If you’re set to do some home renovations, there’s one thing you want to make sure of—that you’ll ultimately get a good return on your investment (ROI).
Some Canadians go all out on upgrades of their humble abodes, and that’s terrific if you plan on spending many years in your home. But there are some renos that might be best left undone if you’re concerned with ROI, or if you’re an investor looking to fix and flip.
Have a look at these four things you might NOT want to do:
A fix that’s too nice. This particularly applies if you’ve bought an income property or a property you’d like to fix up and resell. It’s also prudent advice if you’re not planning on staying in your home for the long haul. Don’t go overboard on the fixes. Of course, you’ll want to stay away from shoddy materials, but installing marble countertops, elaborate chandeliers and top-of-the-line crown molding when you’re planning on selling or renting the property won’t do your pocketbook any favours.
A home office might be sweet, but… Spending a lot on creating a home office can actually be more detrimental than beneficial for your home. In fact, statistics show that it can actually decrease your ROI by 5 per cent. While you’re working at home, give yourself a comfortable space, but don’t spend a lot, and make sure it’s easily convertible into another type of space if you decide to put your home on the market.
The massive master. The master bedroom is one room that’s also best left undone unless you plan to spend years in your home. You can easily lose about 40 per cent of your investment by sinking too much into this space. So, if you’re planning on renovating it, do it because you want to enjoy it yourself, not because you think it will pad your bank account if you go to sell.
In-law suites. If you want grandma and grandpa to come live with your family, by all means you might want to think about revamping or adding a space to accommodate them. Don’t do it, however, because you think it will add to the resale value of your home. It likely won’t. Actually, this is another of those renos that can decrease your ROI by about 5 per cent.
Having said that, here are some great reno ideas that will give you a terrific ROI: A kitchen remodel, up to 85 per cent; a deck or patio, up to 80 per cent; new siding, up to 80 per cent; replacing the windows, up to 77 per cent and remodelling the bathroom, up to 65 per cent.