Many homeowners in this generation are left with a choice to buy new and smaller or buy older and renovate. In Vancouver, the trend for condos is a smaller and efficient use of space. However, some homeowners prefer the older condo layouts which usually have more space to offer but need to have upgrades done. Home improvements can increase the value of your property as well as provide the options to include personal taste and to make the space the most functional and comfortable for your lifestyle. Realistically, it’s going to depend on a variety of factors; how much work you will be doing, standard renovations or premium renovations, and much more.
Where to Begin:
Well, in most cases when homeowners are looking for a new home, the consensus is that eventually the house will be sold, maybe not immediately but even say 10 years down the road. Therefore, the best place to start is in the rooms that give you the best return on your investment (ROI) and from there it would be based on your lifestyle needs. According to a vast majority of surveyed experts, the general advice is, to begin with, the kitchen. This is the most significant upgrade which has a direct impact on boosting your property value; a survey done in 2018 by Royal LePage real estate experts quoted an increase by more than 12.5%. Next, would be the bathrooms followed by interior painting and updating of lighting and fixtures throughout the house.
The Dangers of Over-Improvement:
According to the Appraisal Institute of Canada, “- Consider your neighbourhood and the expectations of buyers in the area when planning your renovation project. Depending on the particular market and/or neighbourhood in which you reside, expensive projects that over-improve your home may only be partially recognized by prospective purchasers.” Therefore, don’t put too much money into an area/space that may not have an ROI equal to or more than it would be worth to a buyer.
Factors That Impact The Cost of Renos:
- Labour quality and quantity (DIY vs Contractor)
- The complexity of the project
- Fixtures/finished quality
- Miscellaneous costs – designer/architect fees, emergency costs
A generally established rule is for homebuyers to budget 1% of a home’s value each year for ongoing maintenance and improvement. For instance, if you own a property worth $600,000, you would set aside $6000 each year into a high-interest savings account (HISA). Thus, if you have any unexpected renovations you would have accumulated funds to help with the burden of a surprise project or savings to put towards a much-needed upgrade.
So, let’s break it down a bit. It is said that the average amount homebuyers should put towards a kitchen reno is around 10-15% of the overall value of their home. Although, if you are creating your “forever home” and believe you will stay there for more than five years you could realistically budget from 15-25% as this is the room that is most frequently utilized in a majority of people’s homes. It may seem like a lot but it is including appliances, cabinetry, plumbing, countertops and possibly a contractor.
Next, many experts say that you should budget up to 5% of the value of your home for each bathroom you are renovating. The typical cost of renovating the bathroom factors in updates to the shower/bathtub, pipes/connectors, toilet, vanity, sink, faucet, flooring, countertops, electrical work or even a change to the layout.
Interior Painting Cost:
A fresh coat of paint can do wonders, providing a simple and cheap option to liven up a room. Cost is dependant on the size of your space as well as the quality/brand of paint, and labour cost. This usually averages around $1 – $1.50/sq ft.
Ideas to Finance Home Renovations:
- Save up
- Credit score optimization
- Personal loans
- Mortgage refinancing
- Grants, Loans, and rebates
- Credit cards
The best advice out there would be to plan ahead and save up as much as possible. The more funds you can have available to put towards the projects you want to complete the better. Debt is a burden that no homeowner wants to deal with.
If you need help with your condo renovation, please contact Vancouver condo renovation contractors at Craftsmen.