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Renovating to Maximize Your Investment

Your personal style can transform your house or condo into your true “home.” But which changes or renovations make the most sense when it comes to building value in your home? And will you need a loan to pay for them?

As shown in the figure to the right, some home renovations result in a higher average payback at the time of sale.

Before starting a home renovation project, it's a good idea to consider the following:

 

Top 10 Home Renovations and Their Payback†

  1. Bathroom (75-100%)
  2. Kitchen (75-100%)
  3. Interior Painting
    (50-100%)
  4. Exterior Painting
    (50-100%)
  5. Roof Shingle Replacement
    (50-80%)
  6. Furnace/Heating System
    (50-80%)
  7. Basement Renovation
    (50-75%)
  8. Recreation Room Addition
    (50-75%)
  9. Installing a Fireplace
    (50-75%)
  10. Flooring (50-75%).
 

How long will you be in your home?
If you plan to stay for several years, your needs and desires for your living space usually become more important than adding resale value.

On the other hand, if your main aim is to boost your home’s resale value, you’ll probably want to perform the work that offers the best potential payback. You don’t want to put money into renovations that buyers won’t pay for.

Also check out the amenities in other houses in your neighbourhood. It’s good to bring your home up to par with others nearby—but you don’t want your renovations to make your home the most expensive on the street. Ask a real estate agent for help with the decision-making process.

How will you pay for the renovation?
Ideally, you would pay in cash, but before you liquidate assets, do the math: depending on the type of investments you hold, cashing out may not be in your best interests. You may find that the costs of financing are lower.

RBC Royal Bank offers a variety of financing options to meet a wide range of home renovation needs. Learn more about choosing the right financing option.

 
 

Make Your Home Improvement Dreams a Reality

Talk to a credit specialist to find the right financing option for you.

  • Call 1–866–719–2880 today!
 


Personal lending products and residential mortgages are offered by Royal Bank of Canada and are subject to its standard lending criteria.

 

Take Action

  • Call 1–800–769–2511 to talk to a credit specialist about your financing options.
 
 

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