Based on the 2019 CIBC home and bathroom renovations Poll, approximately 49% of Canadians are planning to undergo house renovation for their property this year. On average, they allocate a $10,211 budget just for renovations alone. However, among those who already have their renovations completed, 39% of them end up spending more than their initial budget.
This just goes to show that renovations can easily get out of control, especially if certain factors are not carefully considered. That said, how much exactly should a home renovation cost? What are the factors that affect its overall cost?
Factors that Affect the Cost of Home Renovation
Certain factors come into play in a house renovation project. If not considered carefully, a renovation could end up exhausting all your funds, even the ones you set aside for other expenses. They’re as follows:
Needless to say, the larger your property is, the more money you will have to spend on a renovation.
The age of your house is another factor that can influence the cost of a renovation. For example, a century-old house could have faulty wiring, pipes, or fixtures that need replacement. Meanwhile, a newer house tends to do away with such issues.
DIY Vs. Hiring Professional Services
Performing DIY renovation will allow you to save money. However, it’s only possible if you have the knowledge, expertise, and time to pull it off. In this case, hiring a professional renovation service might just be more affordable in the long run.
If your renovation project involves a lot of extensions or rearrangements, then be prepared to shell out some extra cash. The more complex the project is, the higher it will cost you.
The type and quality of fixtures you plan to add in your property will also heavily influence your renovation project’s cost. For example, a basic bathtub from Costco will only cost you around $400 while a Victoria clawfoot tub will go up to $7,000 on average.
Other factors worth considering are building permits, architect/designer fees, emergency funds, and temporary relocation fees. Experts would recommend adding at least 20-25% to your current budget for any unexpected costs.
How Much Will It Cost You?
There’s really no solid estimate. After all, houses vary in size, so does the amount of work that goes into a renovation project. However, a general rule is to allocate 1% of your home’s value every year for any possible renovation and maintenance.
For example, if your house is worth $100,000, you’d want to set aside $1,000 every year into your high-interest savings account. This way, you’ll be able to address any renovation expenses easily.
For the sake of budgeting, here’s a breakdown of the general costs for each home improvement project:
- Bathroom renovation – $20,000+
- Kitchen renovation – $25,000 to $50,000
- Basement renovation – $10,000
- Painting cost – $10,000
Financing Your Renovation Project
Unfortunately, not everyone can afford the costs of a home renovation, especially if it’s a major project. That said, some of the options you can use for financing your project include applying for a personal loan or refinancing your mortgage.