Renovation Return on Investment

Which home renovations will give you the greatest return on your investment?

With the milder temperatures and longer days finally here, this is the time of year many Canadians start thinking about home improvements. Many are also interested in knowing what improvements will provide a good return on investment. The Appraisal Institute of Canada (AIC) offers some general advice:

  1. Choose improvements with long life expectancy.  Heating, ventilation and air-conditioning (HVAC), roofing, exterior siding and windows are smart investments that can provide worry free improvements for 15 years or longer.
  2. Invest in modern updates in high-traffic areas. Obvious examples are bathrooms and kitchens. Not as obvious are replacing door knobs, resurfacing cabinets, changing fixtures and countertops, and replacing the front door.
  3. Don’t underestimate the value of inexpensive updates. A fresh coat of paint is the gold standard here. According to the AIC, the return on investment ranges from 50% -100%! Other inexpensive updates include modern lighting fixtures and switch plates, as well as light landscaping and gardening.
  4. Consider energy-efficient renovations that have a high return relative to cost. Not only do energy renovations have one of the highest paybacks relative to cost, energy efficiency leads directly to reduced operating costs over the long run.

This infographic from Cottage Life shows the most effective upgrades for anyone planning to make home improvements this year.

Infographic from cottage Life