November 1, 2013

Which Home Renovations Yield the Best Return on Investment?

Whether you’re renovating to meet your changing needs or trying to improve the overall look of your home, it never hurts to consider what the return on your design investment will be.

According to yearly surveys done by the Appraisal Institute of Canada (AIC), refurbished kitchen and bathrooms continually yield the best return on investment, with 75 to 100 per cent of spending for these renovations recovered at resale. Interior painting, a new roof or heating system and a finished basement also ranked high (see full list below).

Of course, a high return on investment is only possible if the renovation is done tastefully, adheres to local building codes, and is in line with current trends.

Avoid projects that set your home apart from other houses in your neighbourhood. The AIC advises: “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”

Whatever your reason for updating your home, Monarch designers can help. Working with you from conception to completion, our customized design services include complete project management and the use of licensed, insured and bonded tradespeople. In addition, we offer three lines of custom cabinetry covering a range of budget options perfect for your house, condominium or cottage.

Percentage of investment recovered upon resale:

Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 100%

Interior painting: 50% to 100%
Roof replacement: 50% to 80%
Replacement of furnace or heating system: 50% to 80%
Expansion (addition of family room): 50% to 75%
Doors and windows: 50% to 75%
Deck: 50% to 75%
Installation of hardwood floor: 50% to 75%
Construction of a garage: 50% to 75%
Fireplace (wood or gas) 50% to 75%
Central air conditioning: 50% to 75%
Finished basement: 50% to 75%
Wood fence: 25% to 50%
Interlocking paving stones on driveway: 25% to 50%
Landscaping: 25% to 50%
Asphalt driveway: 20% to 50%
Pool: 10% to 40%
Skylights: 0% to 25%