Looking at doing a home renovation? There’s lots to think about, how much will it cost, what might your recoup if you’re going to sell your home, and what exactly you might do.
And while a home renovation can increase the value of your home, you may be surprised to hear that a renovation won’t pay itself back.
That’s not to say they aren’t valuable. If you’re planning on living in your home for a long time, a renovation can make it much more appealing to you.
If you’re going to sell? Generally speaking, don’t bother.
Here’s a look at some renovations you can do and what you might expect to get back.
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Overview of home renovation values
Here’s our overview of some renovations you can do, how much they will cost, and how much you can expect to recoup.
For most of our numbers related to cost, we used this site. Their numbers are based on projects in Toronto and Montreal, so we used the lower values they presented.
As for what percentage you’ll recoup, this site has data from 150 different U.S. housing markets to estimate what people can get back. It’s not Canadian, but it still gives a good idea.
Here is a summary of projects, a rough cost range, and how much of it you can expect to recoup.
| Improvement | Cost range | ROI |
|---|---|---|
| Upscale garage door replacement | $1,000 to $4,000 | 93% |
| Siding replacement | $5 to $7 per square foot | 65% for vinyl siding, can be more with other types |
| A new deck | $60 per square foot for wood, $90 for composite decking | 66% for wood, 63% for composite |
| A reasonable kitchen remodelling | $19,000 | 72% |
| Energy efficient windows | $800 per single window replaced | 69% |
| Bathroom remodel | $8,000 for a simple reno | 53% |
| Roofing replacement | $3 per square for asphalt shingles, $15 per square foot for steel | 60% for shingles, 56% for steel |
Here are more details on how much each of these projects can cost, and what you can get back.
1. Upscale garage door replacement
This may be a surprising entry here, but upgrading your garage doors can have a big impact on your home price.
How much will it cost? It all depends on what you’re after. This Home Depot page will give you an idea of how much it will cost.
For example, you could pay as little as $1,000 for a basic steel door, but get a composite garage door with windows and it can cost up to $4,000.
Of course, that’s if you install it yourself. It will cost more if you hire someone to do the job.
But the return on your investment? In both cases, it’s quite incredible. You could recoup almost 94% of your investment.
2. Siding replacement
When you’re looking at a house, what’s on the exterior is going to make your first impression. And, when it comes to the house itself, that primarily means the siding. The right siding can give your home some extra curb appeal.
There are several different types of siding you can get, but the top choice for most people will be vinyl siding. It generally has the best price, and is the easiest to maintain.
How much will it cost? You could expect to pay anywhere from $5 to $7 per square foot. The price will vary greatly depending on the time of year you choose to renovate – contractors are usually much busier in the spring, summer, or fall, and not quite as busy in the winter. Cost also depends on the exact profile you choose, as well as the colour you go with. Darker colours tend to cost more than lighter colours.
So, let’s say you have 1,500 square feet of siding to install that costs between $7,500 to $10,500. How much of that will you recover through a sale? Around 68%.
There are other choices in siding. Here are a few of your other major options and how much of your investment will transfer over to your home’s value:
- stucco – 69%
- stone veneer – 92% (although, it’s quite expensive to install)
3. Adding a deck
In the spring, summer, and fall, people love spending time outdoors. A deck is one way to enjoy the outdoors when you’re at home.
You’ve got 2 options when it comes to materials to build a deck. You can go with pressure treated wood or composite decking. If you’re new to composite decking, it’s essentially a combination of wood particles, plastics, and polymers. However, it’s just used for the surface, the sub-frame is still made of pressure treated wood.
Each has a major advantage. A wood deck is much cheaper to build, but will need more maintenance. At some point in time, you’ll find yourself having to replace a few deck boards every year, especially if your deck gets lots of sun.
There are no such issues with a composite deck and they often come with long warranties.
The cost of such a project can be quite large however. Here’s what you would expect to pay per square foot of deck:
- Wood – $60 per square foot
- Composite – $90 per square foot
Therefore, if you were to build a 15′ x 20′ deck (300 square feet), that will cost $18,000 for wood and $27,000 for composite.
The actual return? Quite similar for both. You could recover 66% of your investment with a wood deck. For a composite deck, it’s actually lower at 63%.
4. A reasonable kitchen remodelling
One of the most popular places in any home is the kitchen. As the source of food in a house, it’s a space that gets used all the time.
It’s also a common place where people start when remodelling a home, but it’s a reno where the cost can get out of hand quickly. With the many types of cabinets you can get, various countertops, and even appliances, you bet costs can add up quickly. Sure, those granite counter tops are nice, but they’re also ridiculously expensive.
So what’s the cost of a reasonable kitchen remodel? If we’re taking the more affordable route, something along the lines of $19,000 would be reasonable. Start throwing in more expensive countertops, flooring, and new appliances, and you could easily be looking at $60,000 or more.
Recouping your value? Well, let’s just say, as you spend more, the return goes down. Here’s what you’ll recoup for various levels of remodelling.
- minor remodel – 72%
- major mid-range remodel – 57%
- major upscale remodel – 54%
Our tip: keep your kitchen reno work smaller to get the most value for your work.
5. Energy efficient windows
Anything when it comes to improving efficiency will get you more than just an increase in your home’s price, you’ll also cut down on your energy costs to heat or cool your home.
One major source of heat loss is through windows. Getting better windows can go a long way towards improving the efficiency of your home.
The average price of a new vinyl window is around $800, but will obviously vary with the size and type of window you want to install.
How much will your recoup? The average mark is 69% (among the best of the reno options listed here). However, that doesn’t include any potential energy savings.
6. Bathroom remodel
The right bathroom can certainly be an eye catcher when someone is looking through a house.
