Tag Archives: home upgrades

Home renovations are costly, prone to errors

Jennifer Skingley and her partner—the former an erstwhile project manager and the latter an executive manager—are meticulous planners, so no detail was spared when they planned a home renovation. However, no amount of planning could have prepared them for the aggravations they would subsequently endure.

“We got the keys to our home in February 2018 and before we even took possession of it we had teed up people to do the work. We really researched and organized our renovation,” said Skingley. “There were several false starts trying to get people who were available to commit to doing the work. We interviewed a ton of contractors, got multiple estimates and did as much of the leg work ourselves as humanly possible without actually being construction experts. We tried to hand everything over on a silver platter, but for the work to actually start was like pulling teeth.”

And that was only the beginning, added Skingley.

The basement level needed external waterproofing, upgraded plumbing and a new bathroom was fitted in, while the kitchen and upstairs bathroom also received significant work.

However, because of last minute cancellations by contractors and a seeming deluge of errors, the home renovation took much longer than originally anticipated and cost over $80,000.

“Management was the issue,” said Skingley. “There were some blatant oversights and lossages with the team of people we picked, so we definitely ended up spending more money than we had allocated, even though we budgeted quite thoroughly from the outset, because we know when you tear things apart you find ugly surprises, but we there were things like having to tear floors out a second time because they forgot to get a permit. Silly little things like that took us way over and above. Even sourcing material was challenging.”

Unfortunately, Skingley and her partner’s nightmare renovation is extremely common, and given the exorbitant cost of the work, most homeowners can afford nary a thing to go wrong, says Casper Wong, co-founder and COO of Financeit, a consumer financing platform.

“When most Canadians renovate their homes, they aren’t offered flexible payment plans by their merchants, and while there are more traditional ways of paying, like with cash or using HELOCs [home equity lines of credit], not every Canadian can afford to make cash payments up front,” he said.

“Not everybody has access to HELOCs. Only three million Canadians have access to them, and on average Canadians owe $65,000, and 25% of Canadians with HELOCs just make interest-only payments.”

Financeit, a digital platform, works with thousands of contractors to homeowners make those large renovations in low-installation payments.

“We use our technology—and we own the entire stack, which allows us to manage credit, underwriting, servicing, and we work with multiple lenders and have a mobile app,” said Wong. “Not every Canadian can afford to make cash payments up front and usually when they do, they’re more reliant on credit, but credit cards have high interest.”

Source: Canadian Real Estate Magazine – Neil Sharma 12 Aug 2019

 

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20 Common Home ‘Renovations’ That Can Accidentally Lower A House’s Overall Value

When it’s time to sell their house, a homeowner will want to do everything they can to increase its market value. Of course, they’re aiming to turn the best possible profit, so that means they’ll need to ensure their home is in pristine condition when realtors bring around potential buyers.

You’d think a home with all the latest bells and whistles would be a surefire target for buyers, but the truth is there are plenty of upgrades that actually decrease a home’s value—and therefore make it far less marketable than comparable listings. You’ll never guess some of the ways putting money into your home can actually work against you!

1. Fancy light fixtures: While you might think adding dramatic touches to your home’s decor would make a listing more appealing, it can actually turn potential buyers away. If the light fixtures don’t match the style of the home, it can be a huge turn-off.

2. Wallpaper: Wallpaper is notoriously difficult to remove, and sometimes the choices in patterns can be a little too “in your face.” Instead of fancy designs, go with neutral paint instead. This allows the buyer to envision their own decorating—and it makes for an easier sale for you!

3. Textured walls: As with wallpaper, ornate textures on walls and ceilings can be a real pain to remove. Instead, check out textured wall decor; it’s far easier to remove, not to mention it’s usually cheaper.

4. Unique tiling: Many people have a tendency to lay down tiles that fit their own personal style, but chances are a potential buyer won’t have the same taste. Go with a traditional neutral floor and customize your space with a unique (and easy to remove) rug instead.

