Make sure your Reno's Pay
As a result of current conditions in some markets, homeowners have become hesitant to spend money on a renovation project unless they’re sure it will improve their home’s resale value. However, some upgrades do still contribute to a home’s market potential, and a significant portion of their original costs will be recouped over a reasonable period of time, especially if the renovation includes cost efficiencies, such as energy conservation.
Kitchens
The appearance of a renovated kitchen is typically a valued addition to any home. However, when considering an investment in a kitchen renovation, remember that these upgrades can begin to show their age in as little as 10 years. Cabinetry, flooring, countertops and appliances often become the most obvious indicators of age. So if you want your new kitchen to remain fashionable longer, keep to more conservative styles, and address the basics when you plan. Ensure plumbing and electrical systems are upgraded for future appliances and that they are easily accessible for repairs or changes over time.
Bathrooms
New bathrooms always attract buyers. As personal time becomes increasingly precious, luxurious surroundings and personal products (like bidets and programmable shower units) will remain appreciated. New appliances will need extra space, fixtures and outlets. Remember that some of these designs can be expensive, so concentrate on comfort and convenience to keep budgets reasonable but allow for the potential of future upgrades. Re-Purposing and Saving Space Spending a lot of money to re-purpose a room will not necessarily make your home more valuable. For instance, turning a mudroom into a first-floor laundry room may not be appreciated by some buyers. However, adding organized storage cabinetry and shelving can create added space in a home. The addition of living and storage space is likely to attract more interest. Though a single room makeover may not have a major effect, the impact of having the whole house organized is sure to pay off.
Home Additions and Out Buildings
The potential to build a home addition or to construct a new building on your property depends on zoning bi-laws and permits. But, before you consider these expensive projects, make sure to evaluate them using the most up-to-date information on the real estate market. Consider your lot and home’s market value as it is now, and also with the new addition, versus similar properties in the neighborhood. Then talk to contractors for a quote per square foot. If you intend to sell, it is important to be able to accurately estimate what the total project will cost when completed. But, if your motive is to gain space, you may find it less costly (and less risky) to skip the renovations and buy a larger home.
Home Renovations Pay
Did you know that your home renovations can earn you substantial grants from the Provincial and Federal government? LiveSmartBC rebates and Canadian Eco Energy grants are provided to homeowners doing energy efficient renovations to their homes. To qualify for ecoENERGY incentives you must get a home energy assessment before and after your upgrades. These cost about $150 and turnaround time is 1-2 weeks for an assessment. Renovations must be completed within an 18 month period, and you will receive grants for improvements started after your first assessment. Conversions such as new windows and doors can earn up to $70/unit, replacement of an old furnace to a high efficiency gas or oil furnace is eligible for up to $1630, and the addition of a heat pump can earn as much as $1850. So if you are planning to renovate your home this year, this is an option worth investigating further. For more information go to http://www.livesmartbc.ca/homes/h_rebates.html
Canada Revenue Agency-Home Renovation Tax Credit
The Home Renovation Tax Credit (HRTC) will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010,
pursuant to agreements entered into after January 27, 2009. The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.
How the HRTC Will Work:
The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
For more details go to http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html#q1
