(NC) Deciding to renovate can be a truly exciting time in which the possibilities seem endless. But it’s also easy to get overwhelmed with decisions. When that happens, it can be tempting to take shortcuts or make snap decisions. To avoid spending money on choices you’ll regret, here are some questions to ask yourself as you consider your next home update.
How and when will you use the space?
Think carefully about why you want to renovate in the first place and be realistic about how much use the room will get. How often will you use the home gym, or how much use will the kids’ playroom get?
How are you going to pay for this?
According to a recent report from insurance provider Aviva Canada, 14 percent of those who renovated during the pandemic did it on impulse, with eight percent percent saying they spent too much, and five percent stating they have regrets. No one should have to regret their reno, but spending can easily get out of hand. Be sure to set out a budget beforehand, consider expenses and comparison shop. Having a plan and a solid idea of what you can afford is always best, even if you deviate from it during the project.
“When considering making renovations to your home, it’s always a good idea to ensure you have a plan in place,” says Phil Gibson, EVP and Managing Director of Personal Insurance at Aviva Canada. “Canadians looking to make major changes to their home should know that renovations like finishing a basement, removing structural supports, or building an addition may impact their insurance coverage as they can change the home’s rebuild value. Your insurance representative can help ensure that your home is covered for its true value, giving you peace of mind should the unexpected happen.”
Does return on investment really matter to you? Some updates are better than others for resale value and securing more equity in your home. While it depends on where you live, updating the kitchen is usually a safer bet than remodeling the bathroom since buyers want a kitchen they can use right away. On the flip side, a pool might be a fun addition but don’t count on making back your investment if you go for it. While you shouldn’t base your reno plans based on ROI alone, it’s worth considering so you go into the project with a realistic mindset.
