Renovate for Profit
& Boost
Your Home's Value

Renovate for Profit

The most strategic move to improve the value of your property is to renovate your home

By renovating your home, you win twice - once when you enjoy the improvements, and once when you calculate your net worth.

Renovating Your Home is a Strategic Move

Getting ahead in real estate is not just about buying properties. If you are happy where you are, home renovation can be a sound financial strategy. When you renovate your own home, you enjoy the benefits of a better home and its future value when and if you sell the home.

When it comes to resale value, not all renovations are created equal. Let's look at an example. Suppose you fancy a hot tub on your back deck and decide to invest $10,000 to get one. Will this investment add $10,000 to the value of your home? Likely not.

The truth is, not everybody wants a hot tub. In fact, somebody bidding on your home might not want to bother with the maintenance and may be inclined to get rid of it. Their bid, therefore, will not take your investment into account. It might even be seen as a negative.

The lesson here is that when you're prioritizing your home improvement projects, make sure you consider renovations that add the most value to your home.

Renovation for profit guidelines:

Chose improvements that are most popular with prospective buyers
Kitchens and bathrooms are at the top of the hit list according to statistics gathered by the Appraisal Institute of Canada. The institute also has a useful online guide which shows you the return on any renovation you are considering.
Capital Direct Tip
Keep your home in top shape
Homes that are not looked after depreciate rapidly in value. A leaky roof, for example, can cause damage to your hardwood floors. Siding that is in bad shape can lead to pests getting into your attic and causing further damage.
Capital Direct Tip
When the time comes to sell, put your maintenance operation into high gear
Painting the exterior, repairing the roof and redoing the gutters will ensure that buyers get a positive impression.
Capital Direct Tip
Rental suites are a big plus
Renovations that generate rental income are big plusses for potential buyers.
Capital Direct Tip
Avoid amateur renovation jobs
The "do it yourself" (DIY) renovation market is extremely popular in Canada right now, but if you put an addition on yourself, and the roof leaks, a prospective buyer won't be impressed. If you can't do a professional job yourself, hire somebody who can.
Capital Direct Tip
Invest in energy efficiency
With rising energy prices, you can be sure that the payoff from investments in insulation will give a return that keeps rising. If you improve your energy efficiency, you also may be able to qualify for a grant through the Government of Canada Office of Energy Efficiency. Use your eco mortgage for renovations that are eco-friendly.

For more renovation guidelines visit the Canada Mortgage and Housing Corporation or Canadian Homebuilders' Association.
Capital Direct Tip
Financing your Home Renovation

One of the preferred ways to finance a renovation is through a home equity loan. This allows you to use the equity in your home to build more equity, a sound wealth-building strategy. Capital Direct has helped thousands of Canadians pursue this approach.

Fill Out Our 4-Minute Flexi Line™ Application

With our Capital Direct® Flexi Line™ you can take what you need when you need it and pay it down when it works for you.

Pay us back at your own pace with minimum payment requirements. Pay some, borrow some more. It's a perfect way to deal with unexpected expenses or plan for your future.

Apply Now