Are You Making Home Renovations this Fall?
When you think of home renovations, people often tend to think of repairing the roof in the summer; or redoing the landscaping in the spring. But the autumn season can also be a good time to take care of some of the projects around your home; and a recent BMO survey showed that nearly half of Canadians will be getting them done in the next few weeks.
According to the survey, which surveyed 1,000 homeowners in October, almost half of those surveyed said that they would be doing home renovations this fall. 32 per cent of people said that they chose this season because they wanted to complete their projects before winter arrived.
“Fall is a good time to focus on improvements and repairs for your home, as there are some things that may need to get fixed before winter rolls in,” says Laura Parsons, Mortgage Expert at BMO. “While the data shows a significant number of Canadians are focused on aesthetic upgrades, it’s important to consider projects that will increase a home’s energy efficiency – particularly as the weather gets cooler and energy costs rise.”
The survey also asked what renovations homeowners were planning on making. And it showed that people are putting their money in the right areas. Kitchens and bathrooms bring in anywhere from a 75 to 10o per cent return on the investment. 37 per cent of homeowners were making renovations to their bathrooms, while interior and exterior painting has a return of about 50 to 100 per cent.
But how are these renovations being paid for in the first place? And how much is being spent on them?
Most Canadians (54 per cent) are spending less than $1,000 on their projects, while 33 per cent are spending between $1,000 and $5,000. The majority of home owners (40 per cent) are using savings they have collected specifically for the intent of using them on home renovations. 25 per cent will use their general savings, and 25 per cent will use a credit card. Secured and unsecured lines of credit on the other hand, are being used by 14 per cent of people planning to work on their home this fall.
“Both major and minor home improvements have the potential to add significant value to your home, but it’s important to consider all of the financial factors involved, ” says Ms. Parsons of BMO. “A financial professional can help you determine the affordability of a renovation and ensure you get the greatest return on your investment without overextending yourself.”