At this point, you’re tired of hearing about how inflation & increased interest rates are impacting the housing market. Unfortunately, you won’t hear an end to that narrative in 2023, inflation is expected to continue, and rate increases will likely continue at least through to Q2 of 2023.
Not only does this mean that home sales will be less frequent and prices will likely fall slightly, but you’ll also see a return to home renovations.
When people can’t afford to move or, more accurately, don’t want to make substantially higher monthly payments on a new home, they will find ways to be happy in their current home; and that means home renovations.
Now, by no means will the cost of home renovations be drastically reduced or more affordable than they have been in the last two years. We’re still trying to recover from supply chain disruptions caused by the pandemic, and the cost of labour is no joke. As buying power in the real estate market is reduced, people are more willing to change their current property to make it fit their needs.
If your options are to purchase a new home that meets your criteria but potentially doubles your monthly mortgage payments or invest a few thousand dollars into your current home to make it meet your needs and, in turn, increase its value, what would you choose?
If you choose the renovation route, here are a few tips that might help you!
- Look into a HELOC to fund your renovations.
If you have equity in your home that you would like to access to complete renovations, talk to your lender about a HELOC.
A HELOC is a Home Equity Line of Credit secured by your home that gives you a revolving credit line to use for significant expenses. In most cases, interest rates on your HELOC are lower than other types of loans and can be tax deductible.
To qualify for a HELOC, your lender will look at your credit score, employment history, income and debts and assess your home’s value against what you owe on your mortgage.
- Apply for the Canada Greener Homes Initiative.
The federal government offers the Canada Greener Homes Grant as an incentive to invest in renovations that reduce your home’s carbon footprint.
This program can help cover the cost of renovations, including:
- Up to $5000 for home insulation
- Up to $1000 for air-sealing
- Up to $5000 for window & door replacement
- Up to $5000 for the installation of renewable energy (solar panels)
To check your eligibility and learn more, click here.
- Don’t be afraid to get your hands dirty.
You can save a lot on renovations if you’re willing to do some work yourself.
Many small cosmetic renovations can easily be done without the help of a professional, like painting, replacing kitchen hardware, installing custom storage solutions, refinishing or restaining cabinetry, etc.
Depending on your level of experience, you can do even more. The only projects we would never recommend doing yourself are electricity, plumbing or HVAC maintenance.
If you have professionals coming in for renovations, see what prep work you can do ahead of time. If you’re installing flooring, can you remove the old flooring? If you’re replacing cabinets, can you remove the old ones? Finding small ways to reduce costs will help you in the long run.
If you’re planning on renovating your home in the new year, it might be worth your time to consult a realtor in your area to see what renovations add value to your property.
If you live in Ottawa and want an expert opinion on home renovations that add value, reach out to our team! We’d love to give you personalized advice based on your property.