5. Carpeting: According to a study, 54 percent of homebuyers are willing to pay more for hardwood floors, which means homes with a lot of carpeting are less desirable. Carpets show their wear earlier, and colors and styles are usually based on personal preferences.

6. Bold paint: Bold and vibrant paint colors usually turn off potential buyers since the hues here are limited to the current owner’s preference. Fortunately, repainting rooms is an easy and affordable fix—and it’s a worthy investment.

7. High-end kitchens: In 2015, the national average for a kitchen remodel was a little less than $60,000, but the resale value was only priced at $38,000. To avoid spending so much on a project that will cost you in the end, only focus on the aspects of a kitchen that truly need sprucing up.

8. Luxury bathrooms: As awesome as a whirlpool tub is, it can be difficult to clean and sometimes hard to step into for some people… and that will deter buyers. A simpler walk-in shower appeals to more people looking to buy a home.

9. Home offices: Modern technology has allowed for more and more people to work from home, and they usually convert a bedroom into a personal work space. However, that can knock as much as 10 percent off a home’s value. If you have to use a bedroom, avoid bulky desks and shelving units so the room can easily be converted back.

10. Combining bedrooms: Combining two bedrooms that are next to each other to create a bigger room is perfectly fine for couples without children, but if they don’t plan on living there forever, the removal of one bedroom will knock down a home’s value.

11. Closet removal: Some people make the decision to turn large walk-in closets into other spaces, but this can actually hurt a home’s resale value. People will always need closets; they won’t always need a larger bedroom or bathroom.

12. Sunrooms: Sunrooms are actually some of the worst renovations to make to a home when it comes to return on investment! Homeowners need to think carefully about how much they’ll actually use the space before splurging on the expensive addition.

13. Built-in aquariums: These aquatic additions might make a home feel modern, but they require a massive amount of upkeep that many potential buyers aren’t willing to put in. Opt for a standard stand-alone fish tank instead.

14. High-end electronics: As cool as in-home movie theaters and other high-end electronic equipment may be, they usually throw off potential buyers who aren’t looking for these types of luxuries. Certain built-in technologies can also quickly become outdated.

15. Swimming pools: Many people might think swimming pools increase a home’s value, but it’s actually the opposite. Sure, if a buyer has children who will use it every day, that’s one thing—but many times, people see pools as money pits!

16. Hot tubs: Just like pools, hot tubs are always a gamble. The constant maintenance can throw off a buyer, and they’re also potential hazards for small children. Portable hot tubs are a much smarter investment if you truly want one.

17. Garage conversions: Some homeowners park in their driveways so they can renovate their garages into custom spaces like home gyms. However, many buyers actually want to park in their garages, not work on their lifting form.

18. Intricate landscaping: Unless the person buying your home is a landscaper who intends to maintain an intricate garden, costly outdoor decor will deter potential buyers. Keep gardens beautiful—but easy for upkeep.

19. Messy trees: No one likes to spend their afternoons raking up massive piles of leaves, but many types of trees will ensure that happens every year. If you plan on planting vegetation, keep in mind which types will create a huge workload come autumn.

20. DIY projects: Many people come up with unique ideas while they’re living in their home, and they put the effort in to make the renovations. However, not everyone is going to want something like an attic bedroom when they’re looking to buy! Keep that in mind.

The takeaway? Don’t over-personalize your living space! Keep it neutral and appeal to as many potential buyers as possible. If you’re putting you home on the market any time soon, don’t make these mistakes!

Share these tips with your friends below!

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Mike Holmes: You’ll get renovation stress, but here’s how to mitigate it

Living through a renovation puts a lot of stress on relationships. I’ve seen couples argue, and sometimes it’s so bad it can really test your relationship. The best thing you can do to avoid that is plan, plan, plan. The time you put into planning your renovation will determine its success. You must discuss everything with your partner, as well as your contractor. Talk about design choices, materials, expectations, what you’re willing to compromise on and your must-haves. Once you and your partner are on the same page, then do your homework.

