Even if you're not thinking about selling your home any time soon, it's important to keep in mind how certain home renovations can increase the value of your property and provide the greatest return on investment.
There are a number of financial solutions available to help you reach your home renovation goals, including the CIBC Home Power Plan®. This secured solution gives you a lower interest rate than unsecured options and allows you to borrow a higher amount. You'll have access to an ongoing source of funds up to your credit limit, which can help if you need extra funds as your renovation progresses.
Five home renovations that truly pay off
The Appraisal Institute of Canada (AIC) offers insight into which home renovations offer the best return on investment. Most experts agree that the two rooms in your home where you can recoup most of your investment are the kitchen and the bathroom. Consider the following five upgrades to your home that will likely pay off in the long run, according to AIC.
Kitchen: There's no need to gut the kitchen entirely when you're looking to increase your home's value. Upgrades such as granite countertops, stainless steel appliances, new fixtures, lighting or other minor aesthetic changes can go a long way. According to AIC's calculations, kitchen facelifts typically pay back about 75 to 100 percent of their cost, making them the most popular and beneficial home renovation investments.
Washrooms: Similar to the kitchen, the washrooms in your home offer a nearly 75 to 100 percent return on investment. Even if you don't want to replace the tub and shower in their entirety, a new state-of-the-art showerhead, faucets, and other small renovations really make a difference in the long run.
Floors: AIC confirms that you can count on a payback of approximately 50 to 75 percent when you replace old or outdated flooring. Replacing aging hardwood and tile or installing new carpet or laminate can give your home a polished feel.
Closets: While it's hard to put an estimate on the rate of return a well-designed closet will incur, potential buyers consider closet space when taking a walk-through of a potential home. A well-designed, organized closet with ample storage space and other features is a great selling point. A small investment in new closet storage, shelving, hooks and hangers can go a long way when trying to get the best return on your investment.
Energy upgrades: Whether you're thinking about new energy-efficient windows, a new furnace, or solar panels on your roof, energy upgrades are a hot trend in home building and renovations, and typically bring with them at least a 50 to 75 percent return upon resale.
Make your home renovations possible with CIBC lending
The CIBC Home Power Plan® is a great option when looking to finance your home renovations or remodeling. Apply by calling a CIBC advisor at 1-866-525-8622.