It\u2019s probably more helpful, then, to provide some\u00a0insightful information that can\u00a0help any homeowner make good decisions\u00a0if<\/em>\u00a0they are considering a home renovation.<\/p>\n This is particularly important given the current economic climate. By the end of 2016, various Canadian economists were\u00a0anticipating\u00a0a rise in spending when it came to home renovations. The Chief Economist of the Canadian Real Estate Association, Gregory Klump, believes that the\u00a0combination of limited housing supply and strong buyer demand\u00a0will prompt more homeowners to stay put and renovate, rather than sell and relocate.<\/p>\n Klump\u2019s predictions are supported by the last decade of home renovation spending.\u00a0According to Toronto-based real estate consultants, Altus Group, renovation spending has been rising for 15 years\u2014from $45-billion in 2006 to $71-billion in 2015. (The 2016 stats aren\u2019t in yet, but the forecast suggests that\u00a0this expenditure will\u00a0increase by 1.9%, or another $1.35-billion, by year-end.)\u00a0If we were to take the total renovation expenditures for 2015, each homeowner would end up spending, on average, about $5,000 on their\u00a0remodel project. If\u00a0home prices continue to rise, or even if prices taper off and stay stagnant at the current high valuations, the ongoing renovation trend is sure to continue.<\/p>\n To help you get the most here are five\u00a0tips to help you plan your home renovation.<\/p>\n From data\u00a0compiled from over 2 million users\u2019 search behaviour\u00a0and project posts,\u00a0TrustedPros.ca, a site that helps homeowners find and rate home reno contractors, found that homeowners consistently set unrealistically low budgets for a few of the most\u00a0popular renovation projects.<\/p>\n For instance, the national average budget for a kitchen renovation came in at just under $14,480\u2014at least $5,000 under-budget for the average Canadian kitchen renovation, explains Nicole Silver, spokesperson for TrustedPros. \u201cIt takes licensed electrical, plumbing and gas experts to install bare necessities in a kitchen,\u201d explained Silver, \u201cand these experts come at a price.\u201d Add in the extra cost of durable or high-end finishes and budget costs start to creep up quickly.<\/p>\n Another renovation project that homeowners tend to underestimate is fence construction. On average, Canadians budgeted just under $4,200 for a new fence, but average actual costs came in closer to $11,700\u2014about $39 per linear foot.<\/p>\n Homeowners also underestimated the cost of new floors and new windows, with average household reno budgets coming in at just over $3,250 and just over $8,520, respectively. \u201cThe anticipated floor budget is only realistic for very small spaces using low-end materials,\u201d explains Silver. \u201cWhile the anticipated window replacement budget covers five regular sized windows and no door replacements,\u201d explains Silver, who suggests that homeowners budget about $1,600 per window (more if installing or replacing specialty or large windows).<\/p>\n Many homeowners are\u00a0convinced that they only way to increase the value of their home is to spend a lot of money on high-end finishes and expensive home remodels. But home renovations rarely, if ever, offer a $1 for $1 return. In fact, sometimes the simplest or least expensive updates can give the best returns.<\/p>\n For instance, according to\u00a0Remodel<\/em>\u00a0magazine, re-insulating your attic can recoup as much as\u00a0117% on the reno dollars you spent, while you can expect a 92% recoup on the cost of replacing your garage door\u00a0and a 91% recoup on the cost of replacing your front, entry door.<\/p>\n Yet, these simple upgrades are not at the top of the reno-desire list, according to the data collected by TrustedPros.ca. In 2016, the top three reno projects across Canada were: bathroom remodels, basement renovations and the installation of a new deck.<\/p>\n <\/p>\n To get the most out of your renovation budget, then, you must first be honest: When completing a home renovation, you are spending money, not investing money.\u00a0With this in mind, consider the reasons why you want to update and remodel\u00a0and then spend accordingly.<\/p>\n <\/p>\n Still, in order to avoid unnecessary or unexpected costs when it comes to home renovations, you must first start with an accurate, honest budget.\u00a0Here are four\u00a0tips to\u00a0get you there:<\/p>\n No. 1: Get multiple quotes<\/strong><\/p>\n Never settle on a contractor before first interviewing and getting a quote. Better still, ask what their contract covers and how they handle ongoing communication and potential problems (remember, surprises can mean extra costs, so you want a clear-cut plan of how this will be handled, before it happens). No. 2: Stop comparing your home to HGTV<\/strong><\/p>\n Nobody renovates their kitchen, never mind their entire home, in just two weeks. Yet, the home shows on TV can leave us with the impression that renovations can be done either quickly or cheaply or both.\u00a0If you find your the type that likes to compare your house with the glossy mags the home reno reality shows then stop. Turn off the TV and put the magazines away. Now, consider why you want the renovation and what problem it will theoretically fix. Answer these questions and you\u2019ll have a much better idea of what needs to be done and what budget you can afford.<\/p>\n Of course, if you\u2019re like\u00a0Todd Talbot\u2014and use HGTV and home shows as inspiration, rather than as comparison\u2014then watch, take notes and go to it!<\/p>\n No. 3:\u00a0Answer questions honestly<\/strong><\/p>\n Are you handy? If so, you could cut some costs by doing the work yourself. But be honest with yourself: Do you have the time or the aptitude? If not, then you\u2019ll need to pay someone to do the work. That means taking all expenses into account\u2014not just labour and materials, but also permits, as well as additional overhead. Remember, the\u00a0people you hire\u00a0will<\/em>\u00a0make a profit. That\u2019s their job.