Research and educate yourself on everything there is to know about the project — the trades you will need and when, all materials, the products you want, proper installation, warranties. Most people focus on the finishes — that’s the icing — but the bulk of your research should be on the right construction and materials that will support those finishes and make them last.

Some people will take all the right steps preparing for a renovation — they’ll discuss their budget, figure out if they need a construction loan, they’ll go over timelines, plus when they expect work to start and finish by. But once the reno starts, there are a lot of unexpected issues that can come up.

Before any work can start, everything must be cleared away from the area that will be renovated, plus the path leading to it. You must have a plan for storing all your furniture and appliances.

Where will you keep it all? Do you need movers? Do you need to rent a storage space? You should be discussing this with your contractor, too.

Also, where will you be living once construction starts? Some people think they can just stay home. I wouldn’t recommend it. Dust and noise will be a constant issue and mechanics, such as electricity, heating and water, typically get shut off — talk about an inconvenience! Plus, if the construction crew has to clean up at the end of every workday, because you’re living at home during construction, that adds extra labour costs.

Renovations aren’t a perfect science
and sometimes things happen

Let’s say you have a place to stay during construction. In most cases, it won’t be comfortable, which can put more stress on couples. When my son was renovating his house, he stayed in a Winnebago with his girlfriend. It was small, they didn’t have all their stuff and he was dragging in all kinds of dirt from the job site — it’s not an ideal situation.

And what do you do if construction goes longer than expected? Renovations aren’t a perfect science and sometimes things happen — like unexpected or emergency repairs that push your timeline, and budget, way beyond what you originally thought. Be prepared for the unexpected.

If you’re lucky enough to be staying at someone’s house, such as your in-laws, it can still be stressful. For one, it not only screws up your entire daily routine but also inconveniences other people. I remember one homeowner tearing up talking about staying at their in-laws during their renovation, and her daughter couldn’t play or dance for months because of boxes everywhere.

Even years after the job was done, the family was still recovering emotionally.

Changes to construction schedules and emergency repairs are another set of unexpected issues you could face. Anyone renovating their home should know that this can happen. You need a

Plan B in case it does. What things can you live without if you need to pull money for an unexpected repair? Are you willing to compromise on the finishes so you can stay within your budget, or will you go over it? If you do, what does that mean for you and your partner?

A successful renovation starts with plenty of planning, which takes time to do right — sometimes it can take months! But even all the planning in the world can’t prepare you for the unexpected. When that happens, communication is key, with your partner and your contractor.

Watch Mike Holmes and his son, Mike Jr., on Holmes and Holmes Thursdays at 10 p.m. on HGTV. For more information, visit makeitright.ca.

Source: Mike Holmes, Special to National Post | November 26, 2016 

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Renovation stress builds a range of emotions, from happiness to the desire to divorce: survey

As many have said, renovations can be a lot like giving birth: They’re painful, they make you want to scream, and cause you to ask yourself why you’re bearing the brunt of all the work. And yet, you love the result and often end up repeating the whole thing.

Houzz.com’s Remodeling & Relationships Survey of Canadian users, conducted online this past December and January, found a number of issues that caused pain, including the fact that:

  • 18% made a significant design decision without telling their partner
  • 8% snuck away to catch a break
  • 9% neglected to mention the price of something.

Those are the little white lies of the fixer-upper set, but in a number of cases, things got even worse:

  • 5% admitted to secretly throwing out something of their partner’s. That little bit of nastiness might happen when you refuse to compromise on your own tastes, as was the case with 17% of respondents.
  • While 63% said they did compromise, 6% threw up their hands and let their partner’s will prevail. That’s an unfortunate way to spend the following long years, staring at a design feature you abhor.

