If you are looking to sell your Canadian home then you will want to fully maximize every last ounce of profit that you can get from the sale. Here we discuss how much (% or $) you should be spending in each room (based on the total house value).
At the end of the day, profits are key and you need to maximize them without spending too much on renovations.
Due to the housing market, more and more people across Ottawa, Toronto, Calgary and Vancouver are making the move to stay where they are, but renovate. Their friends, families and jobs are all local, so this makes a lot of sense.
Wherever you live in Canada, there are some basic things to think about if you are on a budget.
Do not go for expensive finishes. Instead concentrate mainly on the structure, tough appliances and solid windows. These will be your most valuable investments.
Consider what you believe to be the ceiling for your local area. This is the maximum you could expect to get. If your home is superior to all other properties then you can price it higher than the highest property in the area, but not by an enormous amount. Based on this, let’s see what you can spend, and where.
The Kitchen – The Hub of Your Home
If your home is worth around $500,000 then you should really spend only around 5% of the property value on the renovation. Therefore the kitchen in this instance should not have more than $25,000 spent on it.
The Bathroom – A Place of Sanctuary
When you are ready to transform your bathroom into the ultimate indulgent experience temper the excitement with a budget of no more than 2.5%, so in our example above, you really shouldn’t spend more than $12,000 to $13,000 on it.
The above two are the main rooms. Besides these you could look at swimming pools, brick driveways and theater rooms, but these are likely to only yield a 25% to 50% payback. Air conditioning in the home may only add 25% to 75% (this figure changes wildly).
Just remember that when you start to renovate certain rooms, the other rooms will start to look dated in contrast so you will probably need to adjust your budget to suit this.