A lot of people see their home as an investment. Although I don’t totally agree with this statement, as a home owner, renovations are always more or less on my mind.
Being an Accountant and trying to be as money-conscious as possible, costs are also always on my mind…and they should be in yours too!
Home renovations are not cheap, even when you do them yourself or on a budget. A lot of people justify spending the money by saying the work will increase the property value when they sell. Not necessarily, and even less so if you renovate on credit!
Your new kitchen appliances won’t be so new anymore if you stay 5 years or more in your house. Same goes for the hardwood floors or the counter tops. If you plan to stay in your home, renovations are more for your pleasure and personal tastes than for increased resale value.
Actually, some renovations may decrease the value of your property, such as putting a swimming pool or a hot tub or having intricate landscape. A prospective buyer could be turned-off by the additional costs to maintain these items.
The renovations that bring the most “return on investment” are kitchen & bathroom upgrades. Next, come the bedrooms. Be careful not to change the original use of these. Converting a bedroom into a home office or a gym may work against you.
Painting can also yield good results, as long as you choose neutral colors.
But more important than any renovations, is maintaining your home. You definitely won’t sell if the roof or the hot water tank is leaking!
The previous owners of my condo had maintained it very well. When I had the home inspection done, nothing stuck out. It gives me more financial room to repaint, change the light fixtures and the kitchen appliances. The kitchen and bathroom is where I plan to do some work next.
My strata is going to take care of some yard and patio renovations. But I don’t want to spend a ton of money on this item.
Since I plan to stay in my condo for years to come, I am not in any hurry.