HGTV's Scott McGillivray
offers advice on getting the biggest bang for your renovation buck
as new survey finds that homeowners plan to cut their annual reno
budgets
TORONTO, May 8, 2015 /CNW/ - A new CIBC (TSX: CM)
(NYSE: CM) poll conducted by Nielsen finds that while Canadian
homeowners remain focused on home renovations, they have cut their
2015 budgets. The poll shows Canadians plan to spend an average of
about $17,000 this year - down from
almost $20,000 in 2014.
While projected budgets are down, the number of homeowners
planning to renovate has remained high at 42 per cent this
year in line with 40 per cent last year.
Highlights of the poll include:
- $17,142 is the average
amount that Canadian homeowners who plan to renovate say they will
spend on renovations in 2015 - down by 13 per cent from
$19,754 in 2014
-
- "Big ticket" renovation plans edged lower - 16 per cent
of homeowners say they will spend more than $25,000 on renovations, down from 18 per
cent in 2014
- Basic home maintenance (64 per cent) such as painting,
flooring, general repairs and replacing appliances is the top
planned renovation, followed by outdoor landscaping (32 per
cent), upgrading bathrooms (29 per cent) and kitchens
(28 per cent)
- The harsh winter took its toll on the homes of Canadians -
13 per cent of Canadians are planning home repairs this year
to fix weather-related damage
"While Canadians continue to invest in renovations, they are
taking a very practical approach in 2015 focused on lower-cost
projects," says Barry Gollom, Vice
President, Mortgages and Lending at CIBC. "Prioritizing where to
spend your home improvement dollars is smart, but before you begin,
you should make sure that you have a clear plan in place and access
to the funds that you need to get the job done."
Mr. Gollom also says that staying on top of home maintenance and
repairs is a necessary part of homeownership that can safeguard
your investment and help save money down the road. "Homeowners
should budget for general upkeep. Putting money into fixing a leaky
roof today is far cheaper than the cost of a new roof or dealing
with expensive water damage in the future."
HGTV's Scott McGillivray on
maximizing your return on your renovation investment
Many homeowners are choosing to renovate, instead of move, to
get the home they want, says Scott
McGillivray, a real estate investor and host of HGTV's
Income Property.
"I find that more and more people right across Canada are looking for creative solutions to
add more space so that they don't have to move," Mr. McGillivray
says.
But homeowners should carefully consider the return on
investment before they begin any renovation, he says. While it
depends on your personal situation, Mr. McGillivray says your money
may be better spent with certain renovations over others.
While swimming pools and skylights might add a "wow factor" to
your home, they usually won't drive up the selling price the way a
new kitchen or bathroom would, says Mr. McGillivray, warning that
you shouldn't over-improve for the neighbourhood.
"You don't want to build a $150,000 custom kitchen in a $200,000 home. You have to be realistic about
your needs, and where money is best spent."
Here are a few examples:
Getting the biggest bang for your renovation
buck
- Bathrooms: Modernizing a bathroom - adding new fixtures,
a low-flow toilet, space-saving cabinets, new tile or adding a
master bedroom ensuite can all add value, often at a reasonable
cost.
- Kitchens: Upgrading cabinetry, countertops or
appliances, or enlarging a small or poorly laid out kitchen can add
a premium to a home's value.
- Finished basements: A finished basement can add space in
your home by one-third.
- Flooring: Ripping out old carpets or refinishing a
hardwood floor can be a selling point.
CIBC Home Advice online
To help make home ownership easier and more manageable for
clients, CIBC offers home ownership tips and advice from Mr.
McGillivray at the CIBC Home Advice Centre. CIBC also recently
launched a series of YouTube videos in which Mr. McGillivray
provides short snippets of advice on budgeting, finding the right
home and how to preserve and grow the value of your home.
Smart Budgeting - CIBC Home Advice: Episode 1
On The Hunt - CIBC Home Advice: Episode 2
Add Some Value - CIBC Home Advice: Episode 3
Renos 101 - CIBC Home Advice: Episode 4
Do You DIY? - CIBC Home Advice: Episode 5
KEY POLL FINDINGS
Percentage of Canadians who say they plan to invest in
renovations in their home in the next 12 months:
|
2015 |
2014 |
National |
42% |
40% |
Average dollar amount that Canadian homeowners say they are
planning to spend on renovations in the next year:
|
2015 |
2014 |
National |
$17,142 |
$19,754 |
Amount Canadian homeowners plan to spend on renovations by
dollar range:
|
2015 |
2014 |
Nothing |
4% |
- |
$1 to $4,999 |
19% |
14% |
$5,000 to $9,999 |
23% |
20% |
$10,000 to $14,999 |
16% |
15% |
$15,000 to $24,999 |
14% |
18% |
$25,000 or more |
16% |
18% |
Top planned home renovations among Canadian homeowners planning
to renovate (respondents could choose more than one option if
applicable):
Basic home maintenance (painting, flooring,
general repairs, replacing appliances) |
64% |
Landscaping (including outdoor deck) |
32% |
Bathroom renovations |
29% |
Kitchen renovations |
28% |
Replacing windows or doors |
20% |
Basement |
16% |
Home repairs due to weather damage this past
year |
13% |
Each week, Nielsen Consumer Insights interviews just over 1000
Canadians through teleVox, the company's national telephone omnibus
survey. These data were gathered in a sample of 1,020 Canadians
between March 5-8, 2015. A sample
of this size has a margin of error of +/-3.1%, 19 times out of
20. Some sample sizes for regional and age groups under Key
Findings are smaller than typically reported and provided only as
reference data.
About CIBC
CIBC is a leading Canadian-based global financial institution
with 11 million personal banking and business clients. Through our
three major business units - Retail and Business Banking, Wealth
Management and Wholesale Banking - CIBC offers a full range of
products and services through its comprehensive electronic banking
network, branches and offices across Canada with offices in the United States and around the world. You
can find other news releases and information about CIBC on our
corporate website at www.cibc.com/ca/media-centre/.
SOURCE CIBC