The spring market is at its hottest and many Canadians are considering a move, but with prices at record highs it’s not an option for everybody.
A new TD survey of existing Canadian homeowners and those hoping to buy a home has found that the majority of respondents are considering, or would consider, eschewing a move-in-ready home in favour of doing renovations.
“Many of our customers tell us they love their neighbourhood but their current home doesn't have enough space or it could use some upgrades,” said Pat Giles, associate vice-president of Real Estate Secured Lending at TD. “Situations like these motivate homeowners into making an important choice – do you move or do you renovate your current home? Given the cost and stress associated with moving, renovation is a popular choice among Canadians.”
Of the respondents who would consider renovating, the top three reasons are:
- To increase their property value (69 per cent)
- To upgrade their home's look and feel (59 per cent)
- To improve home efficiency – e.g. new furnance (48 per cent)
When considering the choice to renovate, 61 per cent of all respondents say that cost is the biggest concern.
To pay for the work, 43 per cent of those who would consider renovating say they would use money from their savings account or Tax Free Savings Account (TFSA) while 40 per cent would use a home equity line of credit (HELOC).
"Home renovation projects, whether large or small, are often going to come with both surprises and challenges," said Jeremy MacPherson, renovation expert and judge of the W Network's new show Game of Homes. "But there are steps you can take to reduce the stress that can often accompany a renovation project.”
Giles added, “Factoring in an extra 10 to 15 per cent on top of your anticipated costs can help keep you from running over-budget. Be prepared to make the trade-off decisions that inevitably come with renovations, and remember that at the end of the project you should love your home more than when you started."
Are you ready to renovate? Follow the flow chart on TD’s infographic below to find out.