Whether you’re the kind of person who goes into a renovation excited or filled with anxiety, you should give yourself the time to carefully think through all the important decisions you’ll have to make throughout the process. To avoid spending money on choices you’ll regret, here are some questions to ask yourself as you consider your next home update.
How and when will you use the space?
Think carefully about why you want to renovate in the first place and be realistic about how much use the room will get. How often will you use the home gym, or how much use will the kids’ playroom get?
How are you going to pay for this?
According to a recent report from insurance provider Aviva Canada, 14 per cent of those who renovated during the pandemic did it on impulse, with eight per cent saying they spent too much, and five per cent stating they have regrets. No one should have to regret their reno, but spending can easily get out of hand. Be sure to set out a budget beforehand, consider expenses and comparison shop. Having a plan and a solid idea of what you can afford is always best, even if you deviate from it during the project.
“When considering making renovations to your home, it’s always a good idea to ensure you have a plan in place,” says Phil Gibson, EVP and managing director of personal insurance at Aviva Canada. “Canadians looking to make major changes to their home should know that renovations like finishing a basement, removing structural supports or building an addition may impact their insurance coverage as they can change the home’s rebuild value. Your insurance representative can help ensure that your home is covered for its true value, giving you peace of mind should the unexpected happen.”
Does return on investment really matter to you?
Some updates are better than others for resale value and securing more equity in your home. For resale, a fresh coat of paint is the best reno you can invest in for ROI. Updating the kitchen or bathrooms is costlier, but can add that wow-factor when trying to sell in a challenging market. On the flip side, a pool might be a fun addition but don’t count on making back your investment. In fact, some buyers might be turned off by the cost of having to operate or remove a pool. While you shouldn’t base your reno plans based on ROI alone, it’s worth considering so you go into the project with a realistic mindset.
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