How your space functions and feels matters now more than ever, especially if your new norm is an everything-at-home lifestyle; work, play and living. And, by this point in the pandemic, if your space isn’t optimal, you’ve probably exhausted all the furniture- and room-rearranging options available to you. So naturally, if you own, home improvements aimed at increasing the livability and workability of your space are probably on your mind.
Whether it’s a long-planned or pandemic-induced renovation, here’s how to do the math on it.
Begin with the final market value in mind
Before you start breaking up the concrete in your basement in an effort to level out the floor, you’ll want to compare listings and sale prices of properties that are, and are not, upgraded (for condos and townhouses, too). Some of this information can be found online, and your realtor, if you have one, can fill in the blanks of what else is happening in your neighbourhood in terms of prices. No one has a crystal ball for the real-estate market, especially during COVID-19 times, but by gathering up as much pricing data as you can, you’ll better determine guardrails for your renovation budget.
The high-level math on renovations is this; you need to get out the money that you invested in the reno when you sell, and then some, otherwise it’s not worth your while. Also, you need to be able to afford to pay for the improvements.
For example, if you invest $100,000 in an upgraded kitchen, bathroom and basement, but comparable listings show that you’re only going to fetch $80,000 more for your property (from current value), you’re effectively losing $20,000 plus the value of your efforts. On the flip side, if you’re likely to fetch $150,000 more for your property, your costs are