Considering renovating your house? Are you wondering if your renos will add value to your home?
Home improvements are a great financial investment. If done strategically, they should increase your property value by at least 50% of what you spent. That said, not all renovations will yield these returns.
According to the Appraisal Institute of Canada, the following renovations usually add significant value to your home:
• New or improved kitchens & bathrooms
• Low-cost improvements such as painting, new wallpaper, new flooring
• New windows or doors
• Basement renovations
• Investing in energy-efficient methods, especially those eligible for government rebates
If you don’t see your renovation type in the above list, your reno plans might not add as much value. Here are some examples that generally don’t add value to your home:
• Costly landscaping
• Spa-style shower systems
• Swimming pools
While you might not see as much of a financial return on these projects, that doesn’t mean you shouldn’t do them. At the end of the day, they are for you and your family to enjoy, which is still valuable.
Whenever you take on a home renovation project, always notify your insurance broker. Renovations put you and workers at risk, and they also change the value of your home. If you’re making updates, contact your broker now!
(Billyard Insurance Group)