If you are a homeowner in Toronto, you probably have mixed feelings about the idea of remodeling or renovating your home. While watching amazing transformations on HGTV may have you reaching for colour swatches, there is a lot to consider. Any upgrades you make today can add significantly to the resale value of your house should you decide to sell. The trick is to know what projects to take on yourself, and which ones to leave to the professionals in this current market. If you’re ready to embark on home renovations in Toronto, we’ve got some pointers to help you add the most value to your home.

The growing trend of home renovations in Toronto

Toronto’s housing landscape is as vast and diverse as the people who live there. Your typical neighbourhood consists of a healthy mix of older-style houses full of history and character amidst modern condos with the latest and greatest conveniences. There are also townhouses, new and old, along with numerous semi-detached residences and bungalows. It’s not uncommon to find a few custom homes that the owner has renovated into something completely new and unique, with some re-facing of the exterior done as well. Toronto’s dynamic housing market has seen a significant rise in renovations, with the trend being fueled by various factors:

Aging housing stock: Many homes in Toronto are aging and require updates to meet modern living standards.
Desire for modern amenities: Homeowners are increasingly seeking contemporary features and efficient use of space.
Property value enhancement: Renovations are often seen as a means to increase a home’s resale value in a competitive market.

Home renovations in Toronto and the Housing Market

Before undertaking any renovations in Toronto, it’s essential to gain an in-depth knowledge of its real estate market dynamics. Toronto is highly competitive; demand often outpaces supply. This may affect your renovation decisions as certain upgrades may yield higher returns on investment than others. Conducting thorough market research or consulting real estate professionals is necessary for making informed choices tailored to Toronto’s housing landscape.

Getting started with your Toronto home renovation

Understanding the scope of your project is crucial. It can vary from a fresh coat of paint in the hallway to gutting and remodeling your entire main floor. Just remember, bigger projects need more planning and more time (and often, a bigger budget).

What is the average budget for a home renovation in Toronto?

The average cost of home renovations in Toronto can be quite broad depending on scope:

Minor renovations: Painting, new light fixtures, or laying hardwood floors can range from a few thousand to $10,000.
Major renovations: More extensive projects (kitchen remodel, bathroom renovations, or adding a new living space extension) range from $10,000 to $100,000.

Key financial considerations for Toronto home renovations

On average, renovation costs in Toronto range for basic updates. Kitchen and bathroom updates range from $150 to $200 per square foot. On the other hand, complete gut renovations or high-end finishes can exceed $200 per square foot.

Total budget: Be realistic. Consider your savings, earnings, and how much you’re willing to allocate. Remember, stretching yourself too thin can lead to unnecessary stress.
Hidden costs: Surprises aren’t always pleasant, especially during renovations. Factor in a buffer for unexpected expenses – around 10-20% of your total budget is a safe bet. This may include a place to stay if you need to pay for it out-of-pocket while still paying for your mortgage/rent (amongst other expenses).
Return on Investment (ROI): Think long-term. Some renovations add more value to your home than others. A revamped kitchen or bathroom, for instance, can significantly boost your home’s market value.

Prioritizing projects during your Toronto home renovation

Before embarking on your home improvement plans, it’s a good idea to think about your priorities and what you want from the project. Are you planning to stay in your home? If you renovate for personal reasons, you’ll have more freedom with your design and decor. However, it never hurts to keep the resale value in mind, just in case you decide to sell a few years later. Be sure to get multiple quotes and comparisons for material and labour. Compare and negotiate; it’s okay to haggle! Splurging on must-haves and can’t-live-without items, like an expensive countertop, may be worth it to help with resale value. Consider compromising on less visible elements to manage costs.

If you are thinking of tackling the updates yourself, remember to consider the structure of your home, as it plays a significant role in planning the size and scope of your project.

Renovations to boost sale value

If you’re upgrading in the hopes of selling your home in today’s market for the highest amount possible, you’ll need to be more strategic in your approach. Some renovations add value, while others can even detract from your sale. Renovating to add equity to your home should be decided upon based on three factors:

Your location
The type of property you have
How the market is behaving at the time of sale

Be sure to consult a local real estate agent who is familiar with the ins and outs of your neighbourhood. Often, they will begin the process with a pre-list inspection to determine the best opportunities for improvement. If you are going to list your home, a top-to-bottom overhaul may not be necessary. Instead, you can free up your time and energy by drilling down on minor repairs and updates that make visitors see your home’s true potential. The trick is to focus your attention on the rooms that are most important to prospective buyers.

What types of grants are available for home renovations?

Explore grants for home renovations through your municipal and local organizations, as there are many grants available. For example, the government’s Green Retrofit program offers grants of up to $10,000 for projects that improve your home’s energy efficiency.

Here are some specific upgrades that generally make the most impact:

Kitchen upgrades: It’s the one room where everyone connects, no matter how busy life becomes. An attractive new backsplash, fresh paint, and updated hardware on drawers and cupboards can give your home a stylish, contemporary appearance. (Cost range: $10,000 -$25,000).
Bathroom makeovers: Some believe it is as important a room to renovate as the kitchen. It needs to be functional to get everyone out the door in the morning, but also a quiet escape at the end of the day. Look at repairing silicone around the sinks and tubs, adding lighting or a fresh coat of neutral paint to make it seem clean and fresh. (Cost range: Minor update: $5,000 – $15,000; Full renovation $15,000 – $30,000).
Basement renovations: In Toronto, transforming an under-utilized space in a house into a functional living area can add significant value to your home. (Cost range: Water-proofing starts at $10,000; complete overhaul with high-quality finishes runs $30,000 to $60,000).

Hire the right team for your renovation

Now that you’ve run the numbers and have a plan in place, it’s time to start making things happen. If you are handy, you may decide to tackle some of the work yourself. When looking for a general contractor, think of experience, especially with older homes. These pros have seen it all – from wonky wiring to hidden asbestos. It can be difficult to find a contractor, as many are booked months, even a year, in advance.

Obtaining the necessary building permits and ensuring compliance with local building codes is essential, but can add to the total cost of a renovation project.

For the best results, you likely want a team of professionals to help and guide you through the process:

A real estate agent with investment experience in Toronto can help you focus on the projects with the most significant payoff.
A financial advisor will give you a clear picture of what you can afford when it comes to renovations. This is particularly important when upgrading your home for personal reasons without a sale or income opportunity in mind. In addition, they can review your financing options with you.
A team of contractors and tradespeople can take much of the work off your plate, allowing you to oversee the process with less stress and fewer demands on your time. They will also ensure that all projects are completed to code.

Concluding thoughts

Embarking on a home renovation journey in Toronto presents an exciting opportunity to transform your living space. Whether you aim to modernize, preserve historical elements, or maximize functionality, these renovation ideas cater to the diverse needs and preferences of Toronto homeowners. Remember, thoughtful planning and professional guidance will help you achieve the perfect renovation for your Toronto home. A large percentage of homeowners overlook insurance coverage during the planning stages of a renovation. Regardless if your project is big, small, DIY, or contract, you should discuss your plans with your isure broker or insurer. It’s important to maintain adequate insurance coverage that reflects your home’s changing worth. Neglecting this one simple step can be costly down the line if you run into any troubles during the renovation!

Is a home renovation in Toronto worth considering?