Toronto kitchen renovations – is that the renovation that adds the most value to your house to eliminate the linoleum flooring and update the cabinets? Or you might be wondering, should you tackle the bathroom with the green toilet or the basement with the 1980s wood paneling? Which projects add the most value? Your answer depends a lot on what you will be doing with the house over the next five years.
Some improvements give a larger return on investment than others
Here is a list of renovations with their typical rates of return:
- Painting (recoup 109% on immediate resale)
- Kitchen Renovation (recoup 81% on immediate resale)
- Hardwood Flooring (recoup 75% on immediate resale)
- Basement Renovation for additional living space (recoup 74% on immediate resale)
- Bathroom Renovation (recoup 70% on immediate resale)
If you are selling shortly:
With most renovations you get back only a portion of the cost you spent if you sell immediately. The exception to this is painting. So, if you are short on time and need to sell quickly, then a fresh coat of paint will really enhance the home’s value in a flash.
If you are selling within the next two years:
Based on the return on investment in the list above, it would make sense to tackle the project that gives the highest return first. In that case tackle the kitchen. It would make sense to do this one improvement first and then just paint the place at the two-year mark just before selling. If the green bathtub survives the period, make sure to choose a colour for the bathrooms that complement rather than clash with the fixtures.
If you plan to sell after five years:
Get that basement done! Put in an income producing second unit so that you will have positive cash flow in a short while and use the surplus to finance the other renovations needed in the house. Within the first five years you usually can recoup all the money you spent to build, in addition to increasing the resale value of your home. Next do the bathrooms, so you can enjoy living there for beyond the five-year mark. Finally do the kitchen, making sure to put in stone or quartz countertops. This would have been the latest upgrade if you decide to sell after the five years and will look most appealing to potential buyers.
If you are retiring here:
Since you have no plans to move any time soon, your home’s value will be more in the conveniences rather than dollar amount you can sell it for. All updates need to facilitate aging in place while at the same time providing some creature comforts. So, you will want to eventually update all the major areas of the home.
You may want to do the basement for rental income or to house a caregiver, should that become necessary in the future. Also, adding a full bathroom on the main floor beside a room that can be an office or later a bedroom would make sense. This bathroom should have a barrier-free or curbless shower to make it easier as you age. Attention should also be given to the kitchen; have pull down shelving, lazy susans, and roll out trays installed. These and other updates will make the home more comfortable now and in the future.
Now that you know which upgrades give you the best bang for the buck, plan ahead giving consideration to your timeline. You will be able to decide with confidence what to do first. We are here to help with your Toronto kitchen renovations or any one of these projects.