Renovations improve value of home The Ottawa Sun Saturday, June 14, 2014 Byline: LINDA LEATHERDALE As the great debate rages on — will Canada’s hot real estate market crash or can this bullish sector keep hitting new heights — one thing is certain, Canadians love to renovate their homes. Since 2003, renovation spending in Canada has jumped 7% a year, with 2015 expected to generate $45 billion in total renovation activity more than double a decade ago. That’s despite the squeeze of record household debt levels and a possible cooling of the market next year with higher interest rates, according to the experts at TD Economics. It’s called the Wealth Effect. For every $1 in home price appreciation, consumers go out and spend an additional nickel — some in renovations. Also, Canada Mortgage and Housing Corp. (CMHC) estimates that following a home purchase, households tend to spend $21,000 on renovations and furniture. No doubt, this renovation love affair has kept interior designers very busy, and one is Michelle Major, owner of Foxglove Designs Inc., who recently opened a new studio at 15140 Yonge Street in Aurora, Ontario. Major knows a well planned renovation can add equity to a home, and no project need to turn into a money pit, if budgets are adhered to and the project stays on track. So when a client approached her about a design modification at their newly-purchased older Victorian home on the shores of Lake Couchiching in Orillia, she was there to guide them through the process and help their design dream come true. DREAM HOME “This was a professional couple and this was their dream home. They plan on retiring in this beautiful home,” she said. The problem was the home had not been renovated in years, and it showed. The kitchen, for example, was stuck in the past with old laminate countertops and outdated pine cabinets. The couple wanted to tear out an interior wall between the kitchen and dining room so they could enjoy the spectacular water views. That also meant opening up the sun-room, which had to be totally gutted and rebuilt. Major brought in structural engineer Dan Morris, owner of DP Morris Construction in Oro Station. “This couple wanted their dream kitchen. They wanted it to be large and beautiful, with a touch of glam. They also wanted it to be open and casual for entertaining where guests could gather while they cooked,” she said. She worked with her clients to ensure their wishes. An island with a countertop stove was a must. A second island with a secondary sink would create good flow for entertaining. An antique chandelier would add glam. KITCHEN COUNTERS And breathtaking, maintenance-free countertops would be the crowning glory. Her client picked Cambria natural quartz countertops, and one of the latest designs from the Jewel Collection, Parys, with its dazzling blue and shimmering gray palette. “My client fell in love with Parys, which adds a bit of glitz and works so well with the dark blue-grey on the island cabinets,” said Major. MORE RENOVATIONS Her clients are now dreaming of adding a garage with a loft and a new bathroom. They were thrilled when their real estate agent visited and informed them they recouped their cost of the renovation by adding equity to their home. BANG FOR YOUR BUCK According to the Appraisal Institute of Canada, kitchen and bathrooms offer the biggest bang for your renovation buck, providing a return on investment of 75% to 100%. Other safe bets include adding a garage, a basement renovation, fireplace installations, window and door replacements and entertaining room additions — all which return about 50% to 75%. No matter what renovation is planned, Major encourages clients to shoot for their dream by selecting 10 pictures of what they want. Then get quotes, select material and work within a budget. “If we have to scale back it doesn’t mean you still will not get a beautiful renovation. We are there to help through the process and a key element is the planning stage.” The bottom line, according to Major, is: “If you can dream it, we can design it.” – Linda Leatherdale, VP of Cambria Canada, is former Money Editor of the Toronto Sun, a financial commentator at linda. leatherdale and a regular expert on The Roy Green Show on the Corus Radio network
Posted on: Mon, 16 Jun 2014 13:48:44 +0000
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