Planning Home Renovations? You're Not Alone
If you’ve been thinking that it’s finally time to rebuild that moldy patio or put the finishing touches on the kitchen you’ve always wanted — you’re not the only one.
A record number of Canadians report plans for home renovations, according to the 2021 Scotiabank Housing Poll.
After more than a year now of being stuck at home, it’s no surprise that so many Canadians are looking to change their surroundings.
According to the poll, Canadian homeowners are more likely to plan renovations than buy or sell their current home — which also isn’t too surprising to anyone who’s been paying attention to the real estate market. Why go through the stress of buying and selling a home when you can just make some changes to your existing one?
Six in 10 Canadian homeowners have plans to renovate their home within the next two years, with backyards, kitchens and bathrooms topping the list, Scotiabank reported.
Some other highlights from the poll:
More than a third of all Canadians (36%) think that housing prices will fall within the next 12 months as a result of the pandemic. That’s an increase of 25% since 2020.
Canadians in the Atlantic provinces are the least likely to postpone their home-buying because of negative financial impacts from the pandemic (24%). That’s compared to housing in places like BC, Quebec and Ontario.
Among Canadian homeowners planning renovations, one in four plan to begin within the next six months.
Almost half of all Canadian millennials (48%) are considering moving out of the city to avoid the big-market housing prices. That’s compared with 27% of those aged 35-54 and 15% of those over the age of 55.
Regionally, plans for renovations are highest in the prairie provinces, with 70% in Manitoba/Saskatchewan, and 62% in Alberta.
Top three renovation spaces for Canadians: backyards (33%), bathrooms (30%) and kitchens (28%).
The Scotiabank report also has some helpful tips for those looking to renovate their home.
Talk to experts
The first step is to make a general estimate of how much you can afford to spend on your renovations.
A financial or mortgage advisor can help you figure out a safe number for funding renovations. An advisor will look at your finances and help you see possibilities for flexibility, and tell you what equity or government programs you might qualify for.
Consider the costs
Understanding the full extent of the costs before taking on a renovation will save you money down the line.
If you're thinking of renovating soon, get a price estimate from at least two contractors, if not more. That will help you understand the cost of materials.
It’s also a good idea to research local by-laws and see if there are any permits required to build that extension. You don’t want to find that out when you’re halfway through an expensive project.
Expect the unexpected
Make sure you don't immediately spend your whole budget. Renovations often have surprise costs, and you want to leave yourself some financial room to deal with them.
Consider how you can create a safety net for yourself to protect you from unexpected expenses that may come up as a homeowner or when you're renovating.
Invest for the long term
Owning a home is a long-term investment. And renovations impact the value of your home.
Understanding the state of the housing market can help you realize the potential long-term gains of investing in your property.
If you’re feeling a little overwhelmed at this point, don’t be too worried! These are just tips to make your renovation as fun and cheap as possible.