But they’re also one of the worst projects when it comes to getting your money back. No matter the size of your job, only expect to recoup 53% of your cost.
If your bathroom is in desperate need of a remodel, keep it simple. Replace some countertops, cabinets, and faucets, and don’t worry about the major stuff like a new shower or bathtub. Sure, a tiled stand up shower with a lovely glass door is nice, but it’s also expensive.
And while a luxury bathroom looks nice, also remember you don’t spend much time in one either.
As for cost, a simple reno could start at $8,000, but a full luxury remodel can cost upwards of $30,000 or more.
7. Roofing replacement
Put this under the category of something you need to do, not something you want to do, but replacing your roof can make your home more attractive to a buyer. It’ll be one less thing for a new homeowner to think about.
You’ve got 2 major choices when it comes to replacing a roof. First, there are asphalt shingles.
A typical roof will cost around $3 per square foot of roof. You can reasonably expect it to last 25 years.
Your other choice is to go with a steel roof. A steel roof is more expensive, running at $15 per square foot.
A steel roof has some advantages, the biggest one being that it will last much longer. You can easily get over 50 years of life out of a steel roof, but they have their downsides compared to shingles.
A steel roof will be louder when it rains and snow can slide off quite easily unless some snow rakes are also installed.
How much can you recoup? Oddly enough, a steel roof will recoup 56%, lower than an asphalt roof at 60%.
Best credit card for home improvement
Doing a lot of the work yourself? You could be looking at some major costs.
So why not get a credit card that will reward you for your purchases?
We’ve covered what works best for cash back here, so here we’ll focus on what works best if you want travel rewards.
For the most part, home improvement stores aren’t a category bonus with a credit card. You’ll need a card that offers a high rate of return on any purchase.
Here are 3 options to consider:
| Credit Card | Welcome Bonus | Earn Rates | Annual Fee, Income Requirements | Apply Now |
|---|---|---|---|---|
| RBC Avion Visa Infinite | 55,000 (terms) |
* 1.25 points per $1 spent on travel * 1 point per $1 spent on all other purchases |
* $120 * $60K personal/$100K household |
Apply Now |
| Amex Marriott Bonvoy | 50,000 (terms) |
* 5 points per $1 spent at Marriott properties * 2 points per $1 spent on all other purchases |
* $120 * None |
Apply Now |
| Amex Green Card | 10,000 (terms) |
* 1 point per $1 spent on all purchases |
* $120 * None |
Apply Now |
You can also see more options for yourself by heading to our compare cards page.
A top Visa for earning high rewards on any purchase
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GC: $100
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$100 GeniusCash + 55,000 points + Up to 2.33% return on purchases.*
The
While you’ll only earn 1 point per $1 spent on all purchases (1.25 points on travel), it’s also what each point is worth that counts.
And in this case, RBC Rewards points are worth up to 2.33 cents each when redeemed using the Air Travel Redemption Schedule, giving a return of up to 2.33% on your purchases.
And of course, you can also redeem for any travel from RBC Rewards, where each point is worth 1 cent.
Earn plenty of hotel points on every purchase
To earn some free nights at your favourite hotels, and get a high rate of return on your purchases, the
With this card, you’ll earn 2 Marriott points per $1 spent on all purchases (5 points at Marriott hotels).
We value a typical Marriott point at 0.97 cents, giving a return on all your purchases at 1.94%.
On top of that are these sweet Marriott benefits:
- annual free night certificate for a free stay of up to 35,000 points,
- automatic Silver Elite status, and
- 15 Elite night credits every year.
Best no annual fee credit card
If you just want to earn rewards for no annual fee, the
For rewards, you’ll earn 1 point per $1 spent on all purchases, but more than that is what each point is worth. Amex Membership Rewards are worth up to 2 cents each. This gives an incredible return of up to 4% on your purchases – pretty sweet for a card with no annual fee.
Best credit cards for home improvement compared
How do these credit cards compare when it comes to home renovations? Here’s a breakdown in a few key areas.
Average rate of return on home improvement stores
Here’s the feature most people are after – the rewards. Here’s how each of these cards compare in this regard, based on a typical $2,000 monthly spend.
The low interest card stands out thanks to its lower interest rate, but our other 3 options all provide excellent rewards on purchases.
Annual fee
What about the annual fees? Here’s what each of these cards will cost to keep in your wallet.
As you can see, you’ve got a choice in what you want to pay for an annual fee. You can go with a typical annual fee of $120, or pay no annual fee at all.
Interest rates
Finally, here are the purchase interest rates for each of these cards.
Want to see more best credit cards for home improvement? Here are even more options and ways to finance your project.
Your turn
Renovations can be an expensive proposition. And while it may be surprising, don’t expect to recoup your cost through a sale.
Always think carefully about what you want to do. If you plan on staying in your home for a long time, it never hurts to put some money into it to make it better for you.
Have any renovation stories you want to share?
Let us know in the comments below.
FAQ
What home renovations have the highest ROI?
When it comes to home renovations, generally speaking, upgrading your garage doors and doing a minor kitchen upgrade provides the best return on your investment.
Are home renovations always a good idea when selling a home?
Generally speaking, it’s not a great idea to do a home reno when selling your house. You won’t recoup all the money you spend for a renovation project. That being said, renovations will make your home easier to sell, which can be important if the real estate market is a cold one.
What credit cards are the best for home renovations?
The best credit cards for home renovations are cards that offer a high rate of return on all your purchases. You can see 4 options for earning travel rewards here.
Are there home renovations that are not worth doing?
When it comes to home renovations, there are some renos that are not worth doing. High-end bathroom and kitchen upgrades are ones to avoid (unless it’s something you really want). A roof also won’t recoup much of your cost, but it’s also a reno that’s needed. Nobody wants water leaking into an attic.
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