Renovation projects, wisely chosen, can enhance the value of a home and provide a healthy return on investment.
According to the Appraisal Institute of Canada, the most profitable home renovations are kitchens and bathrooms, which generally result in a return on investment (ROI) of 75 to 100 per cent.
An interior paint job offers 50 to 100 per cent ROI, and a finished basement recovers 50 to 75 per cent of the original cost when the property is sold.
The lowest returns (between zero and 25 per cent) are realized for in-ground pools and skylights.
The top ten renovation plans among Canadian homeowners, according to a recent Bank of Montreal survey, revealed the following:
• Nearly half of homeowners surveyed plan to renovate their kitchens and bathrooms (48 per cent and 46 per cent respectively).
• More than one third are planning to undertake exterior renovations (36 per cent), landscaping projects (39 per cent), or basement renovations (38 per cent).
• Fewer homeowners are planning renovations to bedrooms (25 per cent), family rooms (21 per cent), dining rooms (11 per cent), home additions (7 per cent), or pools (2 per cent).