Find out the return on investment for your renovation
April 25, 2011
There's no question – investing in your home increases the value of your home and enhances your quality of life. However not all renovations have the same return on investment when it comes time to sell. Here is a list of the top home renovations and their return on investment, according to the Appraisal Institute of Canada, a self-regulated organization that is reputed to be the most authoritative voice in terms of house evaluations:
- Kitchens upgrades: 75% to 100%
- Bathroom upgrades: 75% to 100%
- Interior painting: 50% to 100%
- Exterior painting: 50% to 100%
- Window & doors: 50% to 75%
- Exterior siding: 50% to 75%
- Basement renovation: 50% to 75%
- Family room addition: 50% to 75%
- New fireplace: 50% to 75%
- Flooring upgrades: 50% to 75%
- Heating system upgrade: 50% to 75%
- Construct a garage: 50% to 75%
- Roof replacement: 25% to 75%
- Build a deck: 25% to 75%
- Central air-conditioner: 25% to 75%
- Home theatre room: 25% to 50%
5 factors that influence the return on your investment:
- Your Neighborhood. What is the value of your house compared to your neighbours. If your house value is below the average you can recover a larger part of the renovation costs.
- Your Taste and Choice of Finishes. Do you have a unique sense of of taste? Your choices may be beautiful and exotic but will the next buyer be willing to pay for your exquisite sense of style. Realistically speaking, some renovations will be purely for your enjoyment.
- The Renovation Cost Relative to the Value of the Home. A $50,000 kitchen upgrade may be too extravagant for a $300,000 home.
- Good Repair. Keeping your home in good repair and maintenance has a positive impact on its resale price.
- A Well-Done Renovation. Generally speaking a well-done renovation will have a positive impact on the value of your home. In actuality, a poorly done renovation will have the reverse effect.

