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Renovations that make
sense
Want to do some renos but don’t how much
typical/basic renovations could – and should – cost? Rachel Naud talks to
experts about what to do, where to do it and what it will cost you.
Liz
Bruckner’s first home could have gone up in smoke if it weren’t for the
devotion of her and her husband, Ryan Clusiau.
“We
seriously thought it was a crack shack or a grow-op or something,” says
Bruckner. “You could tell nobody gave a s**t about it before. But it had a lot
of potential. It had good bones.”
Which
is why the couple purchased the Toronto Upper Beach two-storey, semi-detached
home for an uber-affordable, often unheard of in Toronto, $242,000.
But
to make it liveable and a place to call home, Bruckner and Clusiau had to do
some major renovations.
The
prior owners had rented each floor so there was a kitchen on every level. The
main floor looked like a ghetto-fab fixture from the ’50s and the upstairs
bathroom, although it boasted a beautiful clawfoot tub, was undesirable. The
basement was adorned with a ’70s orange turned brown shag carpet and a couch
that had sat there for at least as long as the carpet.
Needless
to say, they had their work cut out for them.
But
step by step, and $50,000 later, the couple worked away and eventually
transformed the beast of a house into a beautiful home.
“It
was funny,” says Bruckner. “I’d ask Ryan while we were doing the renovations,
do you think the house loves us? We’re the first ones who had ever cared about
it before.”
Four
years later her question was answered.
Whether
for love or money, the house paid them back for their efforts and sold for a
cool $412,000.
Like
Bruckner and Clusiau, many first-time homeowners fall in love with their
property as they envision the home it will become - once they’ve put their own
mark on it.
Home
theatres, gourmet kitchens and luxurious bathrooms are what such dreams are
made of.
That
is, until reality kicks in.
With
average house prices sitting at about $306,336, usually a lot of first-time
homeowners don’t have a lot of extra cash floating around for renovations.
Which is why they should choose wisely when it comes to deciding what rooms
should get a facelift and what areas can get away with just a mini-makeover.
Starting
off
When
Quintin Johnstone, a Toronto-based real estate broker for Sutton Group, is
asked by first-time homeowners what to look for in order to properly access
what a renovation really involves, he sends them to their living room, to sit
on their couch with a bowl of popcorn and watch the 1986 hit, ‘The Money Pit’
before planning any sort of renovation.
“Most
people hire a friend to do a home renovation and blindly jump into renovating a
home without doing the proper homework first and find out much later that their
risk was high and didn’t even know it,” says Johnstone. “The reason I say this
is because in most cases, people jump into renovations blindly and find
themselves in real and sometimes very serious trouble.”
This
is why before moving forward with any renovation, first-time homebuyers have to
come up with an educated plan.
Once
they decide what renovation they want to do, it is imperative that the first
step a homeowner should take before partaking in any renovation is to a
bookstore, home improvement store or online to do their due diligence in
research. Find out what products are available and look at different price
points so whether they’re doing the
And
once they’re squared away with all the facts and figures, the next thing they
should be evaluating is why they want to do it in the first place.
“Homeowners
should consider what their renovation needs are versus their wants and what
their short and long-term renovation goals are,” says Abby Buford, spokesperson
for Lowe’s.
Homeowners
should be asking themselves if the existing space fits their needs and does the
space have potential for future needs? Can they renovate existing spaces or are
they looking to change existing spaces like taking down walls? And what will this renovation really entail?
And more importantly, what will it cost?
According
to a recent Lowe’s
Although
there’s no such thing as a typical renovation, Henry Jansen, president of
Criterium-Jansen Engineers, says the average kitchen renovation costs $15,000
to $25,000 and bathrooms usually run between $10,000 and $15,000.
When
breaking it down, Jansen says budget-conscious homeowners can expect to pay
$3,000 to $5000 on new kitchen cabinetry, $500 - $600 on hardware, $600 on
fixtures, $300 for a laminate countertop (granite will run you about $1,200)
and flooring can cost anywhere from $200 (for vinyl) to $1,000 (for hardwood).
