Spring time is now among us and it’s a time of “new life”.  New life in different areas of life … maybe you are thinking of refreshing up your home with some new modern renovation or maybe you are an investor looking at the red-hot spring market in Toronto and Vancouver!  (My prediction this year, given the level of the inventory: we’ll be seeing higher prices of appreciation and a very strong seller’s market.  It’ll be another record breaking year!)

Being a real estate investor at heart, I look at a lot of things in life with a different lens.  For example, my house to me is a liability and not an asset.  While to many, it would be considered an investment in hope that it’ll go up in value in time.  However, my definition of an asset is something that will put money in my pocket regardless if I work or not.  I learned this concept from the famous author who wrote “Rich Dad Poor Dad” at a very young age and it’s something that I truly believe in.  And my house surely does not put money in my pocket on its own … so it is considered a liability in my point of view.  On the other hand, if I want to convert my house into an investment, that will put money not necessarily in my pockets but for me to use to purchase even more real estate investments, it is very simple to do (in theory)!  How can this be done?  One word but two step process: RENOVATION, then REFINANCE!  Like I mentioned, it’s quite simple in theory, but the process can become quite a handful!  Especially when it is your first time doing any type of renovation.  So, my advice is, if you are not handy, hire someone who is and that will save yourself time, effort, and money!  Secondly, know which areas of your house will need renovating to maximize your house’s value.  I always put my money where it’ll give me the biggest bang for my bucks.

Which areas are worth renovating?  In many cases, the kitchen and master en-suite are the two major areas where you want to spend the most of your money because these areas give you the greatest return on your renovating budget and if you do plan to sell, these areas will definitely attract buyers the most.  Unless there are other major problems like flooring or electrical and plumbing, etc., of course these need to be taken into account in the budget as well.  So, it is true, renovation can be quite costly, especially if you do not have a budget to work with and you don’t hire the right tradespeople to do the work (unless you are handy enough of course!) And for those who have unfinished basements … well, that can certainly offer much appreciation with a blank canvas to play with!  As for those investors, like us, the option of an income suite is much more appealing (especially when it not only gives added value to your house, it can generate some extra income for you … or the next owner of the house!  How sweet!) 

Although renovation can be quite time consuming and expensive, the way my wife and I save on money and getting exactly what we want is by making sure we are the ones supplying our contractors the materials.  Because we’ve done many many renovation projects in several cities over the years, we have put together different teams to work on our projects because we know the quality of their workmanship and they can complete the job within specific timeline.  Because we supply all our materials, we basically just pay them for labour and we can control the cost of the materials. Be aware, there are some contractors who quote much higher because they provide materials and can inflate the prices on such items.  If you live in a major urban centre, there are usually many vendors that you can go to to source out your needs: tiles, kitchen cabinets, counter tops, vanity, etc.  My advice: go to the source, do your homework and compare their prices and quality.

A final point to consider if your renovation budget is limited … instead of a major renovation, I would recommend hiring a stager or an interior designer to help you “decorate” your home so that it appeals to the appraiser or buyer.  By doing this, the stager/designer can advise you (and even help you) on the possible need of painting, on how to place certain pieces of furniture to fit in specific areas of the house or changing window coverings, wall art, mirrors, etc. to brighten up the room, or most importantly, to declutter so that accent pieces can make the area more spacious, tidy, clean, stylish and luxurious!  All these advices from a designer can save you thousands of dollars if you do not have the budget for a full renovation!

How do I know this truly works and is worth every penny?  Luckily, it is because my wife is an interior designer and stager with a proven track record.  She has helped me in all our buy-fix-sell projects and we have always set the sold price record in the neighbourhoods that were sold in.  She’s the one with the taste and eyes for value-added features.  So, if you are not good at picking out colour, furniture, and styles, find someone who can.  If you want your house to help put money in your pockets, then, it needs to “show” well to either the appraiser or the buyers … The better looking your house appears, the more money it will rake in for you!  Hey guys, let’s face it, it’s often the women who make the decision in home buying so let them take credit for it!

If you are looking to give your home a makeover or in need of major renovation, feel free to contact our team at CE Properties and we would gladly assist you in the process!  Happy Springtime to all – enjoy the new life around us!