(NC)—Anyone who has lived in the same house for a
number of years inevitably gets the reno itch. While a gut job is
expensive, home renovations are still an affordable way to upgrade
without moving.
“It's natural that after a certain point, homeowners
start to notice the flaws in their homes,” said Farhaneh Haque, director
of mortgage advice at TD Canada Trust. “It could be that the layout is
no longer practical, the bathrooms are outdated or the exterior needs
some curb appeal. Each of these areas can increase the property value of
a house while making it more suitable to the homeowner's needs.”
Before picking up the hammer and hardwood, Haque recommends homebuyers plan for the cost of a home renovation:
• Consider upgrades that save money: Green
options, like installing insulated glass windows, may cost more
initially, but they can make sense financially in the long-run when
future energy bill savings are considered.
• Research and budget for the unexpected:
The reality is that a home renovation often costs more than planned.
Before starting any work, consult with at more than one contractor to
help accurately assess costs of materials and labour. It's also a good
idea to build a buffer into the budget for any unexpected expenses.
• Explore financing options: A home equity line of credit (HELOC) allows homeowners to use the equity
they've already built in their homes to finance upgrades at a
competitive interest rate. Consider using a HELOC to pay different
tradespeople as the work progresses to avoid paying interest on credit
that hasn't been used. With ongoing access to credit, it can be tempting
to go overboard, so remember to stick to the budget.
For further advice on financing a renovation, visit: www.tdcanadatrust.com/homeownership.
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