That failure to stand up for themselves might have been a result of poor communication (31%) throughout the project. This may have resulted in the stats that show

  • 33% could not agree on products or finishes specifically
  • or 30% on style and design generally
  • 32% of respondents felt they took on more work than their partner — already a source of tension in real life, let alone in reno life.

So, your partner buys something and doesn’t tell you (or lies about its price); says they really, really have to go to the office on Sunday; “accidentally” breaks that stained-glass window you wanted installed; and hates your choice of backsplash. It’s no wonder the survey showed

  • 40% found the time remodelling with their partner frustrating
  • 25% found it difficult,
  • 9% found it painful.

All those design decisions, looming deadlines and financial stress do take their toll. During the process, the worst experiences caused

  • 9% of respondents to think they needed couples counselling
  • 6% to ask “How did I end up with this person?” and
  • 3% to consider a breakup or divorce.

However, 63% thought they made a great couple on the job, and once the labour pains were over, 97% said it was all worth it. The results included:

  • 70% reported feeling more comfortable in their home thanks to the project
  • 66% felt happier
  • 60% felt more organized
  • 50% relax at home more often
  • 45% entertain more frequently
  • 36% do more cooking and dining at home
  • 28% spend more time together at home.

What did they learn from it? It goes back to communication and compromise.

  • 46% said compromise is the key to both the relationship and the remodel
  • 34% said it was agreeing on what you both want before you start the project
  • 30% said it was making a realistic budget (and of course sticking to it; note that secret purchase in the first point, above).

Source: National Post – Shari Kulha | February 5, 2016

 

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Solar Roof Tiles are the Future of Eco Homes and Friends to Home Budget

Solar roof tiles are new invention that can help a lot in saving energy and lowering the electricity bills. The solar energy is what can provide so much for your home heat without too many costs. There are many alternative energy solutions that are more and more attractive lately but solar energy is maybe something that is endless and easiest one.

Having a warm home and water is a big problem that needs a serious solution. With the great earth pollution and heating materials that do harm to the planet we are done. We should consider about other ways of bringing heat in our home instead of cutting trees and ruining the natural eco system.

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In the past this solar systems were so expensive and not everyone could afford it to buy and install it for their home. But, trough the years it became not so expensive and people can install it to their homes using it trough every season of the year. It is important to have a sunny day so the water of the system will be hotter. If not, there is always an alternative way to heat the water or the home interior.

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This solar photovoltaic tiles are very nice looking and are way better than the old panels on the roof of the houses. Those panels can go and retired because this is new innovative solution that works fabulous! The tiles are made of natural clay or slate slabs that have small solar panels inserted on the flat surface that should be exposed to the sun. Installing of those panels is very easy because of their shape and double function – tiles. They have so high energy yield although they are so small and flexible.

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There are also transparent solar tiles with highest aesthetical look. Those tiles are also very resistant to all weather conditions although are made of Plexiglas or PMMA. This material is even way better because it allows the sun come in trough the roof. They allow 90% of the natural light to come in your home.

Source: http://www.ArchitectureAdmirers.com

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Consumers find they need help making the best choice for their home. To facilitate this process, we’ve come up with 10 consumer-friendly tips for selecting the ideal fireplace.

