The odds are good that renovating will increase the value and marketability of your home in the long run.

 

But some renovations have a better payback than others, and the amount will depend on your specific location. For example, a new wood-burning fireplace sells much better in colder climates. So which home renovations are worth your time and money?

 

1. Siding ($4–$21 per square foot) – Recoup: 87%

 

The return on siding is high because of its relative cost to the value of your home and its ability to make your home look new again. Another attractive feature is that there are sidings available that are zero maintenance. So a potential buyer looking at a long-term purchase benefits from the reduced cost of future upkeep.

 

The least expensive options are vinyl or aluminum siding, at $4-$5. The newer vinyl is fade-resistant, available in many colours and virtually maintenance-free. Aluminum is durable but will require painting if it is scratched.

 

Other more expensive options include cedar ($9-$12), stucco ($9-$11) and brick veneer ($9-$21).

2. Windows ($25-$60 per square foot) – Recoup: 85%

 

In addition to sprucing up your home’s exterior, new windows can substantially improve the energy efficiency. This is a big selling point, as the cost of heating and air conditioning has continued to soar.

 

The total cost will depend on the brand and type of window you select, and the difficulty of the installation. Storm windows and those with thermal glass will be at the middle of the cost range. Specialty windows such as double-hung and bay windows will be at the top of the range.

 

Quality windows will increase the comfort of your home and help prevent moisture and mould from building up inside. They will also do a better job of restricting pollen and bugs, and reducing outside noise levels.

 

3. Bathroom remodel ($5,000+) – Recoup: 70-85%

 

An updated bathroom is another great selling feature. While a coat of fresh paint will do wonders for the interior of a house, there’s no way to cover up old sinks, bathtubs and fixtures. Today’s buyer is looking for molded sinks, marble vanities, ceramic tile, whirlpool baths, unique lighting and modern fixtures.

 

The cost can vary widely, depending on the extent of the remodel, and luxury fixtures can run into thousands of dollars. Should you decide to remodel specific parts of your bathroom, you can expect to spend about $4,000 for a whirlpool bath and around $3,000 for a ceramic tile tub enclosure or shower stall.

 

4. Kitchen remodel ($7,500+) – Recoup: 75-80%

 

If you’re on a limited budget, the choice between remodelling a bathroom or a kitchen should probably be based on which one will give you the most pleasure and satisfaction. You will recoup roughly the same percentage of your cost on either one.

 

The total cost will be a function of the types of materials used, the extent of the remodel and whether or not you replace some or all of the appliances. These are rough estimates expressed in dollars per linear foot: $50-100 for new cabinets, $40 for laminate countertops and $75 for marble countertops.

 

5. Master bedroom suite ($115 – $200 per square foot) – Recoup: 75%

 

Older homes benefit the most from this addition, whether you are remodelling an existing bedroom or adding a new one. In many cases, a master bathroom will be added at the same time because of the cost efficiencies that result. The cost of plumbing and fixtures would be added to the overall cost.

 

The bottom line

 

Remodelling can include everything from adding a new room to simply updating the bathroom faucets. Before pursuing any of these options, you should evaluate the payoff of the work you plan to have done.

 

Other home improvements that don’t pay off as well as those above include swimming pools and professional landscaping. While many people will add these for their personal enjoyment, it’s unlikely that a majority of the cost will ever be recovered.

 

Before undertaking major remodelling projects, make sure you have taken care of the basic maintenance on your home. If you are selling your home, an updated bathroom won’t do you much good if your carpets are old and worn out, or if your exterior paint is peeling. Fresh paint and new carpeting or flooring will go a long way in preserving or increasing your home’s value at a relatively small cost.

  

 

  

Planning on  updating the  look of your current Toronto condo?  StagingWorks provides interior styling and decorating services.     The Toronto Star article below outlines how condo owners can claim the home renovation tax credit.

  

Toronto Star Article – Adrienne Brown

How condo owners can claim the Home Renovation Tax Credit

If the term “Home Renovation Tax Credit” brings to mind images of detached houses in the suburbs and not units in sky-high buildings, you’re not alone. Many condo owners are paying little attention to the credit when they could be reaping the benefits.

In fact, there are many opportunities for condo owners to claim the credit, including some outside of their own units.

Condo owners can claim a portion of improvements made to their building between Jan. 27, 2009 and Feb. 1, 2010, as long as they were at least partially responsible for paying for the upgrades.

Here’s how it works:

Assuming each condo owner pays a monthly fee to a condo corporation, repairs or renovations completed and paid for with that money should count toward the HRTC. The condo corporation is simply paying for these goods and services on behalf of all of the unit owners.

Condo corporations are unable to claim the credit because it is available only to individuals, so it’s up to each person to claim his or her portion.

Therefore, on their 2009 taxes, condo owners can claim the credit for renovations to their own unit – similar to what would be done in a detached home, for example – as well as their share of any renovations to common areas paid for by the condo corporation.

This could include anything from new windows installed in your building to a redesigned lobby area or improved landscaping.

Add these shared costs with renovations you may have done to your individual unit (bathroom or kitchen upgrades, new fixtures, painting) and you could significantly increase your credit.

Canada Revenue Agency guidelines for condo owners indicate that improvements made to common areas will qualify if:

– You own your unit. Renters are out of luck, even if they pay similar monthly fees.

– “The expenses would be eligible expenses if the common areas were treated as an eligible dwelling” – if new furniture wouldn’t count in a detached home, it won’t count in a condo either.

– Your condo corporation has notified you of your share of the expenses.

As a reminder, the tax credit applies to renovation costs over $1,000 and under $10,000, so if you spent a few hundred dollars on your own unit and the condo corporation spent a few hundred more on your behalf, that may be the difference between getting a return or not.

What you’ll need to make the claim:

Since you’re not dealing directly with stores or contractors and won’t receive original receipts or invoices, in order to claim your portion of building renovations you need documentation from your condo corporation. This can be in the form of a letter and must be signed.

Most condo corporations have a set of guidelines that help them determine the allocation of expenses for common areas. It is this documentation that will guide them in establishing each condo owner’s contributions to renovations and therefore how much people can claim.

According to Canada Revenue Agency, the documentation “must clearly identify the type and quantity of goods purchased or services provided” and also include the following:

– The cost of the renovations

– Your portion of the expenses (exactly how much you are considered to have contributed)

– Contact information for the vendor or contractor (including GST/HST number, if applicable)

– A description of the work in question

– The date or dates the work was completed.

If you do not receive documentation for improvements to your building, it is worth asking about. It could mean a few more dollars in your pocket!