Typical payback values can help you prioritize renovation projects.
Whether it's fixing a leaky ceiling, making the home energy efficient by replacing windows, or simply making a change to have a different look, everyone has a different reason for wanting to renovate. But whatever the reason, especially with today's government rebates and housing renewal grants, there are home addition ideas that can enhance your quality of life, while improving your home and increasing its resale value.
Once you factor in the money you can save on heat, electricity and water, many renovations also offer a great return on home addition costs – up to and including paying for themselves! To help homeowners decide which renovations are right for their home, Canada Mortgage and housing Corporation and the Appraisal Institute of Canada have analyzed the potential payback range that some of the most common home improvement projects will typically have on the resale value of a home.
The best returns on renovation investments are projects that target your kitchen and bathroom, with honorable mention to those projects that permanently upgrade the exterior appearance of your property. They recover 75% -100% of your investment. Your next best investment is interior or exterior painting, which has a return of 50% -100%. The lowest payback range involves projects like above or in-ground pools. The recovery for a pool is about 10% -40%. You should also factor in the margin of depreciation and how expensive it can be to replace the liner, pump or other tools of operation when qualifying your renovation projects.
It is recommended to consult the Better Business Bureau and do your due diligence when contacting the relative workers and contractors that will help you with your projects and residence upgrades. Also, it would not hurt to ask the company or contractor for references of their most recent projects, and contact them to establish self-confidence in the professionals you are hiring to adjust the largest investment you will ever make in your life!
Any of these in your home addition ideas list? Here are the typical payback ranges:
- Roof shingle replacement – 50% -80%
- Furnace and heating systems – 50% -80%
- Window and Door replacement – 50% 75%
- Building a deck – 50% -75%
- Basement – 50% -75%
- Adding a Custom Sunroom – 50% -75%
- Flooring – 50% -75%
- Constructing a Garage – 50% -75%
- Landscaping – 25% -50%
- Building a Fence – 20% -50%
Up-keeping older homes and aged property will save you in a competent of ways.
Excluded from the list above are direct maintenance and upgrades that can be done to your property to save you money and assist in the prevention of health issues.
By modernizing your ducts and air filtration systems you can prevent unwanted air spores and dust particles from circulating the outdated systems. Air testing Experts recommend you replace your duct-work every 20-25 years maximum. It is difficult to determine the exact payback value on a replacement of this magnitude, it depends on the size of the home, but it is guaranteed to benefit your resale value. It will also seal leaks and help save on your electrical and heating costs, an obvious win as a homeowner.