4 Potential Reno Ideas Best Left Alone
If you’re set to do some home renovations, there’s one thing you want to make sure of—that you’ll ultimately get a good return on your investment (ROI). Some Canadians go all out on upgrades of their humble abodes, and that’s terrific if you plan on spending many years in your home. But there are some renos that might be best left undone if you’re concerned with ROI, or if you’re an investor looking to fix and flip. Have a look at these four things you might NOT want to do: A fix that’s too nice. This particularly applies if you’ve bought an income property or a property you’d like to fix up and resell. It’s also prudent advice if you’re not planning on staying in your home for the long haul. Don’t go overboard on the fixes. Of course, you’ll want to stay away from shoddy materials, but installing marble countertops, elaborate chandeliers and top-of-the-line crown molding when you’re planning on selling or renting the property won’t do your pocketbook any favours. A home office might be sweet, but… Spending a lot on creating a home office can actually be more detrimental than beneficial for your home. In fact, statistics show that it can actually decrease your ROI by 5 per cent. While you’re working at home, give yourself a comfortable space, but don’t spend a lot, and make sure it’s easily convertible into another type of space if you decide to put your home on the market. The massive master. The master bedroom is one room that’s also best left undone unless you plan to spend years in your home. You can easily lose about 40 per cent of your investment by sinking too much into this space. So, if you’re planning on renovating it, do it because you want to enjoy it yourself, not because you think it will pad your bank account if you go to sell. In-law suites. If you want grandma and grandpa to come live with your family, by all means you might want to think about revamping or adding a space to accommodate them. Don’t do it, however, because you think it will add to the resale value of your home. It likely won’t. Actually, this is another of those renos that can decrease your ROI by about 5 per cent. Having said that, here are some great reno ideas that will give you a terrific ROI: A kitchen remodel, up to 85 per cent; a deck or patio, up to 80 per cent; new siding, up to 80 per cent; replacing the windows, up to 77 per cent and remodelling the bathroom, up to 65 per cent.
Elevating Your Listing With Staging
Staging is all the rage these days. Having a professional touch added to your home as you prep it to sell or rent seems like a no brainer, but how do the numbers really stack up? After all, in Canada, staging can run anywhere from a couple hundred dollars for a consult to an actual percentage of your home’s selling price. Make Buyers Want to BuyAccording to statistics, 81 per cent of buyers say that a professionally-staged home helps them visualize the space as one they could call their own, thus increasing their chance of making an offer. Additionally, staged homes reportedly stay on the market for 73 per cent less time than an unstaged home. Sell for More Than AskingWhile not everyone loves the idea of shelling out extra money for a professional stager, studies show that a staged home can sell for more than asking. Selling for more than 6 per cent of the asking price, for example, could mean an extra $50,000 or more in your pocket depending on which Canadian city you’re selling in! The bottom line? When you’re selling something as large and important as your home, wouldn’t you want to do everything possible to get it sold as quickly as possible and for as much as possible? That’s where staging comes in. And, with very real numbers to back it up, it’s definitely something worth considering.
Costs to Think About When Moving
When people are crunching numbers in preparation for upgrading or downsizing homes, they often forget to factor in costs of the moving itself. The truth is, using a professional mover can add a few hundred dollars to the equation, even more if you’re moving a longer distance. Here’s how it stacks up: Moving Locally Most provinces in Canada charge an average of $100 per hour for moving services. If you’re looking for certain times of the month or week, higher charges may apply. You might also be on the hook for cost such as: Packing Services: approximately $50 an hour Truck Fee: a one-time fee of approximately $100 Special Handling or Packaging: approximately $50 an item Tax: varies from province to province but could be up to 13 per cent of the total cost Moving Long Distance If you’re moving over 150 kilometres away within Canada, you’ll likely be looking at long-distance charges, which are usually calculated based on both the weight of your items and the distance you’re travelling. In most provinces, the first 500 pounds usually come with a fee of approximately $500. On top of that, you’ll likely pay another $500 for each 500 pounds above that, and between $200-$400 for unpacking each 1,000 pounds. Moving by Yourself Many people attempt to cut costs by doing the move on their own, but this comes with costs too. If you’re using your own vehicle, you’ll have to pay for gas. If your vehicle isn’t large enough, you may have to look at a truck or cargo van rental, which, while likely less expensive than professional moving services, can still add to the bill. You’ll also have to take into account the cost of packing materials and any time you take off from work too.
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