I wasn’t surprised to learn that almost half of Toronto homeowners have decided they’d rather renovate their homes than sell. Because housing prices are still high, both downsizing and upsizing are less affordable. In this blog I look at the rise in renovations and why it could be the answer to many homeowners’ problems.
The Numbers: 39% to 48% Choose Renos
According to a Billdr survey, 39% of homeowners said they would rather renovate their home than try to make a move. In the 35- to 54-year-old range this number jumps to 48%. The reason? The price of real estate in Toronto is just too high. Another reason? A lack of inventory for the type of house they’d ideally like to own. Homeowners are now realizing that renovations create their ideal living space, while allowing them to maintain the same mortgage at manageable interest rates. This sounds much better than risking selling in what has become an unstable market with volatile interest rates.
Lending Rates and Renovations
Remember, the the same high interest rates keeping you from buying a home are the same interest rates that are applied to a home improvement loan. If you don’t have savings for the reno, it is very important to consider the type of loans available. In my opinion, a home equity loan is your best bet. This allows you to take advantage of the current value of your home, maintain your current mortgage rates, and remove the worry about the high interest rates and additional payments of a new loan. In fact, home equity is the way that 22% of those surveyed planned to pay for their renovations. Smart renovations also increase the value of your home, helping to cover the interest paid on your home equity loan.
First-Time Buyers and Renos
The cost of houses in Toronto has many first-time buyers looking for diamonds in the rough. Buyers are willing to risk paying less for a fixer upper, and more for renovations to create their ultimate dream home. In fact, the survey showed that 60% of buyers would rather invest in renovations than pay more for a home that didn’t quite meet the expectations of their dream home.
Home Renovation Stress
The survey acknowledges stress is a major consideration when undergoing a home renovation. Over 25% of those surveyed who had recently undergone a reno did find the experience “quite stressful.” However, whether you want to buy a fixer upper or renovate your current home, smart planning reduces stress and ensures you come out ahead.
I am happy to help you understand the benefits of home renovations. The professionals at 2 Birds Design and AK Studios along with a seasoned contractor at Focus Construction have helped many of my clients understand their renovation options. So, if you’re thinking of buying a home that needs work or wondering what renovations make the most sense in your current home, a consultation is your first step.
I’ll help you learn more about costs and timelines as well as discover creative solutions that will work to improve your living space and increase your home’s value, so let’s chat! If you also want to learn about more you can do to get some great curb appeal for your home, click here.
Photo by Roselyn Tirado on Unsplash