  • Decide on the fireplace’s main purpose: Is it heat-efficiency, aesthetics or a combination of both? By communicating this information to the sales person, your options will narrow and your selection process will become much easier.
  • Avoid choosing a fireplace with the intention of heating more than one room. Trying to save on heating costs in this way will result in an overheated main room, forcing you to keep the gas fireplace off much of the time.
  • If you are looking for heating efficiency, consider a thermostat-controlled, self-modulated fireplace. This way, the fireplace will automatically turn up and down while regulating the room to the temperature you desire.
  • Research the trim options to determine which would best suit your décor. Once you have decided on a specific fireplace insert, ask the sales person to review the trim designs that are available. Often the brochure will feature options not seen in the showroom.
  • View the fireplace while the flames are inactive—not just when they are turned on. Since the fireplace won’t be running 24 hours a day all year long, it’s important that you are sure you like how the unit looks when it’s not fired up.
  • Avoid choosing a heating insert that relies on a fan to push the hot air out into the room. The best fireplaces are efficient without a fan. Using one does help with circulation but will only marginally improve the heat output and there will always be some noise. If you do have a fan, make sure you have a separate control for it so you can turn it up, down or off, as needed.
  • When choosing a decorative log set, choose one that easily fits into the fireplace area and leaves some breathing room. Having ample space around the log set looks better and ensures that the valve will not overheat.
  • Determine how you want to operate your gas fireplace. There are a number of options available, including wall switches, remote controls and thermostats. You can also operate many fireplaces manually.
  • If a gas fireplace is not an option, consider an electric fireplace. Electric ones are now available in a variety of sizes and styles with lots of different trim options. They require no venting, so you can install them anywhere in the home.
  • Find a fireplace retailer who will arrange to have a licensed and insured HVAC contractor take care of the installation. How the fireplace is installed can impact its overall efficiency operation and durability.

Source: Reader’s Digest – By Steve Maxwell

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Toronto Homeowners Get $8,500 Richer Every Month, While Condo Owners Get The Shaft

Bicycle Bob/Flickr

Forget working. The real way to accumulate wealth is to buy a single-family house in Toronto, and wait.

OK, that’s bad advice. But given what’s been going in Toronto’s housing market, you can be forgiven for coming to a conclusion like that.

If you own an average single-family home in Toronto, your net worth has been growing by about $8,500 a month over the past year.

According to the latest numbers from the Toronto Real Estate Board, a single-family home in the 416 now averages $1,053,871, up 10.7 per cent from a year ago. Break down that increase by month, and you get around $8,500.

But in yet another sign of the growing gap between condos and houses, Toronto’s condo dwellers aren’t seeing anywhere near that kind of wealth growth.

The average Toronto condo is now worth $418,603, 5.6 per cent more than a year ago. That works out to a wealth gain of $1,925 a month. Condo owners are growing their wealth at less than one-quarter the pace of homeowners. In the 905 region around Toronto, condo owners are adding only $637 per month in wealth.

Condos just aren’t seeing the same rate of appreciation. While standalone homes in Toronto have grown by 34.8 per cent in price over the past three years, condo prices have gone up only 10.9 per cent in that time.

Say hello to the new face of wealth inequality in Toronto, where owning a back yard is a pass to riches, and owning a balcony is a pass to condo fees.

But so what, you may ask. This value is tied up in the home, it’s not like people can live off it.

Well, yes and no. A growing number of Canadians are taking out home equity lines of credit against the value of their house. The higher the house value, the more they can borrow, and some experts are getting worried Canadians have borrowed too much this way.

And there is also the wealth effect: People change their behaviour when they feel richer, generally buying more than they otherwise would.

This effect seems to be strong in Canada right now. It certainly helps to explain why consumer spending held up in Canada this year despite all the talk of recession, and why imports to Canada are strong even while exports are flailing.

So the money may be stuck in your home, but its effects on the economy are real.

Here’s a breakdown of how much wealth Toronto-area residents are accumulating per month off their real estate.

Single-family homes in Toronto (416):
$8,491 in wealth per month (avg. price $1,053,871, up 10.7 per cent in a year)

Single-family homes in GTA (905):
$6,404 in wealth per month (avg. price $732,852, up 11.6 per cent)

Condos in Toronto (416):
$1,925 in wealth per month (avg. price $418,603, up 5.6 per cent)

Condos in the GTA (905):
$637 in wealth per month (avg. price $307,295, up 2.2 per cent)

Source:  |  By  Posted: 10/06/2015 12:29 pm EDT

To get more information on home ownership and mortgage qualification visit: www.RayMcMillan.com

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