Low mortgage rates have been a boon for homeowners. However, as home prices have risen, so too has the cost of trading up to a bigger home. Many homeowners have turned to renovation as a more cost-effective alternative to a new home.

In addition to sprucing up your home and making it more attractive to inhabit, the right renovations can increase its resale value.

According to the most recent (2004) Renovations and Home Value Survey conducted by the Appraisal Institute of Canada, bathroom and kitchen renovations provide the highest possible payback potential when selling a house (75% to 100% of the renovation costs), while interior and exterior painting can help you recoup between 50% to 100% of the costs.

Here are the average payback potentials of other renovations (expressed as a percentage of the cost of the renovations) :-

• Roof shingle replacement (50% to 80%)
  
• Furnace/heating system (50% to 80%)
  
• Basement renovation (50% to 75%)
  
• Recreation room addition (50% to 75%)
  
• Installing a fireplace (50% to 75%)
  
• Flooring (50% to 75%)
  
• Constructing a garage (50% to 75%)
  
• Window/door replacement (50% to 75%)
  
• Building a deck (50% to 75%)
  
• Central air conditioning (25% to 75%)
  

Summer Renovation Tip: Get your central air conditioning inspected now to avoid the rush and keep your home cool during the sweltering summer months.

Thanks to The Canada Mortgage and Housing Corporation & Scotiabank

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