Performing renovations on your home can add value to it, especially if you plan to sell it in the future. But there is now a way to get more value out of your property without selling it.
A report from the Financial Post indicates that home renovations can add value and size to a property, but without the added transaction costs that can sometimes be in excess of 10%. This is dependent on where in the country your property is located.
Stricter rules put forth by the federal government have made it more difficult for homeowners and real estate investors to get more cash out of renovating their properties. At one point, a home could be refinanced for up to 90% of its original value, the new rules have lowered that benchmark to 80%.
Despite this change, Canadian property owners have found alternative means of adding value to their holdings. According to the results of a Bank of Nova Scotia study, 44% of Canadians will renovate their homes within the next two years. Of that group, 62% said that they will bankroll the renovations with cash, which, in turn, can save them money.
Although renovations can often be costly, cash transactions can save homeowners up to 10%, which can prove to be helpful in the long run.