All around the web there are articles and Pinterest boards showcasing the best renovations to increase the property value of your home. While some changes, such as decluttering, painting or updates for curb appeal may not cost much, others might require a larger investment. If you are planning kitchen and bathroom renovations, roofing, windows or doors replacement, or simply updating fixtures and flooring, you might need to secure financing first. If you are looking to downsize, but don’t have cash flow for investing in a renovation, Graysbrook Capital can help you leverage your home equity to finance renovations.
With baby boomers representing the majority of our population in Atlantic Canada, more families are looking to downsize. Many are reluctant to move due to emotional connection with their current home – however, downsizing does offer many perks, including:
- Freeing up some cash for hobbies, travel, etc.
- Paying off your existing mortgage
- Increasing the amount you can set aside for retirement
- Lower cost of living
- Allowing the opportunity to invest in income property
Once you have made the tough decision to downsize, the next step is to plan the sale of your home. Of course, you want to get the most out of your current home so that you can start your new chapter off on the right foot. Completing minor renovations prior to listing is one of the best ways to increase home value and equity. Replacing carpet, adding a fresh coat of paint, patching holes or fixing a leaky tap may take a few hours, but the return will be much more. We’ve had several clients of our own who have invested $20,000-30,000 into their home prior to listing, and were able to increase their selling price by $40,000-50,000! Graysbrook is here to help with your renovation financing needs.
What are the best (and cheapest) renovations to make, you may ask? Well, consider what people notice first and also what is least expensive, but will make the most impact. For example:
- A fresh coat of paint in a neutral colour
- New landscaping on the front lawn and add some potted plants to the deck
- Replacing roofing, windows and doors will bring the most value, as it is about safety and energy conservation
- Consider changing the knobs, countertops or even the colour of the cabinets in the bathroom and kitchen; these two rooms are considered the most valuable in a house
While aesthetics are important, in order to get the return you are hoping for you will need to change more than simply a few throw pillows in the chair or a few books on the coffee table. But, before you go tearing down walls or doing any major work, consider the value the improvement may add to the overall value of your property. A professional real estate appraiser who knows your neighbourhood can help to make sure you can get the best financial return on your investment without over-improving your home.
Renovations are the perfect option for clients looking to downsize and maximize their return. We can help you to borrow the money you need in order to sell your house for maximum value. Home renos can be time consuming and expensive, but it is our goal to make downsizing and increasing the value of your home easier. Contact us today and start your new chapter of life with Graysbrook.