Budget Tips and Ideas for Kitchen and Bathroom Renovations
“You could potentially save yourself thousands of dollars by tackling your project in the off-season.”
If you are looking for ideas for your kitchen or bathroom, perhaps we can provide some motivation or inspiration to aide in your decision-making process. There are typically 3 areas that will not only update your home but also add value to your property; kitchen, bathroom and master bedroom. Depending on your budget, one other item to consider is ‘when’ you do your renovation. Here in Alberta, the renovation season usually kicks in around May and continues until September, but did you know you could potentially save yourself thousands of dollars by tackling your project in the off-season? Not only are contractors more willing to make price concessions, but many retailers also offer larger discounts to appliances, fixtures, paint, wallpaper, furniture and so on. According to the 2019 CIBC Home Renovations Poll, 49% of Canadians plan to renovate their homes this year, budgeting $10,211 on average. Among those who completed recent renovations, 39% went over budget – which is why it is critical to do your due diligence in partnering with the right contractor.
Kitchen Renovation Tips & Ideas:
A kitchen or bathroom renovation can and will most likely boost the value of your home by between 75 to 100% of what you spent on the renovation itself. This means that if you own a $500,000 home and renovate the kitchen for $25,000, then your house would be worth somewhere between $518,750 and $525,000 – essentially recouping most of your kitchen renovation costs which is why many consider it an investment as it has a high return.
The kitchen may seem like an obvious place to invest your renovation budget as it immediately adds value to your home. The question though is should there be a limit? Is there a fine line between adding value or over-improving?
Depending on the real estate market and area, adding unnecessary, over-the-top finishes or even creating unique highly personalized features may not provide you the best financial return for your spend. For example, spending $65,000 to upgrade your basement when houses in your neighborhood sell for $200,000 isn’t exactly the best financial decision and you will likely never get your money back for this upgrade.
So what is the right formula? According to the Appraisal Institute of Canada, “the average amount homeowners should spend on a kitchen renovation is up to 10 to 15% of the overall value of their home. But if you’re renovating the kitchen for your “forever home” and plan on staying for more than five years, you can safely stretch the budget to 15 to 25%.”
With all this said - where should you spend your money with a kitchen renovation? Investing your money on new appliances, countertops, cabinetry, faucets, paint, back-splash and a contractor should be your priority in kitchen renovation.
Bathroom Renovation Tips & Ideas:
Unlike the kitchen, your bathroom renovation will and should have different math applied. According to experts, your bathroom renovation budget should be around 5% of the value of your home ( or less ), unless this is your forever home.
The average bathroom renovation should include updates to the bathtub, shower system, toilet, vanity, sinks, faucets, tiles, flooring, counter tops, light fixtures, and windows, as well as costs for a contractor to complete the work. While those who are handy may be able to tackle some of the labor themselves, items that require plumbing or electrical work should be completed by the professionals. More major renovations that require knocking down walls and/or putting up new ones to change the layout will most likely require a permit, so do be sure to consult with your city or town bi-law officials. .
Master Bedroom Ideas:
A fresh coat of paint does a world of good in offering an easy and inexpensive way to update your master bedroom - but what else will have impact and provide return on your investment? Adding more square footage to your home with a larger master bedroom can be an incredibly expensive project if you are not careful, however, understand that you could possibly recoup a good chunk your investment, typically coming in around 65%, but does range from 50%-83% of total renovation costs.
TIPS ON HOW TO PREPARE FOR A RENOVATION:
There is a general rule for homeowners. Simply put, try to budget 1% of a home’s value each year for ongoing maintenance and home improvement. So if you own a $500,000 home then it is recommended to set aside $5,000 each year. This way, you will have the money readily available especially if you need to renovate unexpectedly.
As you do your research, you will realize that you will have many options to consider with any home improvement project. Try to stay with upgrades that add value to your home as home improvements don’t pay off like they did back in 2004-2005, when the housing market peaked.
If you plan to renovate try to concentrate your efforts on smaller projects which make your home more appealing to budget-minded buyers if you are going to sell in the next 5 years. Other things to consider are energy efficient upgrades and smaller projects that add character and comfort to your home.
When it comes to your project, whether it be a kitchen remodel, bathroom renovation, full basement development, garage development or even lighting and fixture upgrades we have you covered. Our team of certified journeyman electricians are looking forward to hearing from you to discuss your renovation, remodel and upgrade electrical needs. Contact Wireworks Electrical Services Ltd. today at 780-289-1660 or by email at ray@wireworksltd.com to discuss your project! We are amped to earn your business!
Wireworks Electrical Services Ltd. looks forward to partnering with you to complete your next project. We service Sherwood Park, Fort Saskatchewan, St. Albert, Edmonton and surrounding areas. With over 20 years in the electrical trade our team is amped to earn your business!
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