Are you thinking of renovating or replacing your Comox Valley home? Throughout the year people are active in the Comox Valley buying, selling, and renovating their homes. A frequently considered question is whether or not to renovate a home. There are, of course, many different reasons for undertaking a renovation. Before embarking on such an adventure, it is worth spending some time thinking about why, and to what extent the renovations will be done. Many people renovate for their own enjoyment. Some do so to add value to their home. Others renovate to make their home more attractive to sell. Whatever your reason consider the following.
First, if the contemplated home renovation is substantial, check with Revenue Canada to see if there are any tax implications. For example, the Revenue Canada website states that “sales of substantially renovated houses or houses with a major addition are treated in the same way as sales of new houses”. GST/HST (as applicable) may apply and there may be a tax credit as well. Each situation is specific and it is a good idea to check with Revenue Canada to see if what you are planning to do to your home will trigger either a tax implication, a tax rebate or both. Doing your homework in this regard may prevent a surprise down the road.
Second, it is generally a good idea to check the title of your Comox homes with titles to see if there are anything covenants or any other restrictions that may impact or limit your ability to renovate. For example, if your home is located near a fish bearing stream, Riparian Regulation restrictions may exist that can affect your plans. There may also be other restrictions such as building schemes that affect your neighbourhood. As well, while many things may be found on your title, not all are necessarily there. Once again, it is important to do your homework before you proceed with any major renovation plans to avoid unpleasant surprises down the road.
Third, if you are renovating to add real estate value to your home, it is often useful to understand which renovations add value and which do not. The RENOVA program built by the Appraisal Institute of Canada and available on their website is a good tool to give you a sense of this. Renovations such as those done to the kitchen and master bathroom are popular and they often add value to a home in the 75-100% range of the amount of the investment. Some others such as the addition of a swimming pool can add little to no value, and in some cases actually add negative value. Knowing what does and what does not generally add value is important at the outset.
Finally, renovating a home does not just have to be about adding value. You may be contemplating a renovation to add a feature (such as a home theatre room) for your own enjoyment. Only you can determine your motivation for a renovation, but other professionals can provide you with information to help you make informed decisions that should provide peace of mind for you.
Clearly, not all issues you may have with your home can be addressed through renovations. You may be looking for a new location that offers more privacy, a larger or smaller yard, a view, a quieter area, or some other feature that you do not have right now. Real estate is immobile and all about location. When renovations will not address your needs, a move to a different location may be in order.
Renovate or replace? Your choices are many. When you need real estate information or advice to help you decide contact Brett Cairns of RE/MAX Ocean Pacific Realty.