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Which renovations offer the best payback
Written by Administrator
Wednesday, 06 May 2009 18:27
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As a professional in the design and building industry, I am often asked the question "Which renovations offer the best payback?" By the time this question comes up, usually the decision to renovate has been made. No matter the reasons for renovating, whether short term return or long term enjoyment, the following are the most requested renovations and, coincidentally, those providing the best payback. The top four are: Kitchen renovations (which often include a small addition and deck area), well thought out and tastefully done still offer the top payback. Bathroom renovations rank up there with kitchens. "Sometimes just regrouting tile and doing an attractive paint job can do wonders and the full costs can be easily recouped", according to Nancy Benson, a top agent with Rhodes Real Estate. Landscaping & exterior painting make it as one of the top payback choices of Nancy Benson. "It is the curb appeal--the initial positive impression." Many owners underestimate the impact a little front yard landscaping and exterior upgrading of the main entry area can have. Interior painting and decorating tastefully done have always shown strong payback potential. Creamy walls with off-white trim, plaster or wood ceiling mouldings, new trim, glass block features, window treatments and prefinished hardwood floors are all popular finishing touches. In most cases, the payback potential of all the above could average 100% and better. In the case of kitchens as high as 200% according to a survey by the Appraisal Institute of Canada. Other renovations offering good payback potential generally in the range of 50% are main floor additions (family/great room), new windows and doors, new heating systems and central air. The payback on basement conversion and finishing may vary widely. Walkout basements and basements with lots of natural light and good access from the main floor would offer the best payback. Attic spaces in smaller homes could provide low cost additional living space and are usually a good return on investment. Energy efficiency upgrades are a matter of course these days and are often done as part and parcel of renovation projects. The payback on these upgrades is generally on the operational side and usually over the longer term. The other side of the coin are renovations that offer little or no payback at all. It is generally accepted that backyard pools and spas offer very little in the way of payback although they will bring hours of enjoyment to the owners and are less expensive than (and a great alternative to) a cottage. A 'botched' renovation, poor quality or design, and shoddy work offers no payback and, in most cases, will contribute to a decrease in value. An overly luxurious renovation of a small residence in a modest neighbourhood or a full finished high quality basement renovation in an already large residence will offer very little return when compared to the money spent. Although the payback potential is an important consideration, the long term enjoyment of a renovation done well is of greater importance to most people considering the renovation option. Gerhard Linse is President of Gerhard Linse Design and Building Consultants, specializing in renovation design, custom homes and commercial projects. |
