The bigger the job, the better the return
Province
OTTAWA — As much as 100 per cent of the cost of a fully renovated kitchen or bathroom, often done with the help of a contractor, can be recovered when it comes time to sell, a report released this week suggests.
Major renovations generally provide higher certainty of return than do-it-yourself projects, said the report prepared by Toronto-based Royal LePage.
“Those still are the No. 1 return on investment,” said Diane Usher, a broker with Royal LePage.
But she cautioned that contracted jobs must be approached prudently to ensure a decent return, and spending should be relative to the value of the property. “To put a $50,000 kitchen in a $200,000 condo isn’t going to give you as good a return on your investment,” Usher said.
Some Improvements made by the homeowner, like replacing a worn carpet or updating light fixtures, are good ideas but can be less effective in terms of the rate of return when compared with other projects.
She explained many people have success finding quality paints, decorating ideas and techniques on their own but renovations like landscaping are more challenging and returns can be lower without professional aid.
Approximate cost vs. approximate return on your investment
Do-it-yourself renovations
– Paint the interior: $1,000, 50-100%
– Replace carpeting with laminate (1,000 square foot space): $2,000, 50-75%
– Install new light fixtures: $2,000, 60-70%
– Groom exterior landscape: $2,000, 25-50%
– Replace knobs, hardware: $2,000, 75-100%
– Update the entryway: $3,000, 50-75%
– Replace carpeting/laminate with hardwood: $5,000, 50-75%
– Build a fence/deck: $5,000, 50-75%
Renovations that may require a contractor
– Install a main floor powder room: Under $5,000, 80-100%
– Reno bathrooms: $5,000-$8,000, 75-100%.
– Renovate kitchen: $12,000-$15,000, 75-100%
© The Vancouver Province 2008
