Typical renovation payback values can help you prioritize reno projects.
Whether it’s fixing a leaky ceiling, making the home more energy efficient by replacing windows, or simply making a change to have a different look, everyone has a different reason for wanting to renovate. But whatever the reason renovations can be a great way to enhance your quality of life, while improving your home and increasing its resale value.
Once you factor in the money you can save on heat, electricity and water, many renovations also offer a great return on investment – up to and including paying for themselves!
To help homeowners decide which renovations are right for their home, Canada Mortgage and Housing Corporation and the Appraisal Institute of Canada have analyzed the potential payback range that some of the most common home improvement projects will typically have on the resale value of a home.
The best returns on renovation investments are projects that target your kitchen and bathroom. They recover 75%-100% of your investment. Your next best investment is interior/exterior painting, which has a return of 50%-100%.
The lowest payback range involves renovation projects like swimming pools or skylights. The recovery for a pool is about 10%-40% and it is up to 25% for a skylight.
|Roof shingle replacement||50%-80%|
|Furnace and heating systems||50%-80%|
|Constructing a garage||50%-75%|
|Window and door replacement||50%-75%|
|Central air conditioning||25%-75%|
|Building a deck||50%-75%|
|Adding a recreation room||50%-75%|
|Builing a fence||25%-50%|
|Installing a fireplace||50%-75%|