Yahoo Finance Canadians are out-of-touch when it comes to reno budgeting
Canadians are under-budgeting on some key home renovations, according to data collected from two million homeowners by TrustedPros.
Bathroom renovations, which five out of ten provinces ranked as most commonly searched and quoted project in 2016, proved to also be the most ill-planned from a budget perspective, says the website, which helps Canadians research and review contractors as well as get free estimates for projects. Canadians, who are attracted by the roughly 70 to 100 per cent return on updating their bathroom, budgeted $7,905.80 on average.
“This budget may be appropriate for homeowners who are giving a small bathroom – 5ft by 6-8ft – a facelift, rather than a full reno,” says the report. “However, gutting a bathroom and installing all new drywall, insulation, and fixtures can dig into your wallet – any budget under $11,000 is really cutting it close to an under-budget reno nightmare.”
Accorded to TrustedPros, Canadians should be budgeting somewhere in the realm of $12,500 to $20,000 for a full bathroom renovation.
“Try to utilize the location of existing plumbing or HVAC work… relocating plumbing fixtures or vents and ducts could be costly,” says Max Sheppard, president and CEO of TrustedPros.
Materials are also key.
“Granite and marble are beautiful, but pricey – there are other options that are aesthetically pleasing and affordable, such as laminate or tile,” he says.
Another commonly under-budgeted renovation is kitchens, which Canadians set aside an average $14,479 for in 2016. According to the study, that should fall closer to $20,000 on account of the licensed electrical, plumbing and gas experts needed to install the bare necessities.
“If you think that hiring an expert is expensive, wait until you hire an amateur,” says Sheppard. “A contractor who isn’t well-seasoned with a good track record will end up costing you more – even if they charge you less.”
He recommends thorough research into any contractor before hiring them and making sure they have a valid trade license, WSIB insurance, and have taken out the appropriate permits for the project.
You can also do smaller projects yourself to give the space a new look without the overheads of hiring a contractor and completely gutting your kitchen.
“Cabinet re-facing can give your space a new look, without the cost of tearing out old fixtures and rebuilding or replacing them,” he says.
The study also pointed to new floors as a costly renovation Canadians frequently underestimate, budgeting $3,258 on average as opposed to the recommended $7,000 and up.
Sheppard says costs can be kept lower by shopping for your own materials or comparing retailer prices after getting an estimate. You can also use the “hidden” materials already there.
“Reclaim old hardwood floors that may be hidden under carpet, even if they are the wrong colour,” he says. “Sanding and refinishing floors is considerably cheaper than installing new material.”
Canadians also tend to misjudge the cost of installing windows and doors, pegging their budget around $8,522 on average versus the $10,000 and up that TrustedPros recommends. While prices vary province-to-province, a standard window installation can cost more than $1,600.
To keep budgets on point, Sheppard recommends listing the items/fixtures you think you’ll need before the renovation and shopping for prices.
“Plan for a contingency fund that covers any ‘surprises’ that may come up including unforeseen delivery fees,” he says. “Set aside an additional 20 to 40 per cent just in case.”
Use the seasons to your advantage.
“Avoiding peak seasons – predictably, pleasant weather equals super-busy contractors – can save you a bundle of cash,” he adds. “Depending on where you live, re-roofing in late fall, early spring, and late winter can be a great time to renovate; mainly because contractors have free time on their hands, and they can give you room to haggle over prices.”
And finally, don’t rush the renovations.
“Cut the fat and prioritize – does the sum go a bit overboard according to how much you want to spend? If it does look for low-cost alternatives,” he says. “Feel free to choose one aspect of the reno that you wish to prioritize and work around those numbers to reach your ideal budget.”
