRenovations #HomeImprovement #ReturnOnInvestment #KitchenRemodel #BathroomRemodel #BasementFinishing #EnergyEfficiency #ContractorHiring
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