When
it comes to the bathroom, stylish vanities are going for even more attractive
prices. In fact, frugal homebuyers can find one for as little as $300 (think
the small Canadian Tire version) or can spend up to $800 for one with a trendy
bowl-shaped sink that sits on top. Bathroom fixtures can be found for about
$140 and toilets run between $200 and $500, depending on if you choose the
water-saving variety. Vinyl tile flooring can be found for $150, while the
stone variety will set you back approximately $300. New bathtubs can be found
for approximately $600 - $800 depending on the size, depth and other features
it contains.
But
money is only half the equation. The only other factor worth as much as money
is the time it takes to do the
Facing
the facts about how much time it really takes for a renovation to really take
is the first step in the right direction of home renovation.
“The
whole finishing a kitchen in 17 minutes on TV is not realistic,” says Bryan
Baeumler host of HGTV’s Disaster DIY and president and CEO of Baeumler
Quality Construction. “Make sure you have a plan before you start renovating
because a lot of people start swinging a hammer before they even come up with a
plan…and all of a sudden I show up with bunch of camera people and it’s a bad
day.”
After
the homebuyer has a plan, budget and schedule in place, they should look at all
the figures and ask themselves the really big question – will I get my money
back?
ROI
A
homeowner’s return on investment is largely dependent on what room is renovated
as there are key areas in the home that garner more ROI than others.
Kitchens
and bathrooms are no-brainers. They have been long known as the key holders to
capital appreciation in the home.
“Kitchen
and bathrooms usually earn a ROI of 50 per cent if you get a contractor to do
it,” says Jansen. “Done by yourself, it could go up to 70 per cent. If you
spend $20,000 on a kitchen, you have increased the home’s value by $30,000.”
But
not every kitchen or bathroom
“If
you have a 10-year-old home and tear out the kitchen and put a new one in,
you’re going to get very little back, maybe 25 per cent” says Michael Roman, a
senior appraiser from
Although
kitchens and bathrooms are the key rooms in home renovations, homeowners don’t
have to lose out on ROI if they can’t afford to do a complete overhaul.
Just
adding new cabinet hardware, installing modern lighting and replacing flooring
and countertops can help the spaces look new, fresh and clean,” says Buford.
Johnstone
adds stepping out of the box (or the house in this case) and investing in curb
appeal is another great way to get the most bang from your renovation buck.
“Some
of the best returns on investment are the most unlikely,” says Johnstone. “For
example, a house that is professionally painted is relatively cheap but can pay
huge dividends for the home seller. An upgrade in curb appeal can do wonders
simply by using a shovel and some new flowers and shrubs.”
The
Home Renovation Tax Credit
The
good news is it has never paid off more to do home renovations than it does
now, or at least until
Condo
renos
Condos
are popular abodes for first-time homeowners. And just because a condo building
is comprised of matching units, doesn’t mean homeowners can’t make it their
own. But condo owners do have certain things to take into consideration before
doing a renovation and have more limitations than their house-owning cohorts.
“If
you live in a highrise with steel and rebar, the plumbing and the electrical is
essentially where it is,” says Baumeler. “It is difficult and costly. Obviously
you can not be chipping away any concrete to move conduits so you are very
limited in a condo as far as layout and moving things around. You’re pretty
much just replacing fixtures where they are.”
Just
as house owners have to get the appropriate permits from the city to make
electrical or structural changes so do condo owners. However, condo owners also
have to get permission from the building’s board of directors to do the
Common
1. Do one project at a time.
2. Do make sure your budget
includes a 15 to 20 per cent contingency fund to cover any unforeseen problems
or issues.
3. Do your research. Look at your
options in products, price points, contractors and installers.
4. Don’t bite off more than you can
chew. If you lack the skills or proper tools and know-how, hire someone to do
it for you.
5. Don’t go with a contractor just
because he talks a good story. Check out his background and references.
6. Don’t let exposed areas sit for
long periods of time (ie. open windows, cut-out roofs, etc). Water penetration
quickly deteriorates construction products and can also lead to problems down
the road.
This article originally appeared in:
The First-time Homebuyers Guide
Canadian Real Estate
Summer 2009