\u00a0If that doesn\u2019t sit well with you, consider learning how to do the job yourself.<\/p>\n No. 4:\u00a0Always add more<\/strong><\/p>\n There are always extra costs. That\u2019s because home renovation planning takes a little bit of guess work. How do you know if you have lead pipes\u00a0or that your oven in a potential\u00a0fire hazard? To avoid blowing your household budget, due to unexpected reno costs, add a contingency fund. Most contractors suggest adding 10%\u00a0but larger projects may need a 20% contingency fund. Talk to your contractor for a better understanding of what this extra money could potentially cover.<\/p>\n Tip #4: Figure out the finances, first\u00a0\u00a0<\/strong><\/p>\n Before a hammer hits a nail you must first decide how you will pay for your home renovation project. Like all consumer spending, paying for a renovation is best done through savings. By saving up the money, you\u2019re more likely to stay on budget because you have more time to research costs and\u00a0plan the project.<\/p>\n Still, if you\u2019re seriously considering a renovation and don\u2019t have all the money saved up to cover the costs, here are two of the best ways to help fund this expenditure:<\/p>\n No. 1: Use a home equity line of credit (HELOC)<\/strong><\/p>\n This is a loan that\u2019s taken out against the equity you have built up \u00a0in your home. Under current regulations, a lender will only let you borrow up to 65% of your home\u2019s value. That means on a $500,000 home\u00a0you could borrow as much as $325,000. So, if you already have a $300,000 mortgage, you could qualify for a $25,000 HELOC.<\/p>\n The advantage of a HELOC over a standard loan is that it\u2019s backed by an asset. This collateral allows the lender to offer the loan at a lower interest rate, usually prime plus or minus a percentage. Also, a HELOC\u00a0allows you to borrow\u00a0up to the limit, repay and borrow back again, without penalty. Plus, when cash is tight, you only pay interest on the funds you use.<\/p>\n Just keep in mind that HELOCs come with additional fees to open and close (called discharging) the loan, fees that can run as high as $1,000.<\/p>\n No. 2: Use rebates<\/strong><\/p>\n If you\u2019re doing extensive renovations, consider making upgrades with energy efficiency in mind. Upgrades,\u00a0like insulating the basement or upgrading windows and the home\u2019s furnace, can help you\u00a0qualify for municipal, provincial and federal rebates that can quickly add up.<\/p>\n However, to get access to these rebates, you must first pay for and complete a\u00a0home-energy audit\u2014a test that will tell you how energy efficient your home is (or isn\u2019t) and then provide a list of upgrades. The audit is done in two parts (before and after) and can cost anywhere from $200 to $1,000, depending on your city, your home and the company you use. Once you\u2019ve completed and paid for these improvements, you can submit receipts and paperwork to various rebate programs. Depending on what you\u2019ve done, you could get as much as $10,000 back, just keep in mind it could take up to a year for the money to come in.<\/p>\n Under no circumstances should you rely upon a credit card<\/strong><\/p>\n If you\u2019re really in a pinch\u2014although you shouldn\u2019t be\u2014you could refinance your mortgage\u00a0to pay for the renovation. But\u00a0we\u00a0don\u2019t love this payment strategy\u00a0as you run the risk of adding costs to your renovation if interest rates rise.<\/p>\n Still, refinancing your home is certainly far more preferable than paying for a home\u00a0reno using a credit card. Charge cards often come with very high interest rates, meaning you pay an exorbitant premium just to do the renovation.<\/p>\n The final tip is, wait for it\u2026be patient. Putting your home reno project on hold gives you more\u00a0time to save up the money needed for this expensive endeavour. It also means not going into debt for an expenditure that may or may not give you a return on the dollar you spend. Finally, it avoids costly mistakes. That\u2019s because a hasty, under-budgeted renovation can\u00a0actually\u00a0devalue your home and add little or no value to\u00a0your home\u2019s fair market value. And nobody wants to pay for a big blunder. New year, new renovation budget. Now, before you go off on a rant about how foolish it is to renovate…<\/p>\n","protected":false},"author":2,"featured_media":336,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/posts\/332"}],"collection":[{"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/comments?post=332"}],"version-history":[{"count":0,"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/posts\/332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/media\/336"}],"wp:attachment":[{"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/media?parent=332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/categories?post=332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renovationsmart.ca\/wp-json\/wp\/v2\/tags?post=332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Tip #1:\u00a0Don\u2019t underestimate the cost of renovations<\/strong><\/h2>\n
Tip #2:\u00a0Seriously consider whether or not you are over-renovating<\/strong><\/h2>\n
![\"TopHomeRenos2016\"](\"http:\/\/www.moneysense.ca\/wp-content\/uploads\/2016\/12\/TopHomeRenos2016.jpg\")
<\/p>\nTip #3: Do the leg-work to set a\u00a0realistic home reno budget<\/strong><\/h2>\n
\n<\/a><\/p>\nTip #5:\u00a0Be patient<\/strong><\/h2>\n
\n![\"\"](\"https:\/\/renovationsmart.ca\/wp-content\/uploads\/2018\/01\/1000CARD-300x209.jpg\")
<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"